Using a broker to find the perfect loan in Australia
Using a broker is one of the simplest ways to find a loan that meets all of your needs while remaining affordable. Find out what advantages brokers offer you and what difference these advantages will make for you.
We all have different areas of expertise and interests; while some enjoy handling their finances others prefer to allow a professional to take the reins.
Financial decisions are great commitments that require a great deal of though and will end up laying a great deal of responsibility on your shoulders. Making such hefty decisions can be quite daunting and cause a lot of unneeded stress, especially if you have existing debts to think about.
This is exactly why brokers are such a godsend; they can help you find the perfect fit for your financial circumstances while taking all of your preferences into consideration. This article will discuss brokers and loan comparison sites to explain how they can help borrowers find the perfect loan for their financial needs.
Let a broker help you find the best loan for your needs
Not everyone is a financial savant so choosing the perfect loan for your situation can be a daunting task, especially if you are already stressed out about your financial circumstances. If you have bad credit or lack a credit history, using a broker will greatly improve your chances of approval.
Getting approved for a loan in such circumstances is very difficult. This is why there are professionals, like brokers, who are prepared to take the task off your hands and do all the legwork on your behalf. Brokers act as middlemen between borrowers and lenders. They are firms who negotiate with the lending firm on behalf of the borrower to establish the best possible deal for the borrower.
What’s the difference between a lender & a broker?
Applying for a loan through a broker is similar to applying directly to a lender. Most of the applications can also be completed online, making the process convenient and more efficient. The application is then assessed by the broker and the criteria are assessed against the trusted board of lenders the broker collaborates with.
Once the broker has chosen an ideal lender, they will get into contact with the prospective borrower so they can decide whether or not they are satisfied with the deal. If the borrower is satisfied, the broker will then pass the case to the chosen lender and the borrower will be on the way to receiving their money.
Using a broker will allow you to access better deals
Online applications allow the borrower to remain informed throughout the process so that they can access funds faster than through traditional application processes. By allowing the broker to take over the entire process, the borrower is often able to obtain a better deal than they would have if they applied directly to the lender.
This is because the broker knows which lenders are the more appropriate match for the borrower’s financial position and needs. Since the broker deals with the same lenders daily, they also become aware of any special deals that lenders might have at the time of application.
Not only do brokers alleviate stress by doing all the groundwork, but they also save the borrower large sums of money and time.
How much will a broker charge me?
Most brokers do not charge a fee to the borrower for services rendered. This is because the broker receives a commission from the lender they arranged the loan with. Save yourself the stress, money and time and allow the broker to arrange your loan for you.
Benefits of using a broker:
- Access multiple loans and offers.
- Avoid making multiple loan applications.
- Protect your credit score.
- Save time by making only one loan application.
- Ensure approval if you have a low credit rating.
- Access better interest rates and fees.
- Brokers do not charge customers for their services.
Using loan comparison sites to find the perfect loan yourself
If you prefer to be in control of your finances then there are ways that you can make the search easier. When you embark on your quest for the perfect loan, loan comparison sites should be the first place that you start searching. Loan comparison sites are available to do exactly as the name suggests: compare loans.
The borrower will be able to find a variety of lenders trusted by the loan comparison site along with their corresponding personal loans. Each of these lenders has been selected because they are trusted by brokers and fellow Aussies alike.
The loans are compared in terms of interest rates, monthly repayments and loan periods which allow for an informed choice to be made. This way the borrower will be able to find the loan that is the most affordable and suitable for their available budget from a range of trustworthy lenders.
Using online loan calculators to your advantage
Loan comparison sites also often have loan calculators available which the borrower can use to calculate their ideal monthly repayment amount before exploring the different loan options.
In this way, the borrower will be able to determine the maximum amount they can repay on a loan as per their budget and use this to discover the loan amount that they can qualify for.
Understanding your financial position before applying for credit
The borrower needs to have an understanding of their financial situation before deciding to take out a loan. The better you understand your financial past and present, the easier it will be to plot the best course forward.
This does not only mean knowing what loans and credit options you have and are able to access but also laying out financial goals to ensure you improve your finances and start paying off debt and building up savings.
While loans can be daunting, they do not have to be stressful. With the assistance of brokers, loan comparison sites and nifty tools like loan calculators, getting the finance you need is a breeze. Avoid the sleepless nights and contact a broker; sit back and allow them to get your finances in order.