Don’t navigate the overwhelming task of finding the perfect mortgage on your own; mortgage brokers can be your guide.
Mortgage brokers can be a great help when seeking a home loan as they act as a liaison between you and lenders to help to find the most suitable loan for your financial wants and needs when it comes to buying your dream home.
Online mortgage brokers can be found from the comfort of your own home, and you can communicate with them online or over the phone at whatever time you please. You can set up an appointment to speak with a broker via the website, and you can download information in regards to the banks and other lenders that the broker works with.
Online mortgage brokers comparison
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Aussie Home Loans
Aussie is one of Australia's leading financial service providers, having won The Adviser’s Top Mortgage Broker award for the last 3 years. They charge no appointment fees and can meet at a time and place which suits you.
Online Home Loans
Online Home Loans is a mortgage broker service designed to help Australian borrowers find the right home loan – and do it all online.
What is an online mortgage broker?
An online mortgage broker is a broker operating on the internet. They might use a combination of video and regular phone calls, the post and come to you in order to allow you to discuss your options, fill out applications, get quotes, pay fees, and even manage your account. The benefit of the online realm is that it can be accessed at any time and from anywhere. You may be asked to upload any relevant documents in regards to your finances, assets, expenses, and anything else pertaining to your loan and send them to your broker or lender rather than go into a branch or broker office yourself.
Online mortgage brokers are very similar to bricks and mortar brokers; they communicate with banks and lending institutions, but online brokers do so on the web and through their website. They’ll usually have a significant online presence in order to do this.
The pros and cons of using an online mortgage broker
There are a range of reasons why using an online mortgage broker is advantageous.
- You can always access your broker from any location with internet access. This can be greatly preferred, especially for those who are physically unable to visit an office, or those who travel frequently for business. It's also a great choice for families who just don't have the time to visit an in-person broker with children in tow.
- Visiting an online broker can also sometimes save you a great deal of money. In some cases, they may have a much wider reach than a bricks and mortar broker, perhaps as a result of working online, perhaps simply from extra networking. Further, by using an online broker, you have the entire internet at your fingertips to help you to research and verify that you are getting a good deal.
Unfortunately, there are some disadvantages to using an online mortgage broker, too.
- It can be difficult to detect who exactly is reputable, and who isn't reputable. You should have an understanding of how to detect scam sites. It can be helpful to search for the mortgage broker's information elsewhere on the web; typically, you will find little to no info on scammers, whereas reviews, listings, and information will exist about legitimate brokers. Always verify that the broker has a telephone number and mailing address on their website. This will help you to stay safe.
- It can also be difficult to judge exactly what a good deal consists of when using an online broker. If you do your research on mortgages before you start looking, you'll boost your chances of winning an excellent deal.
Who should use an online mortgage broker?
An online mortgage broker will apply to almost all Australians looking for a loan. They can cater to all types of borrowers, including those looking to purchase a property with bad credit, or those looking to buy property through their SMSFs or those looking to buy commercial property. The main difference is that you might not be able to meet them face-to-face, which might be a requirement for some borrowers.
You should source out online mortgage brokers, and attempt to get a quote before you agree with any terms. From there, thoroughly research the loan and ensure that it matches your expectations. If you aren't sure if the deal is a good one, call a local broker and ask for a similar quote over the telephone. They will generally be able to provide you with an average quote.
Different types of loans
Mortgages come in many different forms. These forms include the introductory loan, which provides a low rate for up to one year. After one year, the rate returns to the normal daily rate which can be much higher. This type of loan can be beneficial for those who are starting their home owning journey. However, the increase in rate can be dramatic, and you should be cautious of this.
Variable rate loans vary in rate according to the movements of the official cash rate, and are usually dependent on the rate assigned by a bank or lender. This can vary from day to day, month to month, or even year to year.
Fixed rate loans are popular too, mostly because a fixed rate won’t fluctuate over the course of the agreed fixed term. The only way to change a fixed rate is to renegotiate the rate with your lender.
What do lenders usually look at?
There are several aspects of your credit file that an online mortgage broker or lender will look at when matching you to a potential loan. Most of these loans require good credit; bad credit or a history of bankruptcies, or even a long list of recent unpaid debts, can jeopardise your ability to get a mortgage. In saying that, a good mortgage broker will have lenders who specialise in bad credit loans on their panel.
Your lender will investigate your credit record. It’s recommended that you contact one of the three major credit bureaus to review your report before you apply for a mortgage. Veda, D&B, and Experian can all provide you with a copy of your credit report. If there are errors on your credit, it’s best to correct them as they may lead to rejections.
Lenders will also verify that you have a stable income of a high enough amount to be able to make payments on time. This may include verifying your employment or income source, and may also include verifying credit card accounts, bank accounts, and residence information.
While this may seem like a privacy intrusion, it helps the lender to judge how much of a risk you are to lend to. Positive results will mean lower rates and better offers.
How to choose the right online mortgage broker
- Ask others. The safest way to choose an online mortgage broker is to seek out brokers who have provided successful mortgages for other individuals. Start by asking around; word of mouth is a surprisingly effective way to find great services. If you don't have word of mouth to go on, research the broker online.
- Try to stick with reputable mortgage lenders whenever possible. If the company is well-known, you stand a better chance of walking away satisfied, as they have proven their ability to provide a satisfactory outcome. New mortgage brokers may or may not be great at what they do. It can be difficult to figure out whether or not they are professional and knowledgeable enough to be of assistance.
- Contact the Mortgage and Finance Association of Australia. This organisation provides oversight to brokers, banks, and financial lending companies all across the country. They can often verify whether an online mortgage broker is legitimate. They can also help to direct you to a broker who is able to provide you with the services you need.
Choosing an online mortgage broker can be a great way to access lending services, but it is important that you research your broker carefully. With a little effort, you'll come out with a great rate or deal from a broker that you feel confident in trusting with your financial information.