Why use a Davies Home Loans mortgage broker?
Mortgage Broking works for you, not the banks. Davies Home Loans Mortgage Brokers go in to bat for you to get the right mortgage.
So what exactly is mortgage broking?
There are literally hundreds of different loan products available right now. While this makes it harder for you to choose the right loan, it does mean that there’s an ideal lending solution for you out there. It’s just a matter of finding it. And that’s where a mortgage broking comes in.
We shop around for a loan that’s right for you and your circumstances. You could be a first home-buyer, looking to re-finance, building your investments or looking for a competitive commercial finance product. We have access to over 1450 different loan products and we stay up to date with the constant changes and new products. This not only means we can go in to bat for you and match you with the right solution, but we can also negotiate great rates on your behalf.
How much does it cost?
With a Davies Home Loans mortgage broker you don’t pay us a fee, nothing, zero, zilch.
This is best explained by looking at how bank branches do loan. With a branch loan, you meet a loan officer that does all the paperwork, the loan officer is paid a salary for doing this work. The bank also has to pay the loan officer’s annual leave, sick leave, provide a uniform, desk, computer etc, and cover the cost of the building they sit in, its insurance, rates, electricity etc. These costs are taken into account in the interest rate. Banks typically work loan officers to their maximum, so to get an extra customer may mean hiring an extra loan officer. For banks it is cheaper to outsource the overflow work to contractors (mortgage brokers), like us. So when we travel to you and do your loan preparation paperwork and follow ups, the bank saves pays us instead.
When’s the best time to use a broker?
Whatever part of the loan process you’re at, and whatever type of loan you’re looking for, we can help. It doesn’t matter if you’ve just started thinking about buying, have already found the perfect house and want to quickly sort out your finance, are looking to unlock the equity in your current property, or are wanting to find out if there’s a better borrowing option than the one you currently have – any time is a good time to explore your options. But we recommend at least 3 months prior to making an offer on a home, you need to talk to our Gold Coast Mortgage Broker or our Northern Rivers Mortgage Broker so they can update you on what the banks are looking for.
The first thing we do is to meet you and understand what it is you want. We are, after all, your personal finance professional, so the better we get to know you, your financial circumstances and long term goals, the better we can match the right product with you.
It’s not just about finding the lowest interest rate – there are other things to consider. For example, if you’re thinking about starting a family, flexibility is an important feature. Or if you want to renovate, easy access to equity can help. With so many products, you have so many choices.
Once we agree on the right loan, we take care of the application and get everything in place for the approval process, then see it through to settlement.
Why not just go to a bank?
Firstly, it’s hard for most people to choose. Which bank? Which product? What about building societies and credit unions?
There are a lot of options out there, and with the Reserve Bank moving official interest rates and banks moving them independently, it’s an ever-changing market. Not to mention all the new products that are constantly being introduced.
With choice comes complexity. It can get tricky to navigate through it all. And it can take a lot of your time (and sanity sometimes too). A mortgage broker will steer you through this to find the loan that suits your needs and not the banks. We then deal with the lender and manage your application process through to approval.
In the simplest terms, a mortgage broker makes it easy – saving you time and, hopefully, a lot of money.
Let’s keep Mortgage Broking simple.
We start by meeting you at a time and place that suits you – at home, at work or over a coffee; during the week, at night or over the weekend – we’re always flexible. We’ll look at your current loans and financial circumstances and then research and find the right solution for you. We take care of the paperwork, manage the application process and then take it through to settlement.
We can get things moving quickly. We’ll work with our lender networks and contacts, securing your finance as fast as possible.
It’s more than just loans.
Lenders will ask you to take out insurance on your new property. We can help you arrange cover to keep the approval process moving quickly and hopefully save you some money.
It’s all about you.
We work for you and not the bank. We get to know you personally to understand your unique circumstances. From our experience we know which lenders will have the product that will meet your needs. And we negotiate for what’s right for you, not what’s right for the lenders.
To arrange a meeting please call us today on 1300396220.
History of Mortgage Broking
The modern history of the Australian mortgage lending industry can be said to have had its genesis in the deregulation of the financial system in the early 1980s.
From that event a number of cause-and-effects flowed:
Non banks (mortgage managers) entered the mortgage market with interest rates well below those being offered by banks and eventually established a market share of about 15%.
Banks reduced their interest rates in order to compete and commenced internal operational reviews, which resulted in some 2000 branches being closed and many mortgage lending officers/bank managers being retrenched. Entrepreneurial and consumer centric operators sensed the pent up demand of consumers for nimble businesses which could best represent their borrowing interests. Thus mortgage broking and ‘mortgage brokers’ as we now know them, established themselves.
Smaller lenders with limited branch infrastructures started using mortgage broking to distribute their products in order to compete with non bank lenders and the larger banks, utilising a willing and competent workforce made available by bank retrenchments.
The so-called ‘boom’ of the late 90s and the early part of this decade, with massive interest by consumers in borrowing or refinancing (because of favourable finance and economic conditions), and a vast array of new mortgage products on the market, provided a perfect environment for consumers to realise the benefits of dealing with a mortgage broking person.
The larger banks, one by one, then joined in establishing third party (broker) sales operations. By January 2002 mortgage brokers had established a retail market share in the mortgage market of around 18%, which had increased to close to 40% by 2007 and nearly 55% by 2016. People who don’t use mortgage broking to help them are now in the minority.