All across Australia, the services of a mortgage broker are becoming more and more popular but although any mortgage broker may be able to assist you, it is the local mortgage broker that can offer the most assistance. The reason for this is that they will know of all the lenders in their particular area and so will be best positioned to find you a lender that suits your needs the best. For example, regardless of where you may currently be in Australia, if you are looking to buy a home in Melbourne, you would want to find a Mortgage broker Melbourne. The reason for this is that it is Melbourne lenders that are most likely to afford you the loan and it are the Melbourne brokers that will know each of the Melbourne lenders best. The reason why you would want a broker instead of just approaching a bank on your own is; all lenders, the different banks and other establishments, have their own criteria which they follow in order to grant loans. As most of rarely, often only once in our lives, buy homes, we are probably unaware of the different criteria each establishment wants us to meet and so we could end up going to several before we find one that accepts our request. By using a broker though, as they are already aware of the different criteria required by each of the different establishments, they can immediately go to the one which is most likely to accept your request, with the cheapest interest rates. This can therefore save a lot of frustration and of course time and as in Australia, it is the lender that pays the broker’s fees, there is no added expense for you getting an easier and quicker loan agreement. The broker will also of course assist you in filling out the reams of paperwork that often accompany such loans and all at no cost to you. This is a situation that is almost unique to Australia because in most countries it is the borrower that has to foot the bill for a broker. In Australia though, the lender pays the broker’s fees and is happy to do so as it is the broker that brings them the extra business. Perhaps extraordinarily for a lending establishment, they do not add these extra broker fees to the borrower’s loan, they absorb it themselves within their profits.
It is not only when you are looking to buy a home that a mortgage broker may be able to assist you as, despite their name, they can also assist with other types of loans as well, perhaps a business loan or even a personal loan for buying a car. Although brokers in Australia only became a profession in the early 1980s, already they have become well established and it was estimated that 43% of all mortgages granted in 2012, were initiated through the services of mortgage brokers. With the lenders continuing to pay the fees, this is a trend that will probably continue into the foreseeable future.