How do you pick the best mortgage broker?? There are 16,000 brokers in Australia, and several thousand Mortgage Brokers Brisbane. So how do you pick the best broker?
You want someone that can help you find a home loan to meet your own needs, so we are going to look at four questions you should consider asking your potential mortgage broker before starting the home loan process. These questions will help you pick the best mortgage broker for you.
How much experience do you have?
Although all brokers need to be registered with a nationally recognised association like the FBAA (Finance Brokers Associate of Australia) or MFAA (Mortgage & Finance Association of Australia) practically getting into the industry can be as simple as obtaining a 6 week diploma or certificate in mortgage broking without any background in finance or lending.
It is therefore important that you ask about your brokers experience, find out:
- What have they done in the past?
- Where have they worked? Have they been a baker or a banker?
- Do they own properties themselves?
- What types of home loans do they specialise in?
- What types of clients they typically work with?
- Have they won any awards in the past?
These questions will make sure your broker is a good fit for your situation, and ensure they can meet your needs during the home loan process and beyond.
Research mortgage brokers online
It’s pretty hard to hide on google, so make sure you do a good search one what people are saying about your broker. Check out Google Reviews, Facebook, LinkedIn, TrueLocal and as many different sources as possible to see what previous customers are saying. The more you can find out about them directly from previous customers will help you make a better decision in choosing if this broker is right for you.
Looking at mortgage broker reviews also helps you see what types of customers they have helped in the past – are they people who are a similar age and similar position to you? Or for example are they all older commercial investors, and can this broker actually deliver what they claim?
How do You Choose the Right Loan for Me?
Thirdly ask your broker how they choose the right home loan for you? Do they have a process they follow, or is it a bit looser? Do they get your information up front and assess your situation to make sure you fit the banks requirements?
You want the home loan process to go as smooth as possible, and if your broker is not assessing your information up front it can cause lots of unexpected questions to come back from your bank or lender at the 11th hour causing lots of unnecessary stress and even risking your loan will get declined.
It’s also important to find out if they have a team and support staff, or if they are a one person operation?
If they are a one person operation it can be quite challenging as they need to look after everything from start to finish, which takes much more time and slows down the process meaning if you only have short finance clauses it could put your property at risk. Also if the broker gets sick, or goes on holiday as a sole operator it can be challenging as you won’t be able to progress your home loan application.
How Much are your Brokerage Fees?
Typically speaking most mortgage brokers don’t charge a fee for residential home loans as they are paid commissions from the bank to establish the loan – but some brokers do charge so its important to know this up front so you know how much its going to cost, and what you will actually get for that.
At Hunter Galloway we don’t charge any fees for our services as we are paid commissions by the lenders.
What does this all mean in short?
In summary before choosing a mortgage broker Brisbane you need to ensure you ask these four questions, finding out what their past experience has been and how long they’ve been in the industry.
You need to understand what other previous home buyers are saying about your broker online and if it is positive. Ask about what sorts of loans they specialise in, and if they have helped customers like you in the past, and finally what costs are involved so everything is transparent up front.
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
If you are a wanting to buy a home speak with one of our experienced mortgage brokers to walk through the next steps with you.