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MORTGAGE BROKERS – FRIEND OR FOE?

Unashamedly, the title of this week’s blog is designed to draw you in. Not for any sinister reasons 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, friend.

The banks have a reputation that is well deserved, and I’m 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). And the mortgage broking industry is set up and governed in a way that ensures that Mortgage Brokers look after you, not the banks.

After the great response to last weeks blog where we interviewed Sarah Steel from Strata Data, this week we invited Scott Erickson in for a chat. Scott is the Founder of Loans & Leases and is a Mortgage Broker with over 30 years’ experience in the industry. When it comes to authorities on mortgage broking, they don’t come any more experienced and qualified than Scott.

YCC: What are the advantages of using a mortgage broker?

SE: 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. Our compliance standards are rigorous and good customer outcomes are imperative.

YCC: Do I need to pay a mortgage broker?

SE: No you don’t pay a Mortgage Broker. Mortgage Brokers are paid by the lender. The income or commission they earn does not affect your interest rate. There are instances the rate you receive can be less than what you can obtain by going direct to the lender.

YCC: What loans are you able to assist with?

SE: This list is extensive. I’m able to originate Home Loans, Personal Loans, Residential Loans, Commercial Loans, Car Loans, Leases, Asset Finance, Developments, Construction and many more. Mortgage Broking is about setting the client with the best possible loan making the process seamless and taking away the stress of having to complete the task yourself.

YCC: How many lenders do you work with?

SE: There are over 30 lenders on the panel. Major Banks, smaller non-major Banks, Credit Unions, Building Societies, non-conforming lenders and Mortgage Managers.

YCC: What information do I need to provide to you?

SE: In general terms, the documentation that is required to support an application will include but not be 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. A checklist of information is developed once we have a good idea of what you ‘re circumstance is.

For me, the attraction of using a reputable Mortgage Broker is simple. Unlike the banks, it’s in a Brokers best interests 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 will 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. and much more personal than a faceless big name bank.

If you’d like to know any more about Mortgage Brokers or Conveyancers, drop us a line here. Or, give us a call on (08) 8261 5092.