What is the best way to choose your mortgage broker?
Oct 21, 2016
Using a mortgage broker can make it easier to find a home loan suited to your needs, but it’s important to know whether your broker has the experience and credentials to help you make the right decision. Here are Choice Home Loans’ top tips for finding your ideal mortgage broker.
Follow word of mouth
These days, you can find reviews of almost everything online, but with so many opinions it can be difficult to work out which broker will provide the best service. The easiest way can be to talk to your friends and family.
By comparing the firsthand experiences of people you know and trust, it will be easier to come to a decision about which broker to use. If someone you know is willing to vouch for their broker, have a good chat with them about why this is the case, and whether they will be a good fit for you.
Research your broker’s experience
It’s a good idea to find out how long your mortgage broker has been in business when you’re initially consulting with them. Don’t be shy about asking a broker about their history. More experienced brokers sometimes have stronger relationships with lenders and know about products that aren’t widely advertised, which can affect the total amount you’ll pay for your home loan.
Bodies like the MFAA (Mortgage & Finance Association of Australia) regulate their membership and perform checks to make sure mortgage brokers have the correct certifications. If your broker is a member of a body like this, you can assume they are fairly knowledgeable about the industry.
Examine the broker’s lender panel
While you’re deciding between brokers, ask which different lenders are on their lender panels. Confirm that they are offering you a variety of lender options rather than pushing you towards a specific lender.
A good mortgage broker may have their preferred partners, but they will always offer you a range of lenders to choose from. If your broker is not doing this, you could be missing out on a more appropriate home loan from another lender.
Talk about their commission
Brokers work on different commission structures with each lender, so before you make any decisions, ask your broker how much commission they receive for each loan.
Find out about any hidden costs
Home loan packages often start with low fees for the first few years, but can contain hidden costs later on. Your broker should give you all the information you need to make a good long-term decision, and should not be vague on the specific details of the loan. Make sure you ask about any additional costs associated with the loan.
You should also ask about your broker’s own payment. While a lot of brokers earn their money on commission only, some also charge up-front fees. Your mortgage broker should be able to give you a written record of any and all costs you’ll have to pay when you start working with them so there won’t be any nasty surprises at the end.
Get the right advice
If you’re looking for advice and someone to help you select the right home loan for your circumstances, Choice Home Loans is the place for you. Our knowledgeable and experienced brokers can help give you the trusted advice you need. They work with dozens of lenders to ensure you’re getting the most appropriate home loan for your financial needs and goals.
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