Why Use a Mortgage Broker for First Home Buyers?
There are typically three main types of property buyers in today’s market. First there are those that want to buy land to develop homes (developers). Secondly, there are those that want to purchase property for investment purposes (investors). Finally, there are first time home buyers that are just entering the market. Plenty of new buyers choose to go directly to banks, but did you know that you could be missing out on great deals by using a mortgage broker instead?
Why use a mortgage broker for first home buyers?
If you don’t know what a mortgage or home loans broker is, then the simplest way to describe them and their services is to say that they are a third party specialist, that helps with connecting their clients with the right type of mortgage for their needs. They are often used by those that want to get the most from their home loan package – but as many new buyers aren’t overly experienced in the field, it’s not uncommon for brokers to be overlooked.
How can they help?
These specialists can help in a great number of ways; from evaluating the current lending options on the market to hone in on the most appealing deals, right through to comparing interest rates to allow their client to pay back as low an amount as possible each month. First time home buyers in particular often fall foul to unfair deals from banks – and that’s why many apply to re-mortgage after a few years, simply because they signed up to the wrong type of home loan in the first place.
To avoid the risk of being duped by banks, taking on the services of a broker is definitely recommended. These financial experts can typically recognise a bad deal when they see one and for new buyers, the ability to turn to someone with inside experience can be hugely rewarding.