How can a mortgage broker help?
Each year mortgage brokers help thousands of Aussies find home loans that suit their particular needs and financial requirements.
With more than 4000 mortgages on the market, using a broker can be a great way to save serious money on your home loan.
That’s because brokers have regular contact with a wide variety of lenders, meaning you are effectively getting access to many lenders and their loan options.
But as with any important financial decision, it’s important to use a broker who has the requisite skills and experience to give you the best possible outcome.
Do your homework
One smart move is to shop around. Like with any financial product or service, it can help to contact multiple brokers and compare what they can offer, before making a final decision.
You should also be aware that brokers tend to work with a “panel of lenders”, meaning different brokers will have access to a different set of lenders. Check which lenders are on the broker’s list to ensure you’re not missing out on loans suitable for you.
Additionally, while brokers tend to work on commission, some may offer to refund part or all of their commission as a rebate. It can pay to check with brokers whether this is an option.
In any case, remember to ask about the fee structure for the broker’s service and compare fees across different brokers to make sure you are getting a good deal.
Understand the process
At all stages of the process, you should feel informed and confident that you understand what’s going on and that the broker has your best interests at heart.
To this end, make sure you provide your broker with all necessary documentation so they clearly understand your financial situation and your borrowing needs.
Also, don’t be afraid to ask the broker to explain different mortgage options and why they have recommended particular loans, identified as matching your financial requirements.
Make sure your broker is a member of a reputable industry body like the Mortgage & Finance Association of Australia or the Finance Brokers Association of Australia.
ASIC also advises getting written agreement from your broker that tells you the type of loan being arranged for you as well as its amount, term interest rate, and any fees you have to pay.