Want To Save Money? Refinance Your Mortgage Using A Mortgage Broker
Wikipedia defines a Mortgage Broker as “an intermediary who brokers mortgage loans on behalf of individuals or businesses. Mortgage brokers exist to find a bank or a direct lender that an individual seeks with a specific loan the individual is seeking. Mortgage brokers are regulated to ensure compliance with banking and or finance laws in the jurisdiction of the consumer.”
However there is so much more to what a mortgage broker actually does:
It is very important to note that your interest rate is not any higher for this service. Sometimes brokers can actually get better rates than what the major lenders provide.
So How Do They get Paid?
Mortgage Brokers have historically received commissions from the lender that they have arranged the loan with. There are two types of commissions – an upfront and a trailing commission. An upfront occurs usually one month after the settlement of your home loan and the trailing commission is a smaller commission which is paid monthly for every month that you have maintained your loan (with no late payments).For this reason this is why the Mortgage Broking Industry is seen to be a ‘free’ service. But their remuneration is simply from the lenders direct.
[Disclaimer: Changes may happen to our income in our industry and this may change in the future.]
The service of a Mortgage Broker is invaluable. It saves you time, it reduces your stress and it can even help you find a better rate than what you could possibly find if you tried to source a loan yourself. So if you want to save some money on your mortgage, call a Mortgage Broker today.
Louisa Sanghera is a Finance Broker for Residential Mortgages, Vehicle and Asset Finance, Commercial Lending and Budgetting and Cashflow Coaching. She had over 25 years in the Banking and Finance Industry before deciding to go it alone as a Broker and is the Director of Zippy Finance. Louisa lives in Turramurra, Sydney and is the mum of two children aged 10 and 8 and loves working her business around her family life.
Comparison Rate calculated on a secured loan amount of $150,000 for a term of 25 years. WARNING: This Comparison Rate is true only for the example given and may not include all fees and charges. Different terms, fees and other loan amounts might result in a different Comparison Rate. Fees and Charges Apply. Terms and Conditions are available on request.