Mortgage brokers act as a middle party between you and your lender and help you get the best market deals. Moreover, we answer all of your questions regarding the home loan application.
However, there is a difference between a broker who provides quality services and ones who are only there to make money via commissions. To make sure you are working with the best broker who will help you make informed decisions, you should ask the following questions:
Do they have a license?
This is the first and most important question you should ask your broker. A mortgage broker must have a license to practice in the real estate market. You can ask to see their license as a proof if it is not displayed on their web portal or in the office. ASIC (Australian Securities and Investments Commission) is a regulatory body. It supervises all the institutions and people who operate in the financial sector, including mortgage broker. You can also check the ASIC Connect Professionals Register to make sure if the broker has a license to practice in the market.
Why should I use a Mortgage Broker instead of going to the bank?
If a broker is unable to answer this question, you should simply move on and look for another one.
A mortgage broker is responsible for three things including:
- Saving you time
- Find a suitable loan package for you
- Organising and setting up a loan for you
The MFAA (Mortgage and Finance Association of Australia) has given details about the broker’s role. A good broker will always give a breakdown of what they do. You can also request to view the feedback of his past clients to assess their quality services.
Which lenders are on their list?
There are a lot of banks operating in Australia. This includes the four largest Australian banks, international banks providing local services, regional banks, credit unions and lenders. A good broker will have the following qualities:
- Access to a number of lenders, ranging from small to big financial institutions. This increases the scope of finding the best package by keeping in mind your financial goals.
- Knowing how to deal with those lenders.
- A good understanding of the time each lender takes for loan approval.
- A good understanding of the difference in each bank’s way of determining loan applications.
How is the loan value determined?
This specific question is a true test of a broker. It gives you a clear idea of how they work. They should clearly tell you how they obtain loan packages from banks and how do they find the right product for you based on your financial preferences. Moreover, they should also be able to give you the right information to find the right loan product. There are a number of other questions you can ask your broker, such as:
- How much experience do you have?
- What is the comparison rate?
- Will they process the first home owner’s grant for you?
There are a number of questions you can ask your broker, depending on what you are looking for.
Choose an experienced broker with a good reputation and the above questions will be helpful in taking the right decision. Chat to our team of brokers at Hunter Galloway now on 1300 088 065 or email Joshua.Vecchio@HunterGalloway.com.au