On the hunt for the perfect match when it comes to choosing a mortgage broker? Before settling on your winner, be sure to ask them these questions first.
As of 2020, 6 in 10 Australians used a mortgage broker to assist them in acquiring a home loan to purchase property – the highest that it has ever been. What’s more is that 90% of these customers reported that they were happy with the services provided to them. If the feedback is that good, then why aren’t more Aussies using one?
Since purchasing a home is not an everyday purchase for most Australians, navigating the many options can be overwhelming. Thus, many applicants stick with their everyday banking provider instead of taking the leap to explore other options when it comes to finance for a property.
Unfortunately, what this translates to is that buyers only receive information about their specific bank’s range of products which may not be the most suitable fit for them. In comparison, a mortgage broker has access to a wide variety of home loan options, and it is quite literally their job to find you the best match to suit your individual circumstances – they work for you, and not the banks. However, not all mortgage brokers were created equally so it is important for consumers to do their own research when it comes to enlisting one.
Finding the Perfect Mortgage Broker Match
The role of a mortgage broker is to act as an intermediary, who navigates home loan products and their applicable terms on behalf of individuals or businesses. They serve as the “middleman” between the lender and the borrower and handle the time-consuming process of securing the loan and gathering the considerable paperwork involved.
A mortgage broker usually operates as a small or medium size business and are usually very “hands on” with the entire process both on behalf of their customers, and with their customers. When weighing up your options on mortgage brokers in your area, be sure to ask the mortgage broker the following questions:
- Are you a member of the Mortgage Finance Association of Australia (MFAA) or Finance Brokers Association of Australia (FBAA)?
- Do you have your own Credit License or are you a Credit Representative?
- Do you have any public testimonials or reviews that I can see about your business?
- Do you charge a brokerage fee for getting my finance approved?
- Looking at my finances, how much will I be able to comfortably borrow?
- Based on my borrowing capacity, how much can I expect for my monthly repayments?
- Am I eligible for any Federal or State Government assistance and how do I apply?
- What is the minimum deposit required?
- How long will it take to get a pre-approval to start house hunting?
- Based on my situation, what do you think is the most suitable loan type or structure for me?
- What interest rate can you offer me?
- Are there any ways I could achieve a better interest rate?
- Will I need Lender’s Mortgage Insurance (LMI)?
- Can you outline what other costs or fees that I need to budget for?
- Why are you recommending a specific loan product?
- Is there anything else I should be doing to put myself in a good position to get my loan approved?
Any reputable operator will not only be happy to answer any queries you may have but should ideally be able to answer questions much like the above before you even think to ask them.
Get The Right Advice the First Time
With a background in banking, finance, business development and project management, there’s no better advocate to have on your team than Nikki Berzin. As a fully qualified mortgage broker and director of Cherry Lending & Finance, Nikki is passionate about all things finance, and empowering her clients with the tools to hit their property goals is what she does best.
If you’re looking to get into your first home, purchase an investment property or even want to look at your options for refinancing, the first step is starting the conversation. Get in touch with Nikki today, or call her directly on 0427 374 155 to bring your mortgage dreams to life.
Disclaimer: Your full financial needs and requirements need to be assessed prior to any offer or acceptance of a loan product. Subject to lenders terms and conditions, fees and charges and eligibility apply.