Do you charge a fee?
The bank pays a commission for doing the work for them. There are no hidden costs payable by the client
Why should i use a mortgage broker if i can go with a bank?
To achieve a stronger rate via a broker than through a branch.
What does a mortgage broke do?
A Mortgage Broker works closely with you to determine your needs. With a strong knowledge of banking processes and policies a broker is then able to determine which lender and product is most suitable for your needs.
We then prepare and submit an application on your behalf to the lender. We work with the bank to ensure your loans and accounts are set up just the way you want them.
Don’t you just recommend the lender who pays the most commission?
No. A successful business is built on putting the client’s needs first.
My job is to find the best loan for your needs and serviceability. I’ll provide documentation that clearly outlines the commission I will be getting from the bank.
Brokers are governed by ASIC (Australian Security and Investment Commission) via the NCCP Act (National Consumer Credit Protection Act). This is legislated to protect consumers and ensure ethical and professional standards in the finance industry.
Assessing your needs
A mortgage broker will take the time to understand your needs, discuss your financial circumstances, and identify your loan requirements. As a first step, they’ll discuss your property goals, factoring in your loan requirements considering your lifestyle, job, family and other aspects. They’ll also discuss the type of documents needed to assist you to make a loan application – such as pay slips, tax returns, and personal bank statements. Once they have a clear understanding of your financial situation and goals, your broker will be able to advise you on your home loan options.
As part of their service, your mortgage broker will recommend one or more home loans that fit your borrowing needs. They will be able to search through their database – which usually includes multiple lenders – to zoom in on specific loan products that meet your requirements, discussing their details and features with you. To help you see how different products stack up against each other, your broker will provide you with a comparison rate for each product. Comparison rates are calculated using a common formula and include the advertised interest rate as well as fees and charges incurred at the start of a loan. They should be used as a guide only though, as they don’t include all of the fees and charges you may incur over the life of a loan. The sophisticated software brokers now use will give you not only a broad view of your lending options, but also a tight analysis on real specifics of the loan that have been identified as meeting your needs.
Managing the loan process – From start to finish
When you’ve chosen the loan you’re comfortable with, your broker can help you fill out the necessary paperwork to get the loan process underway. This might include submitting your home loan application on your behalf and communicating with all the relevant parties until your home loan is approved. If you decide you want to switch home loans or refinance at a later stage, your mortgage broker can also help you source new loans and give you advice at every step of the way.