When it comes to taking out a home loan, all the options can be overwhelming. Should you go with a Big Four bank or a lender that’s less known? Is it best to choose a variable home loan or a fixed-rate loan in today’s lending environment?

With so many questions to ponder, it’s little wonder why more Australians than ever are choosing to use a mortgage broker.

The mortgage broker market share hit a record high of 76 per cent in the December quarter. That’s right – three in four borrowers now use a mortgage broker to help them navigate the home loan application and approval process.

Here are some compelling reasons why Aussies are placing their trust in the expertise of their brokers, rather than going direct to a lender.

Maximise your borrowing power

Different lenders have different lending criteria, so the amount one bank will lend you may vary considerably compared to a competitor. Mortgage brokers understand the nuances between lenders and their home loan products.

If you want to maximise your borrowing power or you have a complex financial situation (for example, you’re self-employed), a mortgage broker can help get you over the line with finance.

Options that work for you

Mortgage brokers work with a wide range of lenders, giving you access to many different home loan products. A broker will take the time to understand your specific financial situation and goals, then recommend a home loan that suits your needs.

A bank, on the other hand, is solely interested in getting your business.

Access to special offers

Some lenders offer special home loans or products based on your profession. If you’re a teacher or a doctor or you’re self-employed, for example, your broker could line you up with a lender that may have special offers for you.

Brokers may also be able to negotiate a more competitive interest rate or loan terms on your behalf. However, if you went direct to the bank yourself, you’d be the one doing the negotiating.

Brokers have your back

A broker is bound by a Best Interests Duty, meaning they are legally obliged to put your interests first. That means providing home loan options that are based on your unique circumstances and goals.

Someone to do the legwork for you

For many borrowers, having someone to walk them through the pre-approval and home loan application process is invaluable. Your broker will take care of the paperwork and optimise your chances of a successful home loan application.

A mortgage broker can also answer questions at any point in the home loan journey – whether you’re curious to know what your borrowing capacity is, or you want to evaluate your home loan 12 months after settlement.

Ready to chat about your finance needs?

For most people, buying a property is the biggest financial decision of their life. You want to get it right.

Using a mortgage broker makes the process smoother and more efficient, while also potentially saving you time and money.

To explore your borrowing capacity, organise pre-approval or to review your current home loan, get in touch today and discover why three in four Aussies use a broker.

If you’re looking to buy a property, it’s important to remember that your gambling habits could be taken into account when you apply for a home loan.

Your lender will look at any track record of gambling when assessing your financial situation and ability to repay the mortgage.

Not only could gambling jeopardise your chances of being approved for a loan, but it could also impact your ability to refinance down the track.

Understanding the process

When you apply for a home loan, your lender will do an affordability assessment. As part of this, they’ll assess your income (from all sources) against your outgoings (your regular expenses). They’ll also likely check your credit score.

If a lender sees evidence of regular gambling transactions as part of your expenses, it may be a red flag. They’ll look at how much money you’re gambling, how frequently you’re betting and what type of gambling you’re participating in.

If it’s a small amount you’re gambling relatively infrequently for leisure, it probably won’t raise any alarm bells with the lender. The occasional Powerball ticket, for example, will be considered harmless. However, if it’s an ongoing habit that’s getting out of control, it could limit your ability to secure finance.

How to turn things around

There are steps you can take to try to maximise your chances of getting approved for a home loan if you do have a history of gambling.

• Domino your debts: Paying off your debts – whether it be credit card debt, car loan or personal loans – is a good place to start, as it shows you are able to manage your finances effectively.
• Budget and save: A strong track record of saving will go down well with lenders. Keep putting money aside regularly and grow your savings nest egg.
• Boost your credit score: You can access your credit score and credit report for free every few months. If you notice any errors in the report, contact the credit provider. The government’s moneysmart website offers tips on how to improve your credit score, such as lowering your credit card limit, paying your utility bills on time and keeping on top of credit card repayments.
• Stop gambling: If you think your gambling may jeopardise your home loan application, try to reduce or quit gambling.

Seeking help

There are many resources available to help you tackle a gambling addiction. GambleAware offers tools and support for those who are looking to stop gambling. The site includes a gambling assessment to see how the habit may be impacting your life, as well as research and links to gambling support groups.

You can also get immediate support from Gambling Help Online on 1800 858 858. It’s free and confidential. Other options can be found on the Health Direct website.

Like to talk through your finance options?

If you’d like to know more about how your gambling habit may affect your home loan application, we’re here to answer your questions.

Talk to us confidentially about your financial situation and we’ll help you work towards getting the finance you need.