How Your Mortgage Broking Experience Compares to ASIC Findings
ASIC conducted a shadow shopping exercise to review the mortgage broking industry. This mystery shopping practice aimed to better understand the home loan purchase process from the eyes of a consumer to evaluate the transparency of the industry. There are three key findings that ASIC observed in the industry that can help you better understand the experience of using the services of a mortgage broker.
1. Finding the best home loan solution
No matter how well you think you understand the loan conditions, it can’t compare to the care and knowledge of a mortgage broker. Based on research, 93 per cent of people who used the services of a mortgage broker are confident that they received the best interest rate compared to the ones who went to the lender directly. It is important to note that while the lowest rate offered by the lender might seem appealing, it may not be the best home loan for you. By using the services of a mortgage broker, you will be able to secure a mortgage loan that fits your financial goals, needs, and circumstances like a glove.
2. Difference in the amount of mortgage loan options presented
Finding a perfect loan is an extremely personalised experience. That’s why there can be inconsistencies when it comes to the number of mortgage loans presented to each client. Every customer is different, requiring different loan types and features. While some clients can have between four and six loans to choose from, others are perfectly fitted for a single loan. No matter the circumstances, mortgage brokers work their best to provide multiple options to make sure each client is suited for a palette of loans to determine a clear winner.
3. First home buyers are likely to go through a broker
ASIC found that First Home Buyers were more likely to take out their loans with a mortgage broker. It comes at no surprise as Mortgage Brokers have access to the entire lender network and an understanding of each loan’s features. Sorting through thousands of home loans can be overwhelming and confusing, especially for the first time, so by using the services of a mortgage broker, you’re most certainly guaranteed to receive a mortgage solution that is unique to you.
Our team of mortgage brokers will take care of your financial needs and provide you with a tailored service unique to your goals, needs, and circumstances. Book your free consultation today.
Source: The Adviser