14 Jun What to look for in a mortgage broker?
Buying property is one of life’s biggest decisions, regardless you’re looking for a new family home or are investing.
For those buying for the first time, there’s much to learn throughout the process. Even if you’ve bought many times before, the intricacies of securing a loan can be a cumbersome and, at times, stressful process.
However, there’s one individual who can make your purchasing journey a very different experience: your mortgage broker. By working with a mortgage broker, you stand to benefit from their years of experience, expertise, and the personal relationships they foster with lenders large and small.
So, what is it exactly that mortgage brokers do?
Mortgage brokers act as the in-between for both lenders and borrowers. Although it’s not necessary to use a mortgage broker to secure a loan, working with a broker can assist you in the loan application process at every step of the way.
You’d be surprised at how much of a difference a mortgage broker can make, so here’s some helpful tips for how to know you’ve landed on the right mortgage broker for the job.
Tip 1. Take a look at their lending panel
A mortgage broker’s lending panel will show you the major and minor lenders they work with. As it’s important for your mortgage broker to evaluate loans available to you from a large and competitive pool, examining their lending panel is a good way to gain insight into just who it is they work with, giving you the opportunity to ensure you’ll have a large number of loan products to choose from. However, it’s not always about the biggest pool – different brokers will have strong relationships with different lenders, so discussing this pool with your potential broker and understanding why is it they work with those specific companies is an important part of the evaluation process.
Tip 2. Check their accreditation
Changes in Australian legislation mean that from 1 July 2011, all brokers must be registered with the Australian Securities and Exchange Commission, hold an Australian Credit License of their own, or instead be a ‘credit representative’ from an organization that does hold one of these licenses.
It’s simple to check on this accreditation – you can do so online via www.asic.gov.au. Details of this accreditation should be supplied to you by your broker prior to working with you in any assistance-providing capacity.
Tip 3. Make sure you understand their fees and charges
Working with a mortgage broker will most often come at no cost to you, as the broker’s commission are paid to them via the lender. However, this can differ from broker to broker, so it’s important to ensure you have a full and clear picture of any fees and charges before work commences to save yourself an unwelcome and unexpected surprise further down the track.
A dedicated broker will work with you to help you achieve your loan needs. If you’re looking for a professional, experienced and reliable mortgage broker in Melbourne, Aspirus Financial Services have the team you need – get in touch today to see how we can be of assistance.
Tip 4. Read the testimonials and reviews from existing clients
Many mortgage brokers these days have online profiles and portfolios. One way to find out about a mortgage broker is to know what their clients think about them. With Google and social media like Facebook where happy and disgruntled clients can rate and write reviews about their mortgage broker, it is worthwhile to read the reviews to have a clearer understanding of how helpful, knowledgeable and committed the mortgage broker is. Take note if there are quite a fair bit of unhappy clients or the ratings are low.