Approaching a mortgage broker to help you find a suitable loan can save you time and money.
Mortgage brokers:
- Understand your financial situation and advise you on affordability, borrowing capacity and structuring of your loan
- Are able to recommend products suitable to your situation from across a panel of 20 to 30 lenders (and, along with that, communicate to you the most competitive rates on the market)
- Explain each step of the loan process
- Will be a consistent contact person throughout the process and a key liaison between the other professionals involved, such as solicitors and valuation experts
- Assist you with the loan application and guide you through the paperwork, which can be confusing
- Help you to respond to questions from lenders and resolve any unforeseen issues that come up during the lender’s review process
- Understand and can help you navigate each lender’s policies
- Are free to you and receive a commission from the lender that you choose
Banks:
- Will allocate you to a bank employee (a bank loan officer), who will recommend products with that lender (i.e. you could miss out on a more competitive product offered through a different lender)
- Are large institutions that may pass you around to different people
- Bank loan officers often receive incentive-based remuneration
Application fees and interest rates are dependent on each lender and will not change if you go with a mortgage broker as opposed to approaching a lender directly. A good mortgage broker can actually advocate a better rate for you, as lenders feel greater competitive pressure.
What should I look for in a mortgage broker?
There are many mortgage brokers out there, and it is important to choose someone trusted and who will prioritise your needs.
Here are a few attributes that we recommend you look for:
- Ensure your mortgage broker has the appropriate accreditations (i.e. is part of one of the professional bodies, such as FBAA or MFAA)
- Strong reputation and experience
- Clear communication, explaining why recommended products have been chosen
- Responsiveness to your questions