Being in the mortgage business in Australia for quite some time, we have often observed that loan seekers are often confused about the choice of mortgage brokers. As we cannot claim that we are the only genuine mortgage brokers in the market, but we can definitely guide you about ways to find the right one for you It is critical to protect your interests when choosing a mortgage broker in Australia for your home
loan or other financial products by finding one who is honest and professional.
In this article, we will explain four key characteristics to look for. Try to get an answer to the following questions. If you can find a satisfactory answer, then you are on the right track. The questions are as follows-
You need to choose a mortgage broker who receives the same commission rate irrespective of the
lender or product you opt for.
That way, you know the broker is recommending the best product for your needs, not
the one with the highest commission.
A good broker will be open about how they are compensated and any referral fee they may pay for you being introduced to them as a potential client.
Importantly, if you believe a broker is pressuring you to borrow more than you need or
are comfortable with, this could be a red flag that you should take your business
elsewhere. We as professionals don’t believe in imposing any kind of pressure on anyone.
Always seek a broker with an Australian Credit Licence or Credit Representative status, as required by the Australian Securities and Investments Commission (ASIC). Ask your broker if they are a member of the industry body, the Mortgage, and Finance
Association of Australia (MFAA).
Members are subject to a strict code of conduct imposed by the MFAA. It is worth mentioning that we do have the necessary license and authority to be in the trade.
A mortgage broker who claims to be a home loan expert should provide you with a
written comparison of loan options that includes the interest rate, features, and fees of
Furthermore, your broker should explain why they are recommending a specific loan(s)
to you – and you should feel confident that there is no conflict of interest.
In other words, the lender and product, not the broker, are best for you.
A good mortgage broker will always provide you with a plethora of lenders to select from. That includes banks, non-banks, and building societies as well.
This initial service should be accompanied by clear explanations of how the loan
application process works from inquiry to settlement, as well as the level of support
provided by your broker at each stage. We also don’t believe in keeping our highly esteemed clients in the dark. If you need a loan, then it is your legal right to know about the entire procedure.
Make sure to inquire about this.
Will the advice you receive from the broker be free of charge, aside from the standard
lender application fees?
Can the broker explain why they charge an upfront fee for service? Also, other brokers may charge a fee if you switch loans within a certain timeframe.
This is definitely something to look into. We feel that it is our responsibility to clarify things about all the brokerage charges and consultations at the very outset. The bottom line is that no one should feel that he or she was under-informed!
We hope that the above-mentioned tips were good enough for you to choose a mortgage broker. Feel free to get in touch with us as we will connect you with the best Australian mortgage lenders. Your dream loan is not a distant dream anymore.