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Choosing the right mortgage for your new home build is one of the most important decisions you’ll have to make. There are hundreds of loans available, some more suitable than others, and cutting through the noise to find the right one can be a challenge.
If you want help navigating the system and figuring out what exactly you need, consulting a mortgage broker is a great idea. They can quickly and easily set you up with the lender who has the best product for you.
How a mortgage broker works
Mortgage brokers are a type of financial service that matches customers who need a mortgage with a suitable lender. Brokers usually deal with several lenders, gathering information on their home loan products into one place where they can help you access and sort through the options.
Your broker will begin by asking questions about your financial health and history, as well as the home you’re looking to build, and use that information to determine your borrowing capacity. Once they know what you need, they will compare mortgage products and find the one that’s right for you.
In most cases, a mortgage broker will be working with multiple lending institutions. The more lenders your broker has access to, the more likely you are to find a great deal, but we recommend doing some research of your own too. Your mortgage broker won’t have access to every loan product available, so it can still be worth shopping around and making sure it’s the best choice.
Building your first new home?
- You’ll have support along the way. A mortgage broker can walk you through the entire lending process, answering any questions you have and offering advice on the best loans and lenders for you. Some brokerages will even assist you with applying for loans and managing payment of the fees that a new mortgage will incur.
- They can do the heavy lifting for you. After speaking to a mortgage broker about your situation, they’ll research options on your behalf. Letting them help you sort through the huge number of loan products is a smart move, even for experienced borrowers. Keep in mind that brokers are typically paid by the lenders to sell their products, so make sure to do your own research and find out what alternatives might be available.
- Access to specialty lending products. Some lending products are only made available through brokers. If you have specific borrowing requirements, like needing a low deposit mortgage, then a broker who specialises in loans of that type may be able to find you a product you wouldn’t have access to otherwise.
- They can help you find the best deals. Signing up for a mortgage is a long-term decision, so it’s worth hunting for the best terms you can possibly get. Apart from selling special lending products, brokers may also have access to more favourable deals. If not, they will still be able to sort through a large number of choices and help you settle on the best deal available.