Save With A Mortgage Broker

How Much Could You Save with a Mortgage Broker?

Can mortgage brokers really save you a lot of cash?

Most banks propose three individual types of services to their borrowers. The first is what most are greeted with when applying for a home loan and this option will typically involve a generic interest rate and specific terms and conditions. Then they have their deals that are reserved for specific clients, such as doctors (that are considered low risk borrowers), or property investors.

Finally, they have a more versatile option that most people don’t know about and they combine many of the features and advantages available in their other lending solutions; albeit within a far more customisable capacity. And when it comes to this type of customisation, mortgage brokers are at the forefront of lending options.

How much could you save with a mortgage broker?

Although the answer to this question may vary, the simplest way to define how much a broker could save someone would be by saying that it will be at least 5% of what the borrower would repay on a monthly basis when applying alone. This is a general estimate however, and in certain cases borrowers have been able to save much more than this percentage.

In some instances there have been reports of a borrower accessing particularly beneficial deals based on their credit history and borrowing power. Savings of up to 30% have been documented and this is something that many applicants miss out on. The harsh truth is that although most banks will tar their borrowers with the same brush; it’s far more likely that a broker will be able to recognise key traits that banks look for that these lending institutes will overlook in favour of receiving more in the form of interest.

What does this mean?

Consider it like this. If a doctor applies for a home loan, and doesn’t make it clear that they are a doctor from the offset, the chances are that they will be presented with a fairly generic lending option proposed by a bank. But if they work through a home loan broker that understands just how highly sought after doctors are – they can proceed with their application and potentially unlock a range of appealing borrowing options unavailable to others.

It’s not just doctors that can benefit either; in fact, anyone that can demonstrate a consistent earning pattern and a good credit score might be mistreated by a bank, but when their borrowing power is represented by a broker, they could go on to receive a much fairer deal on their mortgage than they would when going it alone.

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