Mortgage Brokers are becoming more and more prevalent nowadays and I believe this is due to two reasons:
First being people are time poor between the job, the family, the social schedule – it all seems too much. By the time we are finished all this, we don’t have time to visit every bank, compare interest rates and decipher all the jargon that comes with it.
And second, we need an expert who can help us filter through all the options and provide us with a simple set of choices that allow us to feel confident in the fact that we are getting a product and a service that is suited to our needs.
When you’re new to the market and looking to attain your first mortgage, the world of finance can be a dark and scary place of mystery and confusion. A good mortgage broker should be able to take your hand and guide you through it – thus, taking away that fear or discomfort.
The most common concern for new buyers is making sure the rate is the cheapest. However, like most things, the cheapest product is not always the best for us.
The first decision to make is whether you are going to approach your lender directly or use a mortgage broker.
A broker acts as the intermediary between you and your choice of bank / lender. It is their role to assist you to fill out any paperwork, negotiate the best deals on the market and be available to answer any questions you may have about your mortgage or any part of the home loan application process.
Finding a mortgage broker is easy – but finding a mortgage broker who works well with you and someone you can feel comfortable with – that’s the tricky part!
There are many different types of brokers – those that will take a vested interest in ensuring you are being looked after and those that are purely looking for quick turnarounds while doing the least possible work.
Let’s make sure you are being looked after correctly by a qualified and personable mortgage broker. I have listed some questions below to ask your broker:
- Why should I use a mortgage broker rather than going straight to my bank?
- How much experience do you have as a mortgage broker?
- 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 offer a range of different lenders?
- How do we decide which loan is best suited to my personal situation?
- How much of a deposit do I really need to obtain a loan?
- What impact will my credit card limits have on my borrowing capacity?
- If I have a default on my Credit Report will this impact on my ability to obtain a loan?
- What is a comparison rate?
- Can you explain to me what Lenders Mortgage Insurance is for?
- What fees will I incur when taking out a home loan?
- What features are included in my new loan?
- What information do I need to provide you to obtain my finance?
- What are the procedures that I need to follow in order to obtain my finance and settle my loan?
- If I choose to take out a fixed interest rate can I choose to lock my fixed interest rate in prior to settlement?
- Can I choose to fix my interest rate in at a later stage?
- Will you process the First Home Owner’s Grant for me?
- How long will it take for you to obtain the appropriate finance for my needs?
- Do you charge a brokerage fee for getting my finance approved?
- What commissions do you get paid for writing my loan?
With interest rates at their lowest for over 50 years, there are some great rates available to you as a customer. The best thing to do is to compare rates from all the lenders and the easiest way to do that is with your own personal Mortgage Broker.