Richard Whitten is a senior writer at Finder covering home loans and property. He helps everyone understand the ins and outs of mortgages so they can make smarter property decisions. Richard trained as a high school English teacher but found it easier to manage personal finances than a classroom full of kids. Before joining Finder, he edited textbooks and taught English to office workers in South Korea. Richard has a Bachelor of Education and a Graduate Certificate in Communication.
Mortgage Broker Finder™
Here's how you can find a good mortgage broker
to guide you through your home loan search.
After entering your details a mortgage broker from Aussie will call you. They will discuss your situation and help you find a suitable loan.
- A comparison of home loans from multiple lenders.
- Expert guidance through the entire application process.
- Free suburb and property reports.
The Adviser’s number 1 placed mortgage broker 8 years running (2013-2020)
Compare mortgage brokers
You can compare mortgage brokers in the table below and click "more info" to learn more about a particular company. If there's no green button on a broker it means we don't currently have a partnership with this broker. You can contact them directly on their own site.
Leave your details with any of the providers on this page and one of their mortgage brokers will call you. They will talk you through suitable mortgage options for your situation and help you with your application and paperwork too.
How can a mortgage broker help me find a loan?
Finding a home loan can be a confusing and time-consuming process (although at Finder we think there's nothing stopping anyone from comparing rates and getting a good deal for themselves). Mortgage brokers exist to do it for you, and usually at no cost to you.
A mortgage broker is a licensed home loan expert. They have access to home loans from a panel of lenders and they will find mortgages for you and then help you with the application process all the way through to approval and beyond.
For borrowers who are busy, find finance confusing or aren't sure if they're eligible for a home loan going with a broker is a pretty good idea.
Borrowers who should strongly consider using a broker
While you can go it alone, there are some borrowers who are probably better off going straight to a broker. This includes:
- Borrowers with a poor credit history. Brokers are useful for borrowers with poor credit history or discharged bankruptcies. They can help you apply for regular home loans that you may qualify for or specific bad credit products.
- Borrowers on Centrelink or pensions. It's often possible to qualify for a loan while receiving welfare payments (and using some of the payment to count as income) but a broker can help you with eligibility requirements for relevant lenders.
- Older borrowers. Middle-aged borrowers can have difficulty getting approved for a home loan because they're older and have fewer working years to pay a loan back. Brokers have a good sense of which lenders may accept your application.
- Borrowers with complicated situations. If you're looking to set up a complex property investment strategy or have multiple loans then a broker is a really good idea. A broker can help you structure your loans in a more advantageous and cost-effective way.
How do mortgage brokers get paid?
Brokers are usually free for borrowers to use because they receive a commission from the lender you choose to go with.
There are two types of broker commission:
- Upfront commission. Upfront commission is the commission a broker receives for introducing the home loan customer to the lender. It is normally around 0.3-0.5% of the loan value. For example, for a $850,000 mortgage, a 0.3% commission would amount to approximately $2,550 in the broker's pocket.
- Trail commission. This is a recurring commission that is calculated based on the remaining loan amount each year, which is paid to them on a monthly basis. Some lenders offer an ongoing commission of 0.1-0.2% based on the remaining value of the home loan. This commission is paid for the broker providing ongoing service to the client.
Brokers may charge you a fee if they're providing more services, such as financial planning. Check with a broker before you employ their services to get a clearer idea of potential costs.
How do I know I've found a good broker?
There are many mortgage brokers working in Australia and you can compare and research them as you would other services:
- Ask for 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.
- Check reviews. Put your broker's name into a search engine and read reviews from previous customers. This is a good way to get a sense of a broker's history and service.
- Check their accreditations. Your mortgage broker should be a qualified professional. You'll also want to ensure your broker is registered with the Australian Securities and Investment Commission (ASIC) either as a license holder or a credit representative. You can check ASIC's register here. Mortgage brokers are also required to be a member of an industry association, either the Mortgage and Finance Association of Australia (MFAA) or the Finance Brokers Association of Australia (FBAA).
- Do your own home loan 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.
- Approach more than one broker. Shop around and talk to a few brokers before deciding which one you want to go with.
Are there any downsides to using a broker?
A mortgage broker does a lot of the legwork for you and may not charge you a cent. What can be wrong with that? It's definitely a good service, but there are some reasons why you might be better off just finding your own loan.
- A broker won't compare all loans. Mortgage brokers only compare lenders in their panel. That's usually a list of between 20 and 30 lenders, including the Big Four in most cases. While this gives you plenty of options it means you will likely miss out on the very lowest home loan rates from small online-only lenders that don't feature in broker panels.
- A mortgage broker is a middleman. A mortgage broker will liaise between you and the lender during the entire application process. You might not even deal with your lender until settlement or after. This makes it hard to get a sense of what your lender is like and you'll rely on your broker to answer your questions, at least initially.
Questions to ask your broker
When talking to a broker you should ask a few questions about the loans they're suggesting for you and their service overall. This will help you understand the broker process and the details of your loan.
Here some questions you should ask:
- Do you charge a fee? While most mortgage brokers don't charge their clients, some do, so you should pose the question to the broker at the start so you're clear about all the costs involved.
- How many lenders do you have in your network? You want to ensure that the broker has a diverse range of lenders in their panel, including banks and non-bank institutions.
- How much commission do you make? To understand the broker's motivation, you should ask how their commission structure works. This may help you determine whether or not there is a conflict of interest at play.
- Is the interest rate on my loan permanent or just a promotion? Lenders often give new borrowers an attractive low rate to win their business. This low rate is normally temporary, and sees you revert to the lenders standard rate when the promotional period is over. Find out whether the advertised interest rate is permanent, and if it isn't what's the lenders standard variable rate. There's no point getting a great rate for a year if you're going to pay over the odds for the remaining term.
- How much of a deposit do I need? Ask how much of a deposit the lender wants, and find out whether the size of the deposit affects the interest rate of the loan. Sometimes a lender will give you a better rate of interest if you put down a larger deposit. A smaller deposit may also mean that you have to pay a lenders mortgage insurance (LMI) premium. Your broker should lay this all out for you in easy to understand language.
- Can I make extra repayments and/or repay my loan early? The quickest way to repay your mortgage and save money in interest is to make overpayments whenever possible. Double check your lender is happy for you to do this without penalty. Some lenders charge an admin fee to process the additional payment. Whilst you're on the subject of overpayments you should also find out whether your monthly payments adjust in line with any additional payments you make.
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