Today we are going to see 16 easy tips to Find the Best Mortgage Broker in Brisbane.
It might be time to chat to a mortgage broker, you’ve arranged a time to catch up and want to make sure that they are the best fit for you in your situation – So what questions should you ask?
We’ve put together 16 questions which we believe will help you get to know your mortgage broker better and see if they are the right fit for you.
Finding the best mortgage broker in Brisbane:
- 1. Determine the Mortgage Broker’s Experience
- 2. Research the Broker’s online reviews in Brisbane
- 3. Ask why you should use them instead of going to a bank
- 4. Check if they are members of any associations
- 5. Ask for the Mortgage Broker’s credentials
- 6. Find out their Home Loan Research process
- 7. Question what commissions the Mortgage Broker is paid
- 8. Request the Mortgage Broker’s lender panel
- 9. Prepare a few questions to ask
- 10. Fully Explain your needs
- 11. Understand how to complain
- 12. Slow down and don’t rush
- 13. Don’t make too many home loan applications
- 14. Ask about home loan rebates
- 15. Get all the details from the Mortgage Broker in writing
- 16. Don’t risk having your mortgage declined
1. Determine the Mortgage Broker’s Experience
In finance experience counts for everything, it can be the difference to knowing you qualify for a loan or not.
It is worth asking your mortgage broker how long they have been in the industry for, have they had banking experience previously or are they completely fresh to the industry?
This gives you a good sense of their background and if they are suitable to help you in your situation. You can even go one further and ask if they own property? Knowing they have sat on the other side of the fence can help give you some confidence they will be able to help you navigate the home loan process quickly and easily.
These questions will give you an understanding of their background, where they’ve come from, and what they have done.
2. Research the Broker’s Online Reviews in Brisbane
When you chose the right Mortgage Broker you will find the entire home loan process to be much easier.
Short of asking your friends and family, you can use a few different independent review websites online to see what previous customers have thought of your mortgage broker in Brisbane.
All of these websites are independent, and spending a few minutes reading the past reviews can give you an idea on how your Mortgage Broker might have helped other people in Brisbane.
3. Ask why you should use them instead of going to a bank
Although you might expect the answer to be obvious, it is always worth asking your mortgage broker why you should go through them rather than going directly to your bank.
In general using a broker will give you advantages like seeing options across multiple lenders, understanding what the mortgage market is doing and what different policies are available for you to take advantage of (for example 90% no LMI loans for pharmacists or medical professionals), but by asking the broker this question it gives you an understanding of the areas they specialise in.
We find competition between the banks is a good thing, and even though you might have been with a bank for years and years they generally don’t reward loyalty in the form of discounts as they just assume you’ll stay with your existing bank.
So we have seen lots of situations where we have been able to negotiate really large discounts for customers who stay with their own bank because the bank understands the mortgage broker can easily take them somewhere else.
4. Check if they are members of any associations
These associations ensure the professionalism of the Best Mortgage brokers across the country through required education requirements to make sure the brokers keep up to date on the latest policies and compliance procedures.
If your broker isn’t a member of the MFAA or FBAA it should be considered a red flag as they could have been made to leave the industry due to issues in the past so it’s worth asking the question or doing a quick search online before you see them.
5. Ask for the Mortgage Broker’s credentials
Mortgage Broker’s in Brisbane are required to have a Credit License, or be a Credit Representative to operate.
You can see if they are members on the ASIC Register portal. We are Credit Representatives 401688 authorised under Australian Credit Licence 389328.
You should also ask if your mortgage broker has won any awards.
At Hunter Galloway, we have built a brilliant reputation for being extremely well organised, helpful and making the home loan process as smooth as possible.
Some of our achievements include:
- 🏆 Finance Brokers Association of Australia Broker of the Year 2017 (Queensland)
- 🏆 Vow Financial Rising Star of the Year 2016 (Queensland)
- 🏆 Bankwest New Support of the Year 2015
- 🏆 Finalists at the Australian Mortgage Broker awards in 2017.
- 🏆 Our Director Nathan Vecchio was named in The Adviser’s Top 5 Brokers in Australia under 30 for 2017
- Regularly featured in The Adviser, Mortgage Professionals of Australia and other mortgage industry publications.
6. Find out their Home Loan Research process
Ask your broker how they will decide which loan will best suit your needs, as well as find out their process and how they operate.
Firstly if they are saying they will use the lowest rate to best suit your needs you need to ask more questions, a low-interest rate loan could attract additional fees or have restrictions for example not having an offset account which could cost you much more in the long run.
In addition to this it’s good knowing their process and what goes on in the background to get your loan approved – do they have other team members or support staff?
If they are a one person brokerage what happens if they get sick, or take holidays – will your loan still get processed? It’s always good to know they have a team working in the background to make sure you not only get the best deal, but you are also looked after in the process.
7. Question what commissions the Mortgage Broker is paid
It’s always good to find out how much commissions they get paid for doing your home loan. In general mortgage brokers get paid commissions from the bank that gives you your loan – this doesn’t add any costs to you as a customer but in some cases, there are brokers who also charge fees for their services.
