How Do Brokers Find Better Deals Than I Can Find Myself?

These days it appears simple to just search for home loan rates online. But there’s a lot more to a great home loan deal than the advertised rate alone.

So we’ve answered some of the common questions on the matter. Discover the true benefit in using a Loan Hero broker for your mortgage needs.

Q: Is using an Loan Hero broker better than an online search?

A: Yes. You’ll see a lot of products online with attractive rates, but they might not be flexible or even be suitable for your situation, plus most of the time you’re not even eligible for the rate listed.

Our brokers have access to industry specialised software that reduces the search process from hours down to minutes.

Q: How can a broker find a better deal than I can myself? What’s involved?

A: We chat to our customers to find out their particular needs and motivations, including factors they may not have initially considered important. Once we have that, our software lets us shortlist products by the necessary features, and will then rank them by the benefits and the lowest rates on offer.

A huge advantage is a Loan Hero broker can negotiate directly with the lenders. When we call on a customer’s behalf, the bank or lender knows we’ve got a multitude of options available and they need to be competitive by offering us the lowest interest rate possible for our customers. We also get discounts due to the sheer volume of loans we process. This is something they may not offer to an individual customer doing their own research.

If you already have a loan, you could save thousands by simply refinancing through Loan Hero, you can use our free 2 minute loan assessment quiz to see how much you can save.

We also examine products over a period of time, which means that all fees, initial and ongoing charges and mortgage insurance is taken into account, as well as those ‘honeymoon deals’ – which are rates that look attractive online, but might only last two or three years then revert to something much higher.

So, the cheapest rate might appear to be a really good deal right now, but not a great deal over the longer term.

Q: What makes a good home loan? Is it simply the lowest interest rate?

A: The right home loan is one that fits in with the customer’s needs: a competitive interest rate, particular loan features, the desired flexibility, and fits in with their employment situation and, importantly, their timeline. Some lenders are busy and might need three to four weeks to process a loan.

Q: An online search or speaking with my bank requires no commitment. Am I committed to a broker if they find me a deal?

A: We encourage people to explore their options and do their research and use Loan Hero as they need. We look at their entire situation and then present all the options available to them. There’s no commitment to accept and the customer is completely free to choose their preferred lender.

Q: Does involving a broker mean there’ll be additional expenses?

A: No, that’s a common misconception.

You get the choice of exactly the same products that are available from lenders, but sometimes with lower rates. Our remuneration comes from the lender – Loan Hero and our team of mortgage brokers get paid a commission by the lender when you receive your home loan. You don’t get charged a fee for your appointment or for our service.

Q: Is using a broker a good deal then?

A: Absolutely. Hands down it’s the service that makes a broker worthwhile – the ability to meet after hours, negotiate rates on your behalf, chat about contracts any time and save you time during all parts of the process.

Some lenders have great rates online, but you are responsible for the entire process, including submitting paperwork and understanding what needs to be provided. It can be very frustrating, time consuming and labour intensive without a broker.

Education is important too, sometimes we chat with people over many years to help them prepare until they’re ready to buy.

Q: Once the right deal has been found for me and the property has settled, will Loan Hero brokers still be helpful?

A: Yes. Your broker can keep you updated with relevant property related information and also help review your loan if there’s a change in circumstance, or perhaps the loan is no longer competitive.

We’ll continue to be there to make sure the customer’s still getting the right deal for them.

To see how much you could save on your mortgage through refinancing with Loan Hero, just take our free 2 minute quiz. + You’ll also get the option to speak to book a no-obligation phone chat with one of our friendly brokers to present all your options. Click here to take the quiz now.