What does a mortgage broker do?
We are professionals in the home loan industry. We work with you to determine what your borrowing needs are now and what your future plans might be and then recommend the best loans that will help to suit those plans. We help to ensure that you don’t take out a loan that is unsuitable for you and that you get as good a deal as the market place can provide at the time.
Professional mortgage brokers only focus on loans. If you have a toothache, you go to the dentist not a florist. If your car is broken you take it to a mechanic not a librarian. You go to someone trained to help you with your specific need. It’s the same when you need a loan.
Brokers have access to a really wide variety of loans. This means we can find a loan that’s just right for you.
Do you Charge fees for home and investment loans?
As a rule, no.
Some mortgage brokers charge a fee and some don’t. If they are going to charge a fee, they must disclose that up front.
N.B. When you take out a loan via a Mortgage Broker – it does not cost you more. Anything else is a myth. Brokers get paid commission by the bank for bringing new business to them; and this does not impact your rate or level of service in any way, and banks go to a great deal of trouble to make it so because they know that much more than half of their new borrowers come from brokers and they don’t want channel conflict with them.
Banks in fact love doing business with brokers and go to great lengths to promote themselves to us.
We are professionals and often ex bank managers and lenders ourselves, plus the banks don’t have to pay us anything unless we do something for them, so it’s a win-win.
Don’t Brokers just recommend the lender who pays you the most commission?
There is legislation in our industry, called the National Consumer Credit Protection Act (or NCCP), that is designed to protect consumers and ensure ethical and professional standards in the finance industry. We tell you upfront what commission we will be getting from the bank, and show you what all the other banks would pay.
Our job, our only job, is to find the best loan for your personal situation and serviceability.
Isn’t it more expensive to use a Broker?
The costs of the loan are the same, whether you go through a broker or direct to the lender.
How much can I borrow?
This is dependent on how much you have saved for a deposit and what your current expenses are. Give us a call and we can go into your options in more detail, or as a general indication, start with the loan calculator page on our website!
Should I go fixed or variable?
We are only allowed to recommend a product based on what you say is most important to you – for example, “pay my loan off quickly” or “guaranteed repayments”. I do however, live by the following; “if you want flexibility take a variable rate loan, if you want budget certainty take a fixed rate loan, if you want both, then do both”
I’m not in your area, can we still work together?
Absolutely! We are mobile brokers so we can come to you! We are also in a very digital savvy world and the ability to have live video calls is on the rise. Our brokers are more than happy to use Facetime, Skype or any other medium to facilitate the face to face meeting.
Which lenders do you deal with?
We are a Connective Brokers. This means that we are part of one of the biggest and best groups of brokers in Australia, and we have access to lots of lenders including all the major banks, second tier lenders, credit unions and others you have probably never heard of. We can source you a loan from the lender of your choice.
Why should I use a mortgage broker if I can go with a bank?
In short, because you have nothing to lose.
The issue you face as a consumer is ‘which loan is right for me?’ And that is where we come in. If you go direct to the bank, you will only be offered the loan options available through that one lender.
As your mortgage broker, we have access to approximately 40 lenders and all of their loan products. Our sole purpose is to find the right loan for your needs. Even if it works out that the bank you were going to IS the best option for you we can still help by meeting you after hours and doing all the legwork and explaining the settlement papers when they come. It’s a win all round.