Choosing a right product: Various lenders have different products for example fixed, variable, offset, Interest only etc. Choosing the best product depends on the client’s needs.
How much to borrow: The bigger your own deposit is the lessor the loan to value ratio (LVR). Normally if your LVR is more than 80% than you will not be charged lender mortgage insurance.
Using a Bank or Broker: Different Banks have different products to choose from and they have their own loan officers to help. Brokers help choose the products from vast number of lenders including Banks and Non-Banking Financial Institutions. A mortgage broker operates independently from lenders. An experienced broker with a wide range of lender contacts may also be able to offer you a better deal than those currently available on the market.
Interest and other charges: Different lenders charge different interest and charges. For example application fee, deposit fee, exit fee, annual fee, valuation fee and various other charges to be considered before taking a product.
Switching: Sometime loyalty doesn’t pay. Sticking to the same lender may not be viable in certain circumstances. A normal person just sticks to the installment and not aware of market changes or the changes in the same lender products. Here Broker can help you understand the product at that point of time and can save you a lot of money by switching to a different lender.