As of January 2019, brokers settled 59.1% of residential home loans in Australia, according to market share data sourced by the MFAA. Why do so many Australians use one?

• They can help pair a consumer with a home loan product and lender to best meet their needs
• They can be a valuable source of education and advice for consumers who need to navigate the often-overwhelming complexities of the home loan process
• They have the potential to introduce customers to more affordable products in some circumstances, on account of their reading of the market; they can also empower customers to bargain more confidently with lenders

In the majority of cases, a consumer’s access to a broker service is free of charge.

There’s often a difference between how much you can borrow and how much you should borrow.

A mortgage broker is required to make sure that they arrange a loan that suits your current and future financial circumstances, rather than simply encouraging you to borrow as much as possible.

They will also factor in your ability to repay your loan if interest rates rise.

Fixed rate, variable and split home loans all have their own benefits but also considerations you’ll need to take into account.

So how do you work out which is right for you?

When you take out a home loan, you usually have the choice of fixing your interest rate, taking out a variable interest rate or even combining the two into a split rate loan.

Choosing which one could be right for you comes down to weighing up which you value more in your home loan: flexibility or stability, or whether you’d like a little of both.

A pre-approval gives you an indication of the maximum amount you can borrow. By getting your pre-approval you have the power to negotiate with confidence.

Pre-approvals are usually valid from between three to six months. If your pre-approval expires before you find a property then we can generally apply for an extension.