As with any commission based profession mortgage brokers have a fairly high turnover. Although the engagement of a mortgage broker is considered essential in achieving the best loan product when purchasing a home, choosing the right mortgage broker is just as important when asking "how much can I borrow?". Key considerations when choosing a mortgage broker include:
What are their charges? The majority of mortgage brokers will not require any form of payment from you for their services as they receive their commission from the lender. You should be able to engage a mortgage broker that does not charge you for their services. Mortgage brokers in Perth usually receive payment from the lender in the form of a one-off up front fee as well as ongoing trailer fees paid for a number of years providing you keep your business with that lending institution.
How many lenders does the broker have access to? A mortgage broker should have access to at least twenty different lenders, including banks and non-banks, to have the ability to conduct a thorough analysis when finding the most suitable loan for you and accurately answering your question, how much can I borrow?
Make sure your broker holds an Australian credit licence - Mortgage brokers must be covered by an Australian credit licence. Visit https://connectonline.asic.gov.au/RegistrySearch/faces/landing/ProfessionalRegisters.jspx?_adf.ctrl-state=iaobh1zfr_31 and select the ‘Credit licensee’ register. Type in the family name or organisation and search. You can also contact ASIC’s infoline on 1300 300 630.
What are their charges? The majority of mortgage brokers will not require any form of payment from you for their services as they receive their commission from the lender. You should be able to engage a mortgage broker that does not charge you for their services. Mortgage brokers in Perth usually receive payment from the lender in the form of a one-off up front fee as well as ongoing trailer fees paid for a number of years providing you keep your business with that lending institution.
How many lenders does the broker have access to? A mortgage broker should have access to at least twenty different lenders, including banks and non-banks, to have the ability to conduct a thorough analysis when finding the most suitable loan for you and accurately answering your question, how much can I borrow?
Make sure your broker holds an Australian credit licence - Mortgage brokers must be covered by an Australian credit licence. Visit https://connectonline.asic.gov.au/RegistrySearch/faces/landing/ProfessionalRegisters.jspx?_adf.ctrl-state=iaobh1zfr_31 and select the ‘Credit licensee’ register. Type in the family name or organisation and search. You can also contact ASIC’s infoline on 1300 300 630.
|
Are they an MFAA member? The MFAA represents and lobbies for professional credit advisers, delivers services that support their career paths, and positions them as the professionals of choice in the mortgage and finance industry for both consumers and regulators. Your mortgage broker should be an MFAA member or prove that they are continually developing their services, as the world of lending has an ever-changing landscape.
|
|
Always do some double-checking yourself to satisfy yourself you've been given unbiased and correct information - http://www.yourmortgage.com.au/best-home-loans/ has free comparative tables of rates. Always ask your mortgage broker to justify the interest rate that has been offered to you, and ensure that a Key Facts Sheet is obtained from the lending institution. Click on the Key Facts Sheet link to see more information on key fact sheets and two examples of what they look like.
Ensure your mortgage broker is adequately insured - A mortgage broker should have professional indemnity insurance.
Ensure your mortgage broker is adequately insured - A mortgage broker should have professional indemnity insurance.
Our recommended brokers meet all of the above criteria and are happy to discuss your financing needs.