Mortgage Brokers Best at Getting Lower Rates
The majority of home loan customers believe securing the lowest possible interest rate from a lender is most likely to be achieved through a mortgage broker, a national consumer survey has found.
The poll by leading home finance broker Loan Market which asked ‘What do you think is the main benefit of using a mortgage broker?’ found 52 per cent of respondents said negotiating a better interest rate.
Loan Market Corporate Spokesman Paul Smith said 24 per cent of the 521 online respondents thought brokers helped save time and paper work while 21 per cent said they provided education about home loan products.
“Lenders are always open to negotiation and consumers see the broker as the most effective person to negotiate a lower rate on their home loan,” he said.
Mr Smith said the role of a mortgage broker was not simply to find the absolute lowest rate for a client, but to find a product that best suited their individual circumstances.
“Mortgage brokers can be very effective at negotiating rates and fees by showcasing an applicant’s strengths between two lenders who have different product offerings,” he said.
“But the true value of a good mortgage broker is that they’ll source the deal that’s right for a buyer’s individual circumstances.”
Mr Smith said just three per cent of those surveyed believed brokers were most effective in having fees waived.
“Almost half of all Australian home buyers now use a mortgage broker to help find a suitable home loan, rather than approaching their bank or lender directly,” he said.
Mr Smith said utilising the services of a mortgage broker enables consumers to ‘shop around’ among lenders without having to approach them individually.
Loan Market survey results:
What do you think is the main benefit of using a mortgage broker?
- Negotiating a better interest rate 52%
- Getting fees waived 3%
- Save time and paper work 24%
- Educate about products 21%