If you're looking for a broker but don't have time for face-to-face meetings, an online mortgage broker could be the solution.
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. This can be a valuable service for people who are time-poor, or for those who live in rural or remote areas without easy access to mortgage brokers.
Online mortgage brokers comparison
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 to help you 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.
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 reach your broker from any location with internet access. This can valuable 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, online brokers may have a much wider reach than a bricks and mortar broker.
Unfortunately, there are some disadvantages to using an online mortgage broker, too.
- It can be difficult to determine whether the broker is reputable and experienced. 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.
- Some complex deals may require a face-to-face meeting. If your home loan needs are more complex, an online broker may not be an option.
Who should use an online mortgage broker?
An online mortgage broker can cater to all types of borrowers, including those looking to purchase a property with bad credit, 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.
Different types of loans
Mortgages come in many different forms. These include the introductory loan, which provides a low rate for up to one year. After one year, the rate returns to the normal standard variable 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 market conditions.
Fixed rate loans won’t fluctuate over the course of the agreed fixed term, but can also lack some of the features and flexibility common to variable rate products.
How to choose the right online mortgage broker
- Ask others. The safest way to choose an online mortgage broker is to be referred by someone you trust. 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.
- Contact the Mortgage and Finance Association of Australia or the Finance Brokers Association of Australia. These organisations are the representative bodies for the mortgage broking industry. By law, brokers have to be a member of at least one of the organisations. The MFAA and FBAA hold their members to codes of conduct and standards of practice. 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 who you feel confident in trusting with your financial information.