The title of this blog was intentional to grab your attention. Not for any sinister reason though. Just to give us all an opportunity to look at the role of Mortgage Brokers in the purchasing process.
Rather than keep you in suspense however, let’s get the answer out on the table straight away.
Mortgage Brokers – Friend or Foe?
Without a doubt, they are a friend. And if you are lucky enough, they can be a friend for life! A bit like a great Conveyancer really!
The banks all have their own reputation and we are not going to go into that. Instead, let’s just acknowledge right off the bat that Mortgage Brokers are the ones who organise the best deal for their clients (you). More importantly, the industry is structured and governed to ensure that Brokers are focused on looking after you, not the banks.
What are the advantages of using Mortgage Brokers?
Mortgage Brokers are fully qualified professionals requiring a minimum standard of a Diploma in Finance and Mortgage Broking Management. They are independent of any lender which allows them to compare hundreds of loans across plenty of Financial Institutions. Their independence is very important as they are not tied to providing 1 set of loan products from 1 bank.
Do I need to pay a Mortgage Broker?
No you don’t pay a Mortgage Broker. Lenders pay Mortgage Brokers, and the income or commission they earn does not affect your interest rate. There are some instances where the rate you receive may be less than what you can obtain by going direct to the lender.
What loans can a Broker assist with?
This list is extensive and can include Home Loans, Personal Loans, Residential Loans, Commercial Loans, Car Loans, Leases, Asset Finance, Developments, Construction and many more.
What information do I need to provide to a Mortgage Broker?
The documentation a Broker requires for an application might include but is not limited to ID, payslips or business financials depending on your employment situation, purchase contract, savings statements and if you’re refinancing there would be loan statements also required. Once your Mortgage Broker has a good idea of your circumstances, they develop a checklist of information.
In Summary …
For us, the attraction of using a reputable Mortgage Broker is simple. Unlike the banks, it’s in a Broker’s best interest to do the right thing by their client (the borrower). That’s how they secure repeat business through re-financing for future purchases or renovations. A good Broker will sit down with you and get to know you, your situation, and your goals (short and long term). From that information, they’ll then find the best loan product for you.
And when you find that great Mortgage Broker, the relationship you build with them can continue to be fruitful for many years to come. From the initial educating of their clients, all the way through to settlement, they’ll be right by your side. Just like a good Conveyancer, they are your ally right through the buying process.
If you’d like a recommendation for a Mortgage Broker to assist you, drop us a line here. Or, give us a call on 08 8261 5092.