Do you need a mortgage broker to buy a house?

February 9, 2024

There’s plenty of things to know before you take out a mortgage on your new home, and a mortgage broker can help guide the way. With a little research however, you can also find a great deal on a mortgage on your own. The choice is yours.

What is a Mortgage Broker?

A mortgage broker is your guide to the world of home loans, housing deposits, rates, features and management. Their job is to specialise in helping you find the best deal on a home loan and assist you in finding options that are financially sustainable as you begin the journey to owning your new home. A good mortgage broker will:

• Better understand your needs and goals when buying a home
• Figure out what you can afford to borrow
• Provide you with multiple options that will help you make an informed choice of lender
• Explain the conditions of each loan, including all the costs, fees and features
• Apply for a loan on your behalf, and manage the process through to approval

Put simply: a mortgage broker is the middleman between you and your lender, working to simplify the process of taking on a mortgage as you prepare to buy a home. If you’re keen to make the process of buying a home even easier, house and land packages help ensure that the costs are accounted for upfront. Homes in communities such as Waterford make it easy to navigate and understand the home buying process, to get you from dreaming about, to living in, your own home sooner.

How Does a Mortgage Broker Specialise?

They’ll help you understand what all the strange abbreviations and terminologies mean, from ROI to LMI, and what on earth a loan to value ratio is. Think of a mortgage broker as your translator and guide through the sometimes confusing world of home buying. If you’re thinking of building your own home and investing in an affordable land package like those at Waterford, speaking with a mortgage broker can help you figure out what grants you’re eligible for.

You can meet in person, over the phone, or over video conference, so you’re not limited to finding a local mortgage broker. Local brokers may understand the area better, but dependent on your budget, goals and needs, shop around for your guide!

How Much Does a Mortgage Broker Cost?

Not a thing! At least, not upfront. A mortgage broker often takes a commission from a lender for selling their products, which means that they profit off who you choose to borrow from. This is important to note, as it could influence what loans a broker recommends you.

Some brokers charge a direct fee rather than taking a commission, to help make the process more transparent. If you’d rather not pay an upfront fee, don’t be afraid to chat to your broker about who provides their commissions, and work together to build trust as you navigate the lending process.

Research is Everything

Before and after meeting with a mortgage broker, make sure to do your due diligence. This means:

• Making sure that your mortgage broker has a valid license to provide financial and credit advice. The easiest way to check their license is on the ASIC Connect Professional Register.
• Creating a list of must-haves and nice-to-haves. Is a pool essential, or do you need a large entertaining area? What amenities are within easy walking distance? Master-planned communities cater to many of the must-haves, to make those nice-to-haves more achievable.
• Bringing along questions! Keep asking until you’re confident, and don’t be afraid to ask questions like ‘how do you get paid for the advice you’re providing?,’ ‘what fees will I have to pay?,’ ‘why did you suggest this loan for me?,’ and ‘could you show me more options?’
• Asking for a written quote from your broker that includes the type of loan, amount, duration, interest rates, and any fees you need to pay.

If you’re not comfortable taking on a loan right away or want time to shop around for lenders and brokers, trust your gut and keep going. Lower interest rates can save you thousands of dollars in the long term, so it pays to take a slow and steady approach to finding your perfect home loan, for your perfect home. You’re under no obligation to take the first, second or even third loan presented to you, so trust your gut and don’t be afraid to get a second opinion.

Takeaway: Is a Mortgage Broker right for you?

A mortgage broker can help you navigate the home loan process, and advocate to lenders on your behalf to help make the dream of owning a home a reality, sooner! It’s essential to do your research, whether or not you decide to see a broker or begin the loan process on your own.

It’s absolutely possible to navigate the world of banks, loans, interest rates and fees without a broker. No matter what you choose, the journey to home ownership is an exciting time, and that includes sorting out your loan! It’s time to start dreaming of the perfect location to invest in: in a community close to local schools, amenities, and transport links.

Once you’ve got your loan planned, why not visit Waterford? Waterford is set to be the most desirable address in Chisholm, East Maitland. Close to the beaches and craft breweries of Newcastle and with all the space that comes with planned living, finding your dream home may be closer than you think!

Waterford is a community living at its finest. A 30 minute drive from Newcastle and nestled into the spacious surrounds and natural escapes of East Maitland, enjoy tranquil parklands, panoramic views and easy access to all the essentials.

At AVID Property Group, we create places where people love to belong. To find out more about our developments in New South Wales, Victoria and Queensland and how you can invest in the home of your dreams, contact us today.