Recent estimates by the MFAA show that mortgage brokers are now responsible for arranging 4 out of 10 mortgages. That means a whopping 40% of all loans are originated by Brokers. So what exactly does a Mortgage Broker do? Well, a mortgage broker sits between the borrowers on one side and the money lenders on the other. Their job is to help you understand what loan product suits you out of the thousands of similar looking products available. But that’s not all. The best Mortgage Brokers will take the time to clarify and design a finance strategy with you and discuss how to move forward around those finance requirements.  Finally, after all that, a Mortgage Broker will assist you in applying for that loan.

The mortgage broker does receive a commission for such deals, but commissions are paid by the mortgage lenders, not by you, the borrower.

So why would you use the services of a mortgage broker? It’s simple, they know more about the financial world and can negotiate the obstacles a lot easier. The Mortgage Broker knows about the latest, cutting edge products and whether a low cost interest loan is going to suit you or whether a different approach to borrowing would bring better results longer term.

Remember, there is a  huge variety of products on the market at any given time. Having a Professional guide you through saves you, the Borrower, time and money in researching the market. I don’t know about you but I’d much rather spend my time doing things I enjoy.

Mortgage Brokers know how to compare all the different deals on offer and are able to assess which will meet the strategy you agree on. They can also help by eliminating the stress of completing the often confusing loan application form. And finally, because they know how the different mortgage lenders assess applications, they can save you a lot of time and emotional stress.

Sounds pretty good to me!

This article was written by Scott Whitford, General Manager of Investors Direct, an award winning Mortgage Company specialized in strategies and finance for residential property investors since 2001.  Investors Direct is the finalists in the 2008 Australian Mortgage Award for Brokerage of the Year (Over 12 Staff Category) & Best Customer Service from an Individual Office.