MORTGAGE brokers have helped save Australian consumers billions of dollars over the past two decades by keeping the banks honest, says 1300HomeLoan managing director John Kolenda.
The managing director of mortgage broker network 1300HomeLoan said the growth of the mortgage broking industry in Australia has ensured healthy home loan competition.
"Brokers save consumers hundreds of millions each year by finding their clients the most competitive home loan product," Mr Kolenda said.
"Over the past two decades they've saved mortgage holders billions of dollars.
"Almost 50 per cent of Australian home loans are written by brokers and they help consumers benefit from lower interest rates and long term savings on their mortgages.
"Through effectively forcing competition among lenders for your business they have put pressure on interest rates and kept the banks honest."
Mr Kolenda said brokers have extensive experience and detailed knowledge of the myriad of home loan products.
"They are highly regulated by the Australian Securities and Investment Commission (ASIC) and provide consumers both with lender options and interest rates that meet their needs," he said.
"Brokers understand lenders policies and tailor solutions for consumers that help them get loan approval at the best interest rate.
"They also know which lenders support small businesses with loan products, which lenders have first home buyer products at the best rates and which lenders do construction loans and self-managed superannuation fund solutions.
"Getting the right home loan and the best rate can be very daunting and meeting lender criteria is even more complex. Understanding all the government costs as well as the fees and charges, overlayed with specific policy requirements can be a confusing maze.
"But brokers have been crucial in guiding consumers through that maze."
Mr Kolenda said while consumers might be offered discounted variable or fixed home loan interest rates dealing directly with their lender, brokers have negotiated even better discounts.
"It also doesn't cost consumers more to go through a broker versus going direct to a bank. Brokers negotiate better deals and ensure competition."