According to a new survey into home buyer activity, the number of people who go straight to their existing financial institution rather than shopping around for a home loan is dropping, but probably not as much as you might think. The figures from CoreData Research on behalf of one of Mortgage Choice, a major Mortgage Broker, indicate that the proportion of consumers who went directly to their current financial institution for a mortgage has decreased from 60.7 percent to 44.2 percent.
Mortgage Broker usage
What might surprise many readers is the fact that this survey found that the percentage of homebuyers who went straight to an independent mortgage broker as their first source of a loan when looking to purchase a home or investment property has risen to 28 percent from 16 percent last year. It’s an improvement, but in our opinion still surprisingly low.
As recent figures have reminded us, the Banks have a tendency to offer their best deals to new customers rather than loyal long-term customers. So not asking an independent mortgage broker to source the best possible deals, even if it ends up being from your current Bank, can be a very expensive mistake.
How can a Mortgage Broker help?
Today’s competitive mortgage market can be a daunting place for those who are unfamiliar with the process of searching and applying for a home loan. Here at Ian Reid’s Vendor Advocacy, we have found that using an independent Mortgage Brokers can not only save a home byer time and unwanted stress, but a good broker will often be able to find you a loan that not only saves you interest, but also has the specific features that meet your individual requirements in facets such as offset accounts, extra repayments or reduced repayments if you have a change of circumstances.
In addition, a mortgage broker will be there to provide guidance and assistance during the loan application process, from the initial application through to approval and settlement day…a bit like one of our Advocates when you’re selling.
If you are wondering about finding the right home loan as part of a plan to sell and move on, don’t forget that our free booklet, Fatal Real Estate Traps Exposed, could save you a great deal of time, money and stress during the sales process. So why not download a copy while you’re here?