Mortgage Brokers, Australia

When people in Australia are looking to get a loan, it is increasingly popular for them to seek the assistance of a mortgage broker. And that has made mortgage brokers in Australia easier to find. Mortgage brokers melbourne2015, as with anywhere else in the country, can now easily be found online and are being done so at an ever increasing rate. The reason for the broker’s popularity in Australia in particular is because unlike in many other countries, it is the lender that pays the brokers fees and not the borrower. Even though the lenders in Australia now have to pay for any broker that is used, they do not add that extra expense to the loan, they absorb it themselves which means, there is absolutely no reason why a borrower should not use a broker’s services. Today it is estimated that in Australia, over 50% of all loans are now facilitated through the assistance of a broker and that 50% of loans are being finalized far quicker than any of the other loans. By using a broker, a buyer and relieve themselves of much of the painstaking frustration often associated with home buying as those niggling details are all taken care of by the broker. The broker will first establish what type of home you would like and then evaluate your ability to pay back whatever size loan you will need. As the brokers are aware of the different criteria each of the potential lenders will require to be met, they are in a good position to go to the most likely lender first, saving a great deal of time. They will of course though, only go to the lender once they have found a house which is suitable for you and meets most of the requirements that you stipulated. Once the broker has found an agreeable lender, they will approach the buyer for agreement on the terms of the loan. These loan agreements are often full of small print which is barely understandable to the layman but the brokers fully understand all of it and so will explain those details to you in depth before you agree to the loan. This is an added advantage of using a broker as often, without the assistance of a broker, many people agree to terms for loans which they do not fully understand and can sometimes regret it in the future.

Mortgage brokers in Australia only started to appear in the 1980s and didn’t start to really become popular until the late 1990s but now they have certainly made a name for themselves and one of the reasons for that is because they are strictly governed by the Australian Securities and Investments Commission who, if find that any particular mortgage broker gives advice that is not in the buyer’s interest and therefore costs the buyer more than what they should have paid, will hold the broker responsible for that extra cost personally. The broker must therefore, even though being paid by the lender, look after the buyer’s interests above all else.