How a mortgage broker can help you refinance your home loan

Thinking of refinancing? You’re not alone. The high cost of living has got many borrowers rethinking their home loan rates, features, and commitments, and seeking better options. 

But while refinancing may feel like a daunting task, you could have an unexpected ally: a mortgage broker. Acting as a go-between for lenders and borrowers, a mortgage broker can help you sort through choices tailored to your situation, advise you, and even apply for loans on your behalf.

There are many good reasons why you might use a mortgage broker’s service to help you, but there’s a lot to consider. So let’s dig into what you need to know about using a mortgage broker and how they could help you compare home loans.

A mortgage broker can help borrowers arrange home loans through banks and lending institutions. 

They are supposed to act in your best interest, providing you with tailored home loan options, advice, and assistance that suits your wants and needs. 

Some things a mortgage broker can help you with include:

• Clarifying your needs and goals with a home loan and property.
• Calculating how much you can afford to borrow. 
• Comparing home loan options best suited for you.
• Walking you through how each home loan works, plus associated costs like interest, fees, and features. 
• Applying for a home loan on your behalf and overseeing the settlement process. 

Talk to a mortgage broker 

When meeting with a mortgage broker, it’s vital to prepare questions to ask so you can get the most out of the experience. 

Important questions to ask your mortgage broker can include:

• Which types of home loans do you offer? If you’re looking for a certain type of loan, such as a fixed rate, variable, interest-only, investment, green, etc., it’s important to work with a broker who can match you with these options.
  
• Which lenders do you work with? This can give you an idea of the variety of home loan offers you can compare. 
  
• How do you determine which home loan is best for me? A good mortgage broker will walk you through their comparison process and explain why they will recommend certain loans.
  
• What fees will I have to pay during the home loan process? If your broker or the lender they apply to charges a fee, you need to know upfront. 

You can also ask them questions about how they deal with clients, including their level of industry experience, the success rate for mortgage applications, and how long the process usually takes. If you want, ask for references from previous clients. 

You should also check in with how they plan to keep you in the loop throughout the process, step-by-step – be wary of a broker who tells you the process is completely hands-free. 

Most home loan providers will have in-house home loan lending experts that you can talk to directly without having to go through a mortgage broker if you choose. There are also a number of banks that do not deal with mortgage brokers and you may find that the deals offered by these banks are more suitable for your needs. Below are some current home loan deals that are not available via broker channels or head to our hub to compare all home loans in the Mozo database.