A common question we constantly get asked is, what’s the difference between a real estate agent and a mortgage broker and what do they do? For new investors or first time property buyers who are new to the game, this is a very valid question to ask.

Real Estate Agents

Real estate agents are licenced specialists who represent buyers and sellers in the exchange of property transactions. Think of them as the middle man between the buyer and the seller, who takes care of all the leg work- marketing, contracts and the auctioning process. Most real estate agents work independently or for a licenced retailer, who provides supplementary training and certification to their employees. Most real estate agents work on a commission base, which means their wages are set by their ability to close a certain amount of transactions per quota.

Their role goes even further depending on who they represent, the buyer or the seller. Real estate agents who represent the seller, typically advise them on how to price their property compared to the market and how to prepare it for sale. On the other hand, real estate agents who represent the buyer, spend majority of their efforts on searching the market for properties that meet the buyer’s criteria. Real estate agents usually have collected data on market troths and peaks, to help them determine a fair price for a particular property.

Mortgage Brokers

The days where only the wealthy could afford a broker to access the property lending markets are now far behind us. With the advent of the internet mortgage brokers have become a lot more competitive, forced to compete amongst thousands of new comers for your business.

A mortgage broker can act as an independent or as a firm. Mortgage brokers usually negotiate your loan capacity on your behalf, typically between the borrower and the lender (in most cases a bank). Brokers perform most of the leg work on researching the market, aiming to get you the best possible loan that suits your criteria.

The loan searching and application process can be quite daunting for new buyers, with hundreds of different offers out there, it’s hard to make sure you get the right deal. Firstly, they can shop around for you. Everyone knows shopping around could lead to a better deal but it’s time consuming, especially if it involves contacting a number of banks and lenders separately. A mortgage broker can search the range of loans available from multiple lenders very quickly to find you the right home loan for your needs. Acting as the all-knowing hub for all your mortgages questions and requitements can be very comforting, especially for a first time property buyer.

So how do mortgage brokers make their bread and butter? A mortgage broker’s fee or commission for arranging a loan is often paid by the credit provider whose products they sell; this is usually a bank. Different credit providers pay different commission levels. This can potentially influence what loans the broker recommends to you. Sometimes a broker will charge you a fee directly instead of, or in addition to, the credit provider’s commission. This is where the client needs to perform their own due diligence, as some mortgage brokers have been known to be bias and favour certain lenders.

Liberty Financial

Now that we’ve addressed the difference between the two, let’s talk about how a financial company can assist you to find the best deals and connect you with the best real estate agents and lenders.

Formed in 1997, Liberty Financial has been around for quite some time now. Considered to be the pioneers of tailored loan solutions, one of their main focuses are on home loans. Their innovating and flexible approach has helped over 140,000 satisfied customers with their home loan approvals to date.

Buying your first home can be a big deal, no matter where you sit on the experience ladder. Whether you’re on the search for your first home or a new investment, Liberty can find you a package solution that will work for you. Liberty works extensively with a large selection of lenders and real estate agents. We understand that not every real estate agent, broker, buyer or seller fit into the same box. We connect our clients to the best real estate agents that suit them, based on their needs, requirements and loan capacity. Liberty aims to provide the best service regardless of whether you’re looking for a great interest rate, are self-employed and need a low-doc loan, or have bad credit history and just need a fresh start.

Liberty have an extensive range of loan options to choose from, that have been both recommended and endorsed by real estate agents, brokers and clients alike. To just cover a few of their great option, see below:

Liberty Free

Liberty free is a more flexible variable home loan rate, that offer a low interest rate to homeowners.

The minimum amount you can borrow with this home loan is $50,000 and the maximum is $1,000,000. The highest LVR possible is 95% but if your loan-to-value ratio is above 85%, you’ll only pay a slightly higher interest rate.

Liberty Sharp

This option is suited not just for those looking to buy a home, but also those who are interested in an investment property too. It’s a low interest rate loan with no ongoing fees. This option gives to the choice for a weekly, fortnightly or monthly repayment.

Liberty Custom

This is a custom home loan that can be tailored to the customers borrowing capacity. This option is well suited for people with a poor credit history or are self-employed. This option has a maximum LVR of 90% and allows for loans between $30,000 and $3 million. Similar to the Liberty Sharp option, this loan allows you weekly, fortnightly or monthly repayment with a redraw and split option.

Having that one-stop-shop can reduce a lot of unwanted stress for new property buyers.

To use their online home loan calculator or to view their other home loan options, visit the Liberty website today.