When it comes to one of the biggest financial decisions you’ll ever make, it pays to have some professional help. But how do you find a good mortgage broker, and what can they offer? Here’s what to look for.
Suitability Checks
A good broker won’t send off a loan application with guns blazing. Instead, they’ll take the time to assess your financial situation and lifestyle to ensure the loan type and amount you’re seeking is in fact the right loan for you. Many mortgage brokers offer free home loan health checks to determine your financial borrowing capability before embarking on the application process.
Rapport
A winning client-broker relationship is one that makes you feel comfortable, confident and collaborative. This means that a broker will be genuinely interested in your current and future financial situation and loan needs. They should communicate well and be reasonably contactable. They should also be happy to take the time to explain loan jargon such as mortgagee, LMI, LVR and so on.
Smart brokers who are on the ball will also welcome – and encourage – you to ask questions and will be prepared to answer them to the best of their ability.
Training and Education
All mortgage brokers must be sanctioned to provide credit advice by an Australian Credit Licensee holder. However, the mortgage broker you want to be working with seeks to improve his or her qualifications and training by joining associations such as the Mortgage and Finance Association of Australia (MFAA) or Finance Brokers Association of Australia (FBAA), and completing continued education courses from year to year.
Partnerships and products
A good mortgage broker is able to offer apt product solutions due to the extensive panel of lenders and mortgage products available to them. Agents have long standing dealings with a range of creditors. They stay in the know on the latest types of loans available so that they can give their clientele the best answers for their individual circumstances.
Market sector experience
When trying to decide on a broker to go with, look for one who has relevant experience working with the type of borrower you are. Yes, that’s right – this is one instance where it’s okay to make it all about you! Ask your mortgage broker what percentage of previous or current borrowers on their books are first home buyers, investors, commercial borrowers or retirees. Getting an idea of the kind of work they primarily do will give you an idea as to whether they are the right broker for you.
Commissions
Lastly, a mortgage broker should be willing to openly and reliably discuss their fee provisions and the commissions they may receive from moneylenders. This will help you comprehend the process and deliberate the value you are getting from the broker. You may have to demand this info from them, but do find out about their fee structures and compare between advisers to get a good deal. Remember that this shouldn’t be a crucial factor in your choice.
The future
A good loan broker will focus not just on the here and now, but also the future. While your first home loan may be a significant step, it is likely to be the start of your property-purchasing journey, paving the way for your second and perhaps third investment. Therefore it’s wise to weigh up a broker’s initiative about staying connected with you. This could be via phone calls or emails, invitations to property-investment seminars, tips on how to manage your mortgage or reduce your payments, refinancing or other services that he can provide that may interest you in the future.
Finding the right mortgage broker could be all that stands amongst you and your property dream. But by keeping these tips in mind when talking to prospective broker partners, you could be on your way to property mogul-esque triumph sooner rather than later. You really need to make sure that the person you choose to handle the tricky job of financing your new property development is completely above reproach and is a certified name in his industry.
There are many signs of a good one but those things are absent in a good broker, however, if you want a good idea of what a good mortgage broker in Melbourne looks like then just look at how credible their claims of success are over the market average.
