Now is the most suitable time to get a house in Sydney. Currently, the interest rate in Sydney’s housing market is at its lowest. According to statistics, around 30,000 empty houses in the city are waiting for new owners. Most of these are situated in the Central Business District and Eastern Suburbs.
Functions of a mortgage broker
Buying your first home is not easy. You cannot just walk up to a house and give the seller your cash. It involves a lot of legwork and documents to fill out. It will be like stepping into a new world as you familiarise yourself with financial and legal jargon. By the end of the process, you might be too exhausted to enjoy your new home. The good thing is that there are professionals out there who can make the process easier for you.
Working with a mortgage broker is one of the best ways to ensure that you will get the most out of your money. One of their primary functions is to give clients financial advice when they purchase a new house. They can help you have a better grasp of your financial health since getting a home loan is a long-term commitment. With their assistance, you can live within your means and still snag the house in Sydney that you dream of.
Once you are on board, they will act as middlemen to connect with the right lenders. They can even help you be pre-qualified for a loan. Part of their services includes helping you process your applications efficiently. Some would go a mile and take care of all the legwork involving bank processes and registering your title to the Sydney government.
How to choose a broker
To practice as professional mortgage brokers, one needs to hold a legitimate credit license. Brokers are also obligated to become members of the Finance Brokers Association of Australia and the Mortgage & Finance Association of Australia.
When meeting your potential broker for the first time, you should ask questions concerning their experience and connections. As much as possible, get a broker with more than ten lender accreditations so that you can have many loan options. If you can, reach out to former clients to give you an idea of the efficiency of your mortgage broker.
Mortgage brokers earn money through commissions. This fee may come in the form of a monthly or upfront commission. The monthly commission is computed based on the house’s remaining loan. The percentage that brokers get is often less than 0.3% of the annual loan, which is rarely practiced. Meanwhile, an upfront commission is based on the actual home loan, which ranges between 0.3-0.7% of your house’s worth. As a precautionary practice, it is best to ask your broker to disclose the rate of commission he will get.
Getting your first house can be stressful, but having the service of mortgage brokers by your side can make it easier. These professional middlemen will be with you from assessing your financial health to securing your documents. If you would like to invest, you should call a mortgage broker, Sydney, to know your options.