The home loan market can be a complicated and confusing place. There are so many different features and products that can leave you scratching your head.
That’s where mortgage brokers come in promoting themselves as the best option to understand all the products and find the right one for you.
In the past twenty years, technology has advanced and Consumers can now do their own research.
They can do this from their mobile devices, using tools such as home loan calculators to do the work for them. Technology advances mean that consumers have other transparent options rather than just going to a mortgage broker to find out more information on better home loan rates available in the market place.
Does this sound like you? Perhaps you don’t need a mortgage broker?
Are Mortgage Brokers Necessary?
Home loan lending need not always be done with Commonwealth Bank, Bank SA, Aussie Home Loans and ANZ.
Mortgage brokers may find you a seemingly decent rate, but do they get the banks competing against one another like Joust does?
These four topics may be good reasons to reconsider using a mortgage broker.
1. Convenience and Simplicity
Refinancing or getting the best home loan rates could not be easier in 2017. In years gone by, you would organise meetings with different banks to find the best home loan rates.
You would meet the bank manager, take all the pamphlets, go away, think about it, read other advertisements, check newspapers, television and the Internet. Then repeat the process for all the other banks.
Now with Joust, you can go online and start the process of getting a better home loan interest rate in 3 minutes. You can do this from a computer, phone or tablet. You don’t have to leave the house, or use a mortgage broker.
Our lending partners challenge each other, bidding for your business. You set the time limit. Jousts can be as short as 24 hours, or as long as 3 days. The lenders then bid with their best interest rates to win the right for your home loan business.
At the end of the Joust, you get to choose between all the bids shown on your leaderboard ranked in order of lowest comparison rate. If you accept a bid, you give the lender permission to contact you and organise a meeting.
Jousts can finish in as little as 24 hours without having to set up one meeting or even leaving the house.
2. Be Your Own Expert
Do you think the home loan market sounds too complicated? Luckily, so do other people. That’s why there are many websites that can help with research.
Just as websites like realestate.com.au can give you the exact amount you will have to pay for your home, many websites now have a home loan calculator to help educate their customers. With these tools, you can see the benefit of refinancing to get a better home loan rate.
Who needs to pay for an expert when you can be your own expert? With so much information freely available, it means you can educate yourself and remove the need for advice from an accountant or mortgage broker. This allows lenders to be more competitive with their offers by offering discounts to customers rather than paying high broker costs.
As a confident and competent consumer using Joust, you are saving the bank's time and money which can then be passed on to you through discounts in their home loan interest rate bids.
3. Brokers Take Commission
When using a mortgage broker, banks have to pay them high up front fees and a trailing commission that is paid annually. The lender often has to keep paying the mortgage broker a commission each year the loan continues. If the home loan is for 30 years, this can add up to be a very large amount.
By removing the mortgage broker and using Joust this means there is no trailing commission. Joust does not take any trailing commission, therefore banks can pass these savings on to you.
4. Banks Can Now Find Customers Without A Broker
Our lenders want to find customers. Lenders spend millions of dollars on infrastructures, staff, branches and advertising to try and find you.
Joust creates a competitive marketplace for potential lenders to bid live on a platform for your business. Joust is a matchmaking tool with the main purpose of connecting good consumers with lenders who will bid with their best home loan rates.
Joust acts as a home loan market place and a home loan calculator for the consumer and the lender. Lenders can calculate how attractive your home loan is based on your:
- Requested loan amount
- Existing equity/deposit
- Equifax credit score
- Postcode of your property
- Year of birth
If you have an attractive profile for lenders then you are more likely to be offered a discounted home loan rate.
Joust saves our lenders time and money by finding customers who fit their marketing and growth strategies all in one place. This creates competitive pressure between the bidders. The advantage is with the consumers. You make the rules and reap the benefits.
Are You Ready?
For some consumers, with complex needs, advice is necessary. Some consumers need an expert opinion and guidance. A home loan is a big decision and bank managers, accountants and mortgage brokers can provide valuable advice and guidance if your situation is complicated.
If you’re a confident consumer and are interested in independently learning more, discover how Joust can help get you a better rate on your home loan.