Property Sales    Property Management    Mortgage Brokering

What is the best way to secure a home loan in WA?

feature image'

About 60% of residential home loans are now generated through the brokering channel.

So who is this brokering channel and why should you consider using them?

a.      Primarily, the brokering channels are independent agents who are accredited by the banks to help them source and lodge deals.   The banks pay these brokers an upfront fee as well as a trailer fee for any successful deals lodged.  As such, the services provided by brokers to you are basically free.   There are some brokers who provide a fee for service, however, this is currently not a common practice.

b.      As far as I am concerned, there are really no disadvantages in using the brokering channels.   In fact, there are some advantages, of which some are listed below:

– You get to see all the offerings from different banks from a single source.  Saves you time from shopping around.

– Based on your circumstances, your broker will be able to assist you to secure the needed loan as they should be familiar with the various credit policies from differing banks.

– Bank staff change very frequently.   However, if you deal with brokers (particularly the business owners), you will be able to build a longer term relationship.  It will certainly simplify the whole process of making your purchase.

– These services are at no cost to you.

So, in a nutshell, you have two options if you are looking for a loan:

1)     Go and visit all the lenders that you can think off and spend time securing the most suitable loan for yourself, or

2)     You can choose a broker that you are most comfortable with and let him recommend to you what is currently on offer in the market.   It is in his best interest to service you well as this is his rice bowl.