These are typically on commercial loans or development finance, but it’s always best to know up front what you’re getting into so you don’t get down the process and unexpectedly find out you need to pay your broker extra fees. You can also ask if the mortgage broker has any conflicts of interest.
At Hunter Galloway, we do not charge any additional fees for our service.
We paid commissions by the banks so our services do not cost anything to you.
8. Request the Mortgage Broker’s lender panel
The majority of accredited mortgage brokers have at least 20 different lenders and bankers they can utilise to help give you the best home loan – but – these days not all lenders are accepting loans from all brokers.
There are different volume requirements, where a broker who doesn’t do much business is unable to write mortgages through a bank like the Commonwealth Bank (CBA) as they require brokers to submit a minimum amount of home loan applications per year to maintain their accreditations.
Again it’s important to understand this up front, to know which banks are on the broker’s panel and which aren’t – and importantly why?
9. Prepare a few questions to ask
Question 1: What is a Comparison Rate?
A comparison rate is a brilliant tool that can help you work out the actual cost of a loan. It factors in all the interest rate expenses, loan fees and charges to boil down into a single percentage rate. Ultimately this can help you compare one lender to another, factoring in all fees and charges.
For example, the broker might tell you about a loan that has a variable interest rate of 3.99% and a comparison rate of 4.54% based on a loan of $150,000 over 25 years.
If you are borrowing a loan of say $500,000 or another figure and your loan term is 30 years the 3.99% rate is not really true and will be higher once you factor in fees and charges so don’t let a really cheap rate trick you up. Comparison rates can help you work out which lending option makes sense for you factoring in all fees.
Question 2: What impact will my credit card limits have on my borrowing capacity?
Lastly, ask what impacts your credit card limits would have on your borrowing capacity. Even if you don’t owe anything on your credit cards, your credit card limits will have an impact on your borrowing capacity, and if you’re looking to purchase your dream home and need to lend a bit more money reducing your credit cards will have a positive impact.
For example, a $10,000 credit card limit, which has nothing owing on it could reduce your borrowing capacity by up to $40,000 – this is 4 times the credit card limit, and could negatively impact your dream home purchase! Knowing what impact these cards will make can help you make better decisions before starting the entire home loan process.
10. Fully explain your needs
Ensuring the mortgage broker knows your financial situation and borrowing needs will help them find the best home loan for you.
What are you looking at doing? Buying a home? Refinancing your existing mortgage? And what are you looking for?
Having a clear idea on this, and explaining your needs to your mortgage broker can make sure you get the best results.
Read More: First Home Buyer Information
11. Understand how to complain
ASIC reccomends if you have a complaint about a broker or a dispute you can’t resolve, find out how to complain or phone ASIC’s Infoline on 1300 300 630.
Your mortgage broker should always provide copies of the following, which will outline how their complaints process.
12. Slow down and don’t rush
Don’t sign anything unless you fully understand what it is. If you aren’t sure about what you are signing get independent legal advice.
Read More: Home Loan Guide to Brisbane
13. Don’t make too many home loan applications
Making too many home loan applications can affect your credit rating.
A Mortgage Broker’s job is to shop around and find you the best deal, and while you might want to talk to multiple brokers to find someone that is a good fit you should never submit multiple loan applications with multiple lenders.
This can affect your credit rating and cause your loan to be declined.
14. Ask about home loan rebates
From time to time there are home loan rebates and specials available from mortgage lenders including cashback deals.
Lenders can offer up to $2,000 in cash back rebates and rewards after a loan has been refinanced.
Talk to a mortgage expert and see if you qualify for cash back rewards and rebates.
15. Get all the details from the Mortgage Broker in writing
Always ask for written recommendations and get information on commissions, fees and products in writing.
ASIC recommends, a written agreement should tell you the type of loan being arranged for you, the amount of the loan, the term of the loan, the current interest rate, and any fees you have to pay. The fees could include broker’s fees or commissions, fees to the credit provider or lender for setting up the loan, and/or any early termination fees.
Your mortgage broker should always provide credit advice in writing.
16. Don’t risk having your home loan declined
Did you know that in 2018 over 40% of home loan applications that get submitted never make it to settlement? Don’t take that risk.
Our Mortgage Brokers have seen all sorts of mistakes in the past!
With their level of experience, they know problems you may face on your loan application and how to mitigate them when applying with a specific bank or lender. We have a wide range of lenders on our panel and our brokers intimately understand their credit policies.
We can do this through our own internal credit assessment process which we complete before applying with any lender.
Our team has its own internal Credit Manager who reviews each application before being submitted to the lenders, meaning we won’t apply with a lender who won’t approve your loan.
What does this all mean in short?
In summary before choosing the best mortgage broker Brisbane you need to ensure you ask some of these questions, including finding out what their past experience has been and how long they’ve been in the industry.
Knowing how they will choose your home loan, what commissions they are paid and a few simple questions around comparison rate and your credit card limits can make the difference between choosing a good and a great mortgage broker Brisbane.
All of these questions will help you make a better-informed decision and make sure you’re working in the right broker for your situation!
Help this is all confusing
At Hunter Galloway we help home buyers get ahead in this competitive market, we give you the actual strategies that have helped other home buyers like you secure a property when there have been 5 other offers on the table! Enquire online or give us a call on 1300 088 065.