If you are contemplating getting a loan to buy a home, there are some phrases that you may not know but which you should perhaps learn, prior to visiting a lending agency. Some of these phrases include an offset account, a redraw facility and debt consolidation. These are terms which we may never have come across before if we haven’t previously bought a house but are ones that we should certainly know about before we sit in a room with a lender. Of course though, if we have sought the assistance of a mortgage broker, it will be them that are sat in the room with the lenders not us and the brokers, due to their experience, know these terms and can explain them to us afterwards. Basically an offset account is an account that you can have and as you make deposits, they are automatically used to reduce the interest on your loan. A withdraw facility is a facility that allows you to withdraw any extra payments that you have made and a debt consolidation is a matter of combining all the debts that you may have and placing them all in one loan. Although it is easy to see that each of these different features can have advantages but they can each also have disadvantages and so it are those disadvantages that you would want to understand. As mentioned though, a mortgage broker could explain all the advantages and disadvantages of each and others and so the services of a broker are very beneficial. Although apart from helping with the meanings in the small print, mortgage brokers also save a buyer a lot of hassle by not only finding a suitable house for them to buy but also finding a lending establishment that will afford the loan, not everybody uses broker services. In many countries, it is the buyer that has to pay the broker fees and so that is perhaps the reason not everybody affords themselves of their services but in Australia, things are different as there it is the lender that pays the broker’s fees.
As more and more Australians are starting to realize this, brokers are becoming more popular in Australia, so much so in fact that it could not be easier to find a choice Mortgage broker Melbourne or anywhere else in Australia, as all you have to now do, is go to the internet. The word about who pays the broker is certainly spreading as today, it is estimated that 50% of all loans given in Australia are provided with the assistance of a broker. This percentage could rise still further as people realize that despite their name, mortgage brokers can assist with any type of loans, not just loans for houses, they can also assist with a business loan or even a personal loan. With no extra costs applied to the buyers, having the experience and expertise of a broker to assist in getting you a loan, can be very beneficial and also facilitate the loan a lot quicker.