Struggling to find the right home loan? Contact a licensed mortgage broker and get expert help.
Mortgage brokers are professionals who sort through hundreds of loans in the market so borrowers don't have to. A mortgage broker's service is usually free because they earn a commission from the lender. A good mortgage broker can make life easier and they can help borrowers in difficult circumstances to find a home loan that matches their situation.
Read on to learn about choosing a mortgage broker or start comparing brokers in the table below.
Find a home loan broker in the table below
A mortgage broker is a professional who compares and helps you apply for home loans on your behalf. A good mortgage broker will give you personalised service all the way through to settlement.
Many brokers are happy to work around your schedule, and will organise meetings after hours in your home. Plus most mortgage brokers will not charge you for their services — they are paid by the lender. While a mortgage broker does not work directly for banks or financial institutions, they do work with them to provide you with a wide selection of choices.
Brokers can also be tremendously helpful if you have a poor credit history, because while your options may be limited when you approach a single lender, the wide array of choices offered by a mortgage broker may be able to help you find a solution.
How can I benefit from a mortgage broker?
A mortgage broker can offer a range of home buying and home loan services which can help make the transition from renting to buying, or the transition between properties smoother and easier on your time. However mortgage brokers services are not for everyone and if you prefer to be in control of your choices and have access to the full range of Australian home loans on offer you may prefer to go direct. You can benefit by making your own comparisons by going directly to the bank because:
- A mortgage broker is a middleman. A mortgage broker will liaise between you and the lender during the entire application process, so you are unlikely to even meet a lender representative because the paperwork can be processed through your mortgage broker. This means that you may not get a chance to find out about the sort of service you will receive from your lender, or get to know your bank manager if you need to ask a question or find out more.
- A mortgage broker submits the loan on your behalf. A mortgage broker will provide you with a range of loan options, and will then complete the paperwork on your behalf and submit that paperwork to your lender. This means you have less involvement in the application process.
- A mortgage broker means you don't spend time comparing loans. This can benefit you if you don't have the time to compare loans yourself, however mortgage brokers will not show you all of the loans on offer from Australian lenders. This means you won't learn how to compare loans yourself, as your broker will be doing this for you.
The majority of brokers don't charge for their service. Brokers are paid a commission by the lenders they work with for introducing clients. This doesn't always mean, however, that the interest rates offered by brokers are higher than those offered directly by lenders. Banks generally see the value in paying commission to brokers because they introduce more customers than a bank's own branch network, and they handle the ongoing customer service after the loan is settled.
Some brokers do charge a fee for their services, but these brokers generally offer services above and beyond sourcing home loans. A mortgage broker who charges a fee might also put together a budget for you, help you identify areas in which to buy and might also be a licensed financial planner who can offer investment advice and build an ongoing strategy for your finances.
There are a number of large mortgage broker networks across Australia, which means you're likely to find an experienced broker nearby, no matter where you live. Here are just a few:
Aussie Mortgage Brokers
Aussie was one of Australia's pioneering mortgage brokers. The company is a franchise brokerage, which means all franchisees are held to a high standard to ensure a consistent level of service. Aussie has access to more than 20 lenders.
Finsure is a mortgage aggregator. This means it provides a lender panel and service to independent mortgage brokers. The company works with more than 1,000 brokers nationwide, and has access to more than 35 lenders.
eChoice is a digital brand that combines technology with a personal touch to meet its customers' unique home loan needs. It has access to 25 lenders and hundreds of different loan products.
iConnect is a franchise brokerage arm of leading mortgage aggregator Connective. iConnect has access to more than 40 lenders, and provide individually tailored service to their clients.
Mobile Mortgages is a smaller broker offering bespoke service. It has access to more than 30 lenders, and has more than 30 years of finance and banking experience. Mobile Mortgages can also offer conveyancing and insurance, as well as connecting you with real estate agents and valuers.
Ask for recommendations
Friends, family and colleagues can be great sources of recommendations. Many of the best brokers source the majority of their business from referrals. Ask around and see if anyone you know has had some experience with a good mortgage broker.
Do your research
Mortgage brokers may have access to hundreds of different loan products, but it doesn't hurt to spend a little time researching your options on your own as well. Remember, this is your mortgage and it will be with you for a couple of decades to come. Arming yourself with information will help both you and your broker.
Special deals might mean special conditions
If a mortgage broker recommends a special deal, always ask if there are any special conditions attached. For example, a super-cheap interest rate with one particular lender might be unbeatable in terms of rate, but the conditions could include penalty fees for extra repayments. Other special deals may include introductory offers that sound incredible, but which revert to a much higher interest rate once the introductory period is over. Always check if there are conditions attached to any special deals you're offered.
Start a folder and keep written notes of any contact you receive. Include details such as time, date, names and any offers you receive in writing from brokers. This can be invaluable later in case of a dispute.
Approach more than one broker
Always keep in mind that different mortgage brokers will often have different lenders on their list to recommend to you. This is because each broker must gain accreditations with each individual lender in order to offer you that bank's products. For this reason, not all brokers will have access to absolutely every lender available in the entire country. They may choose a selection of preferred lenders and banks that represent a broad cross-section of clients well and stick with those.
If you consider that not every broker may end up with access to every lender available, it could be a wise decision to make an appointment to talk with two or three different brokers. This may give you access to a wider selection of banks and lenders than you might otherwise have had.
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