The Shocking Truth About Mortgage Brokers

Choosing the right mortgage broker that will help you get the right home loan, can mean the difference between thousands of dollars in your pocket, or the banks.

Quite simply, finding a good reputable mortgage broker can literally save you a huge amount of money on your next home loan.

Unfortunately some mortgage brokers will decide what’s best for them, as commission percentages vary across their network of lenders. Usually brokers will receive a small percentage from the lender, as a referring commission and it’s all too common for sharks to be in the industry circling for their next easy prey.

Don’t be fooled into taking the first loan option a broker presents you. You would want to get at least the top 3 options that meet your criteria, and ask the broker how these options best suit your requirements.

So with over 1800 home loans options on the market, we find out first hand the overwhelming decision means you’re probably going to consult with a mortgage broker. But how do your find a good one?

Look For Referrals

Redland Bay mortgage broker Mark Gregg says, “When you’re looking around for a reputable broker, ask your closest family & friends first. It would be uncommon if no –one close to you hadn’t dealt with a broker recently.”

“Client leads for mortgage brokers is very much aligned around referrals from friends and close family”

Consult With Multiple Mortgage Brokers

Making a purchasing decision involves learning what solutions the service provider can deliver you. It’s not uncommon to shop around for our everyday items, and that should also be the case when it comes to choosing a broker.

Test out & contact multiple brokers from the ones referred to you, and also by performing an online search for you’re nearest local brokers.

“Our surveys suggest that typically our clients have consulted with two to three different people before they make a commitment on moving forward with a loan application,” says Mark.

“It’s a process most people feel they need to do, to really get to know who they re dealing with, and whether or not they are there to listen to their needs.”

Mark also went onto say “align yourselves with a broker that is highly responsive, has a positive reputation, shows a real understanding of the finance industry and is up to date with all the latest loan products being offered.”

Make Sure Your Broker Has The Required Accreditations

It’s alarming to note how many brokers are doing business whilst not holding the relevant accreditations. Performing your own due-diligence will assure your dealing with a legitimate broker.

Things to look at include:
• Do they hold formal qualifications? (Cert IV in Finance & Mortgage Broking – minimum requirement)
• Are they a member of a professional Association? (Mortgage Industry Associations such as MFAA and FBAA)
• Do they have lender accreditations? (This includes being a member of a Aggregation / Dealer Group)
• Do they hold an Australian Credit Licence (ACL)

Perform Your Due-diligence

Making sure you tick off these tips on finding a reputable mortgage broker will give you peace of mind they will act on your behalf with your interests at first hand.

An expert mortgage broker should provide you with the necessary information to allow you in making an informed decision on a loan. They should facilitate a smooth transaction with little involvement from you.

As brokers will have access to a wide range of loan products, it is their task to find you the most appropriate loan that suits your circumstances.

Redland Bay mortgage broker Mark, summarises his profession by saying “Good brokers will follow the process of providing you an appropriate loan, seeking approval on your behalf and minimise the involvement of legal work & settlement hassles.”

For more information, check out the Mortgage & Finance Association of Australia website, or learn more from this video.

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