More and more homebuyers are turning to mortgage brokers for help with their home purchases, according to the Mortgage & Finance Association (MFAA).

Their market share data shows that brokers originated 71.8% of all new home loans in the final quarter of 2023 – a new record.

Brokers aren’t just writing more loans; the value of loans written also rose, growing 5.0% over the 2023 calendar year to $94.06 billion. 

This, in turn, begs the question: why are buyers increasingly opting for brokers rather than going directly to the lender?

Advantages of using a broker

Brokers offer several advantages. 

Unlike lenders – who only recommend their own products – brokers help you compare a wide range of loan options, including those from big banks, challenger banks, credit unions, and non-bank lenders. This increases your chances of finding an interest rate and loan terms that suit your financial situation and long-term goals.

This gives you more options, increasing the chance of finding an interest rate and loan terms suitable to your financial situation and long-term goals.

Best Interests Duty

To support this, mortgage brokers are bound by Best Interest Duty (BID). 

These regulations require brokers to always act in the best interests of their clients and prioritise the consumer if there are any potential conflicts of interest. 

While brokers are legally required to prioritise your best interests, banks and other lenders are not. This means they will recommend their own loan products even if better options are available elsewhere.

Expertise

Brokers also act as guides throughout the entire home loan process. This includes explaining any terms you may be unfamiliar with and handling much of the legwork, saving you time and effort.

Brokers can also negotiate on your behalf, using their relationships with lenders to secure more favourable terms, potentially saving you money over the life of your loan.

Personalised service

Brokers provide personalised service tailored to your needs. There is no one-size-fits-all approach. Instead, they take the time to understand your financial goals and risk tolerance, ensuring the loan you get aligns with your plans.

Overall, brokers offer a wider range of options, expert guidance, streamlined processes, negotiation power, and personalised service. They help clients feel confident and informed throughout the entire process.

Looking to secure finance to buy property? As an award-winning mortgage broker in Sydney with over 390 five-star Google reviews, Eventus Financial can help. Schedule a no-obligation consultation with Alex to get started.