Loans for House Purchase

When it comes to buying a house it can be a very stressful time. First you have to try and decide what price you can afford to pay, and then find a suitable house for the price and then perhaps most frustrating of all; you have to find someone that will loan you the money. To avoid most of this stress some people opt to use the services of a mortgage broker. Out what type of house you are looking for and will then find a suitable one available. They will also, having asked for your financial records, ascertain how much anyone is likely to loan you and thereby ensuring that the house they find fits into that price range. As the broker knows all the lending agencies, they are well aware of which one is most likely to afford you the loan under your circumstances and will then negotiate with the lender on your behalf. Obviously then, a broker can save you a lot of stress and leg work but in most countries the services of a mortgage broker would cost you but not in Australia. In Australia, unusually, it is the lender that will pay the broker’s fees which means that the buyer can receive a far less stressful experience at no extra cost to themselves and so that is why today, it is estimated that more than 50% of loans in Australia, are brokered through brokers. To cater to this growing need, brokers have become easy to find in Australia as all you now have to do is go to a website like to find one.

Obviously with the amount of advice that brokers are giving to such a large number of people, it is only right that they are regulated in some way and in this instance the brokers come under the regulatory powers of the Australian Securities and Investments Commission. For the safety of buyers, the commission hold brokers financially responsible for any bad advice they may give a buyer and so if it is shown that a buyer has to spend extra money because of bad advice given by a broker, the broker will have to reimburse that additional cost.

Mortgage brokers in Australia only came into existence in the 1980s and didn’t really get established until the 1990s but since then they have grown in importance greatly and the two main reasons for that are that firstly it is the lender that pays their fees and secondly, they are well regulated. Although over 50% of all loans are now facilitated by brokers; that percentage would probably be higher if all Australians knew that these types of brokers, despite their name, can assist with any type of loan including personal loans and business loans. A broker’s experience and knowledge of the lending system and the lenders can be of invaluable assistance to anyone seeking any type of loan and as it that assistance does not cost the borrower any extra; there is absolutely no reason why they should not seek a mortgage broker’s assistance.