Whether you are buying your first home and looking for a home loan comparison or renegotiating your current home loan, a mortgage broker can help you find the best dealand save you a lot of headaches. Mortgage brokers act as a mediator between you and your lender and can help you fill out the confusing paperwork, negotiate a better rateand guide you along your home loan journey.
Brokers also work off commission. A broker is not anecessary agent and can be bypassed completely by dealing directly with your lender. How do you find a mortgage broker that is working for your best interests and not just commissions? By talking to brokers and asking them some fundamental questions, you can separate the wheat from the chaff.
Why should I use your services?
Asking a mortgage broker why their services are needed is a good way of determining their interest levels in you and your home loan. If a broker tells you that their services are absolutely necessary or tries to bombard you with legal terms and jargon, it might be best to deal directly with your lender.
How much experience do you have?
Brokers must have a minimum level of certification before they can legally operate in Australia. Brokers need to a have a Certificate IV in Finance and Mortgage Broking as a starting point, if your broker can’t show you this qualification, run away as fast as you can.
What area do you specialize in?
All brokers have different areas of expertise, so make sure you select one that is relevant to you. If one broker has twenty years’ experience and the other has five, it might be the obvious choice to go with the more experienced, but they could have 20 years’ experience with investment properties and no experience with first home buyers.
How will you decide the best deal for me?
Pay attention to how they answer this one carefully. If a broker is invested in you and not just chasing a commission, their answer should be considered and tailored to you. An opened ended discussion with them may indicate they are genuinely trying to find the best deal for you. If their reply is rushed and you are funneled into only two options, you might have found a dud.
How many lenders do you work with?
Finding the right lender is the most important aspect of your home loan. If a broker only has one lender on their panel, you might want to find another broker. A local lender like Newcastle Permanent Building Society offers great value home loans, so ask your broker about them.
Tell them about yourself.
If you have found a mortgage broker that you think you can trust to get you the best deal, help them out further by giving them insight into your personal situation. The clearer a picture your broker has of your financial situation, the better they can tailor a mortgage to you, and the more money you can save.
Australians are divided when it comes to using a mortgage broker, with a fifty-fifty split on whose using one and who isn’t. If you can find them, there are many good, honest brokers that will be able to not only save you big money but eliminate the rigmarole of applying for a home loan.
Unfortunately, there are many unscrupulous agents lurking out there. Unlicensed, uncaring, unfeeling scum bags who would happily lump you into a dud mortgage and grow fat of the commissions. Don’t be afraid to shop around for a broker if you decide to use one, and ask them some hard questions to make sure they have your best interests in mind. Good luck and happy house hunting!