Trusting someone to guide you in ﬁnancial decisions is not something to be taken lightly. Finding the right mortgage broker who you are comfortable with, who puts you and your family's best interests ﬁrst could make a huge diﬀerence to your ﬁnancial freedom and your future.
After all, even the slightest variation in mortgage interest rates could mean paying thousands more over the course of your loan - so it's crucial to take the right steps early on.
So, you may be wondering what factors you need to consider when ﬁnding the perfect ﬁt. We recommend looking into the following criteria;
Don’t be afraid to ask a broker what qualiﬁcations and experience they have.
The ﬁrst box to tick is ensuring they hold an Australian Credit Licence or are qualiﬁed to act as an authorised credit representative
Mortgage brokers require a Certiﬁcate IV in Finance and Mortgage Broking in order to get their foot in the door.
Few mortgage brokers are also qualified accountants (just like us). Having accounting qualification with finance helps them to understand the complete financial situation to structure the loans correctly
It can be a good idea to ﬁnd a broker work experience, have they dealt with the scenarios that you are willing to get finance for. Brokers could be specialised in residential loan or commercial loans or car loans or development finance or smsf finance.
Brokers are usually paid upfront and trail commissions from lenders.
Few big brand brokers are owned by one of big banks. It's logical to ask them who are they owned by or are they independent.
Brokers have access to a lender panel - a restricted list of lenders they have access to.
Brokers accredited with multiple lenders and bigger panel can compare a bigger pool of lenders to provide the lender that is in your best interest
In order to earn the title of a home loan expert, a good broker should provide you with a home loan comparison in writing.
This should clearly detail all options at your disposal, including interest rates, fees and other key information.
Your broker should also provide you with an explanation of why they are presenting a particular loan to you, and you should have peace of mind that there is no conﬂict of interest present.
Whilst interest rates have a huge impact on the amount of money you need to pay over the life of your loan, some people would be surprised to learn that this should not be the only factor in your decision-making process.
There may be other facilities you require, such as redraw, the ability to make extra repayments, or linking an oﬀset account to your mortgage or an existing cashback offer.
You deserve a broker who takes all of your personal circumstances into consideration and who truly strives for the best ﬁtting loan for you.
Their service should be able to explain you which structure and strategy to adopt such as - interest only loan or principal and interest, fixed vs variable, redraw or offset accounts, accessing equity vs using cash, explaining good debt vs bad debt, debt recycling strategies
This is an important factor in choosing a mortgage broker. Ideally, you don’t want someone who knows how to “talk the talk”,who signs you up and then leaves you to fend for yourself. Buying a house is a big step, and it’s both an emotional and a ﬁnancial journey - so you need someone who provides support and clarity all the way through the process, and makes themselves available to answer all your burning questions.
Don’t be afraid to take your time, shop around and do your research. Stepping into the exciting world of taking out a mortgage and purchasing a home is such a huge commitment and it’s important to think of your future, and putting yourself and your family in the best ﬁnancial situation possible.
The ACCC has discovered that renegotiating your mortgage terms with your lender can save you upwards of $850 per year for an average sized mortgage - which translates to tens of thousands of dollars over the loan’s lifetime