Why use a mortgage adviser?

If you’re thinking about mortgages, your first instinct might be to go to your bank – but many forget that mortgage advisers are an ideal way to use lenders and get the best possible rates.

We wanted to demystify mortgage advisers and show what they can do for your lending, so we chatted with Kaushik Gorasia from MTF Finance Botany, a Financial Adviser who has been giving qualified mortgage advice for the last two decades.

What is a mortgage adviser? And what does an adviser do?

In brief, a mortgage adviser is a professional who acts as an intermediary between you and lenders like banks and other financial institutions. “Essentially, they smooth the path between banks and each client, and ensure that the client finds the best fit for their situation” explains Kaushik.

Advisers meet clients where they’re at – and figure out what will work best for their situation. It starts with looking at rates and working out repayment structures, but they can also help with so much more.

“Today, advisers also provide financial advice. It’s not just ‘I’ll sort the paperwork’ with the bank! We often do a lot of fact-finding, and help buyers spot the risks and rewards, especially of their first homes. Great advisers will provide excellent tailored solutions and work with their clients to make the right decision for their needs – including the best rates and payment terms.”

An adviser can help you with any type of loan, whether you are re-fixing, buying a first home, investing, or refinancing – all of which have specific lenders with better terms.

We often do a lot of fact-finding, and help buyers spot the risks and rewards, especially of their first homes.

Why is an adviser better than a bank?

Major banks have built a good reputation over the years, and that can make them seem like an obvious starting point.

But let’s say you approach your bank and ask them about buying a property. They’ll put you in touch with their qualified advisers, but they are restricted only to considering that particular bank’s products.

Mortgage advisers are independent, which means they can shop around on your behalf, and make sure you’re looked after. And that’s also a big help if you’re not sitting on a 20 percent deposit or have non-salaried income – which can be a turn-off for the banks. An adviser can also save you time and money by doing the research and comparison for you, and with a wider range of lenders on tap, that means a better selection of loan features and conditions too.

“An adviser today might have access to 30 or 40 lenders, including major banks and non-banking lenders,” says Kaushik. “Which means more options for clients who deserve a bit of choice with their money and the market. Plus, the advice is free, since the bank is the one who pays for it.”

Impartial advice, the power of negotiation, and a better range of deals on offer are making mortgage advisers a pretty attractive option for people looking to start or manage their home loans.

What kinds of loans can mortgage advisers help with?

The short answer? All kinds, and for all sorts of working and personal situations. Here’s just a few:

• Re-fixing or refinancing: If you’re changing the interest rate or term, find better deals, access your equity, and save money – while also avoiding break fees or penalties – then an adviser can help make changes to your loan.
• First-timers: Advisers can guide you through the difficult market-entry process and help you access grants or schemes that work to your advantage. Especially if your income and lifestyle (e.g. as a sole trader or self-employed) make it harder for you to otherwise get approved for a loan (or mean you face a higher interest rate).
• Investing: Maximise your returns and minimise your risks by finding the most suitable loan for your strategy and cash flow – while also negotiating the tax implications and other aspects of investment.

Finding the right adviser for you

Using an adviser can be a great way to find the best loan for your situation, but not all advisers are created equal.

As Kaushik explains, “The new compliance and regulation rules around financial advice means that any adviser must conform to current legislation. Not only does that mean they’re adhering to the rules, but they’ll also be doing right by their clients.” That means things like a Certificate in Financial Services Level 5 or above, some proof that they’re being proactive about the latest regulatory changes, and evidence that an adviser specialises in the kind of loan you’re after (e.g. investment, residential, etc.).

And of course, a good recommendation goes a long way – so trust ‘word of mouth’ and look at reviews online to find a good fit.