| mortgage broker, mortgage | 27 Mar 2008 12:00 AM |
| Mortgage Brokers by Michelle Kour | |
As we are swamped with choice when in comes to mortgage products in today’s market, deciding on a home loan in Australia can be a huge task. A mortgage broker can ease the pain and save you time by narrowing down your options for loan products that are most suitable for you. A mortgage broker should know what you need from you loan, for now and in the future and then offer you the best products available on the market to meet your needs. Sounds simple? Well it can be. Your mortgage broker should have access to a large number of mortgage lenders, they will sift through these home loan products to save you the time and hassle to locate the ideal mortgage product to suit your needs.
Once the mortgage broker has identified the right loan for you they will then arrange the mortgage application, collating all the supporting information required by the lender and then submitting for approval. Your mortgage broker should follow your loan right through until settlement. This includes following up on the conditional and then formal approval, ensuring mortgage documents are prepared and delivered, then completed and returned and the loan is settled in a timely manner. They should ensure everything is running smoothly and deal with any possible ‘hiccups’ on your behalf. As mortgage brokers should know exactly what is required with the application and will often have a close relationship with the lender, the approval process may even be quicker through your broker than dealing with the bank direct.
So a mortgage broker can make you life easier when searching for that perfect home loan, but there are so many mortgage brokers out there how do you choose one? Well there are a few simple steps to take to ensure you mortgage broker is reputable and reliable:
1. Check the qualifications and experience of your mortgage broker. Are they a member MFAA - Mortgage & Finance Association of Australia? This shows the broker has industry training, should abide by the association's code of practice and is covered by the Mortgage Industry Ombudsman Scheme
2. They should have a wide range of products available from a wide variety of different mortgage lenders, including banks and mortgage managers.
3. They should take their time to ensure they understand your situation and know exactly what you are after.
4. Your mortgage broker should disclose the commissions paid to them by the banks (ensure their product recommendation is not swayed by higher commissions offered by certain lenders)
5. Does the mortgage broker charge a brokerage fee? Most should not as they are already receiving a commission from the lender when your loan settles.
6. A personal recommendation from family or friends is often one of the best indicators of quality service.
So with these pointers in mind rather than going cross eyed sifting through loan product after loan product and weighing up the pros and cons of everything out there, why not look up a mortgage broker to do the hard work for you? As the product costs, features and rates offered on their loan products will be identical to those that you would obtain if you went directly to the bank – why not benefit from their expertise and mortgage industry knowledge?
Once the mortgage broker has identified the right loan for you they will then arrange the mortgage application, collating all the supporting information required by the lender and then submitting for approval. Your mortgage broker should follow your loan right through until settlement. This includes following up on the conditional and then formal approval, ensuring mortgage documents are prepared and delivered, then completed and returned and the loan is settled in a timely manner. They should ensure everything is running smoothly and deal with any possible ‘hiccups’ on your behalf. As mortgage brokers should know exactly what is required with the application and will often have a close relationship with the lender, the approval process may even be quicker through your broker than dealing with the bank direct.
So a mortgage broker can make you life easier when searching for that perfect home loan, but there are so many mortgage brokers out there how do you choose one? Well there are a few simple steps to take to ensure you mortgage broker is reputable and reliable:
1. Check the qualifications and experience of your mortgage broker. Are they a member MFAA - Mortgage & Finance Association of Australia? This shows the broker has industry training, should abide by the association's code of practice and is covered by the Mortgage Industry Ombudsman Scheme
2. They should have a wide range of products available from a wide variety of different mortgage lenders, including banks and mortgage managers.
3. They should take their time to ensure they understand your situation and know exactly what you are after.
4. Your mortgage broker should disclose the commissions paid to them by the banks (ensure their product recommendation is not swayed by higher commissions offered by certain lenders)
5. Does the mortgage broker charge a brokerage fee? Most should not as they are already receiving a commission from the lender when your loan settles.
6. A personal recommendation from family or friends is often one of the best indicators of quality service.
So with these pointers in mind rather than going cross eyed sifting through loan product after loan product and weighing up the pros and cons of everything out there, why not look up a mortgage broker to do the hard work for you? As the product costs, features and rates offered on their loan products will be identical to those that you would obtain if you went directly to the bank – why not benefit from their expertise and mortgage industry knowledge?
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