Getting a mortgage is not an easy process. The entire journey of shopping for the best lender, complying with all the requirements, negotiating, and closing the deal can be tricky to accomplish by yourself.
Because of this, hiring the service of a mortgage broker can help you secure a loan that best suits your needs and perform all the legwork. In return, a broker is paid in commissions by the financial institution that lends you money.
That said, it all starts with looking for the right mortgage broker. Here are four tips to help you find the best broker for your mortgage hunt. Need to know WHY you should use a mortgage broker ? See our guide here.
When it comes to looking for a broker, preparation is the key. This means that you have to do your homework before hunting. Look for potential loans online and get a clear idea of the type of loan you want. Assess your home and mortgage needs and align them with what type of broker you’re looking for. Prepare a list of questions to ask from prospects and seek various recommendations from them. Being prepared can put you on the right track in choosing the right candidate.
It’s important to know how a mortgage broker gets paid. Doing so will help you be confident in hiring the service of a mortgage broker. Typically, most brokers get paid commissions directly from the banks for arranging their loans. There are two types of commission: upfront and trail commission. The first is a percentage of the total value of the loan paid upfront, while the latter is a percentage of the mortgage that brokers will receive over the life of the loan.
The next thing to do is to check the experiences and evaluate the qualifications of your prospects. First, make sure that the broker is authorized to provide you with a loan, where they should have their Australian Credit License. Second, check their background by asking their educational attainment and broker certifications. Lastly, check out the broker’s extensive experiences in handling mortgages for various clients. Qualified brokers are usually members of the Mortgage & Finance Association of Australia (a professional association for brokers). Some will have a diploma while others have a degree in finance, economics, or accounting.
Make sure to ask the broker for their lender panel and ownership structure. First, brokers are restricted by the list of banks they can access known as “lender panel.” A good broker will have a wide range of lenders on their panel. Second, make sure to ask your broker who is their aggregator Chances are, the broker is assisted by an aggregator. Good brokers won’t easily be influenced by their ownership structure and will recommend wide loan options from across the market.
A broker can be a great help in obtaining a mortgage and doing a lot of the legwork. As mentioned above, be prepared to shop around for a broker and look for one with experience beyond the minimum qualifications required to practice. Consider the broker’s lender panel and ownership structure. All these will help you choose the right mortgage broker.
If you’re looking for a mortgage broker in Australia, get in touch with Highline Lending to see how we can help! We have many years of experience in helping our clients find an appropriate loan for their needs, and we would be more than happy to guide you through the process.
Contact us on 02 8530 1107 or Submit your scenario online
Whether you’re a first home buyer looking at entering the market or an existing home owner looking at ways to save money on your home loan, we have you covered. We’ve put hundreds of hours of research into these guides to ensure you end up ahead, and it’s completely on the house.
We meet for a consultation, obtain your supporting documents and proceed to structure and package your application for approval knowing exactly what the banks want to see. We also monitor your home loan post approval ensuring you’re home loan suits you and your financial position
We get paid a commission from our lenders as a result of introducing your business to them. Subsequently, our service is at no cost to you. Our commission does not affect your interest rate whatsoever, if anything, we’re in a position to get you a lower interest rate than the general public due to our relationships with our banks
With our many years experience in the industry, we’ve been exposed to both easy and complex loan scenarios. Each loan we process gets presented to over sixty financial institutions, ensuring we have explored all options possible and are able to provide a solution
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In short, comparison rates determine what your loan will really cost you. They save you from the hard work required to compare and determine the costs of different loans. However, keep in mind that they shouldn’t be the deciding factor when you search for a loan.
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The odds are that you’ve stumbled across the term lender’s mortgage insurance and you’re wondering what it stands for. Well, you’ve come to the right place. This article will clarify this term, so that you can understand what it is, the concept behind it and the approximate costs. Let’s get started!
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