Nov 12, 2018 1:48:00 PM

What to ask your mortgage broker

Topics: Mortgage Broker, Australia Mortgage, Mortgage Debt, Mortgage Terms, Home Loan, Home Loan Advice 0

When you’re shopping around for a mortgage, there’s a lot more to consider than just the interest rate. Which is why it pays to work with a mortgage broker who understands the complexities and can guide you every step of the way. But choosing the right mortgage broker can also be tricky. Here are 5 questions we suggest you ask before deciding on a broker.
rawpixel-633841-unsplash (1)

What to ask your mortgage broker
When you’re shopping around for a mortgage, there’s a lot more to consider than just the interest rate. Which is why it pays to work with a mortgage broker who understands the complexities and can guide you every step of the way. But choosing the right mortgage broker can also be tricky. Here are 5 questions we suggest you ask before deciding on a broker.

1. Why should I choose a mortgage broker and not a lender?
As well as aiming to find you the best interest rate for your unique circumstances, a good mortgage broker will have an intimate knowledge of lenders and financial products and should be able to advise you on on a range of choices that are suited to you. A broker will also guide you through the home loan application process, saving you the time you would need to take having to research home loans and shop around for deals yourself.

2. How much experience do you have?
Buying a home can be a complicated and stressful process, so it pays to know you’re in qualified and experienced hands. Check that your broker is certified as that means they’ll need to adhere to certain standards when it comes to performing their duties as a mortgage broker. Experience is equally important because it means they’ll have a network of lenders to choose from. An established broker will also have access to an arsenal of industry professionals who they will be able to refer you onto should you need it.

3. What are your typical clients like?
It makes sense to choose a broker who has experience in working with people just like you. This is particularly important if you’re a first-home buyer and taking advantage of Government grants, monetary gifts from family or guarantors – it’s vital you work with a broker who understands the intricacies involved in these types of transactions.

4. How are you paid?
Most mortgage brokers are paid a commission by the lender on settlement, but some may charge fees on top of any commission they receive so make sure you’re aware of what these fees are before you sign up – it’s important you know about these and plan accordingly.

5. How many lenders are on your panel?
One of the biggest advantages to working with a mortgage broker is the amount of choice it opens up to you in terms of both lender and financial products. It makes sense that the more lenders a broker works with, the better. Most brokers work with the bigger banks but you may want to check whether they have access to smaller lenders or non-bank lenders as these options may be more suited to your situation. It’s also worthwhile finding out how your broker decides on the most suitable types of lenders or home loans for you.

Get in touch with a Mortgage Express broker if you’d like to find out more about the home buying process. We have access to a wide range of both bank and non-bank lenders and can often assist borrowers who have previously been turned down.


Disclaimer

While all care has been taken in the preparation of this publication, no warranty is given as to the accuracy of the information and no responsibility is taken by Finservice Pty Ltd (Mortgage Express) for any errors or omissions. This publication does not constitute personalised financial advice. It may not be relevant to individual circumstances. Nothing in this publication is, or should be taken as, an offer, invitation, or recommendation to buy, sell, or retain any investment in or make any deposit with any person. You should seek professional advice before taking any action in relation to the matters dealt within this publication. A Disclosure Statement is available on request and free of charge.

Finservice Pty Ltd (Mortgage Express) is authorised as a corporate credit representative (Corporate Credit Representative Number 397386) to engage in credit activities on behalf of BLSSA Pty Ltd (Australian Credit Licence number 391237) ACN 123 600 000 | Full member of MFAA | Member of Credit and Investment Ombudsman (CIO) | Member of Choice Aggregation Services.