| mortgage broker, mortgage | 27 Mar 2008 12:00 AM |
| Why use a Mortgage Broker? by Michelle Kour | |
If you are shopping around for a home loan, then you may want to consider using a mortgage broker.
Mortgage Brokers will compare loans and help you find the right home loan product for your circumstances. Mortgage Brokers help families establish home loans to buy their own homes, investors to expand their property portfolios and business people to develop better and often more tax effective finance structures.
A mortgage broker can save you time and offer expert advice, and what’s more, the services of mortgage brokers in NSW are usually free. Mortgage brokers make their money from commissions as the lender pays the broker fees or commissions for placing your business with them. Just as if you were dealing with a bank manager or lender, these fees do not change the interest rate you pay on a home loan. Mortgage brokers effectively promote the lender without the need for that lender carrying the traditional overheads such as staff and branch networks. This can be of great savings for those lenders who do not operate a branch as they can partly rely on mortgage brokers to sell their products.
When deciding on which mortgage broker you will use, seek confirmation on the following:
1. that they have access to a wide range of lenders including both banks and non banks or mortgage managers. This ensures that the products being offered are not limited to just one or two lenders with whom the mortgage broker has an established relationship. Quite often mortgage brokers find it easier to “sell” a recognised lender, generally one of the major banks, as opposed to making you aware of better product that may be available through a less well known lender but nevertheless excellent mortgage provider in the market.
2. that they provide you with a copy of a Finance Broker Agreement which sets out the terms of the services offered.
3. that as noted below you make sure that the mortgage broker who you deal with is an accredited mortgage consultant with the Mortgage Finance Association of Australia – this ensures that if you have any dispute with the mortgage broker you can access a free ASIC-approved independent dispute resolution service to resolve the issue.
Almost half of Australian home buyers are now using a Mortgage Broker to find them the best home loan. Mortgage Brokers can access a greater range of mortgage options in NSW and Australia wide and have the ability to negotiate a better deal with lenders. Mortgage Brokers can often save you upfront fees or strike a better interest rate that may not be advertised. A mortgage broker offers loans from a panel of financial institutions, including banks and non-banks. In Australia there are countless lenders with an array of loan products that were not traditionally available in the past and competition amongst lenders for customers is fierce with new home loan products available every day.
Mortgage Brokers cater for all borrowers including first home buyers, self employed and business people, retirees, non residents, new Australians, bad or poor credit history and previous bankrupts.
Finally, when choosing a Mortgage Broker it is important that your Broker is a member of the Mortgage & Finance Association of Australia (MFAA). The MFAA is an organisation that regulates and applies industry standards to its members and has a defined complaints process.
Mortgage Brokers will compare loans and help you find the right home loan product for your circumstances. Mortgage Brokers help families establish home loans to buy their own homes, investors to expand their property portfolios and business people to develop better and often more tax effective finance structures.
A mortgage broker can save you time and offer expert advice, and what’s more, the services of mortgage brokers in NSW are usually free. Mortgage brokers make their money from commissions as the lender pays the broker fees or commissions for placing your business with them. Just as if you were dealing with a bank manager or lender, these fees do not change the interest rate you pay on a home loan. Mortgage brokers effectively promote the lender without the need for that lender carrying the traditional overheads such as staff and branch networks. This can be of great savings for those lenders who do not operate a branch as they can partly rely on mortgage brokers to sell their products.
When deciding on which mortgage broker you will use, seek confirmation on the following:
1. that they have access to a wide range of lenders including both banks and non banks or mortgage managers. This ensures that the products being offered are not limited to just one or two lenders with whom the mortgage broker has an established relationship. Quite often mortgage brokers find it easier to “sell” a recognised lender, generally one of the major banks, as opposed to making you aware of better product that may be available through a less well known lender but nevertheless excellent mortgage provider in the market.
2. that they provide you with a copy of a Finance Broker Agreement which sets out the terms of the services offered.
3. that as noted below you make sure that the mortgage broker who you deal with is an accredited mortgage consultant with the Mortgage Finance Association of Australia – this ensures that if you have any dispute with the mortgage broker you can access a free ASIC-approved independent dispute resolution service to resolve the issue.
Almost half of Australian home buyers are now using a Mortgage Broker to find them the best home loan. Mortgage Brokers can access a greater range of mortgage options in NSW and Australia wide and have the ability to negotiate a better deal with lenders. Mortgage Brokers can often save you upfront fees or strike a better interest rate that may not be advertised. A mortgage broker offers loans from a panel of financial institutions, including banks and non-banks. In Australia there are countless lenders with an array of loan products that were not traditionally available in the past and competition amongst lenders for customers is fierce with new home loan products available every day.
Mortgage Brokers cater for all borrowers including first home buyers, self employed and business people, retirees, non residents, new Australians, bad or poor credit history and previous bankrupts.
Finally, when choosing a Mortgage Broker it is important that your Broker is a member of the Mortgage & Finance Association of Australia (MFAA). The MFAA is an organisation that regulates and applies industry standards to its members and has a defined complaints process.
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