What is a Mortgage Broker?
A Mortgage Broker is a ‘third party’ person who helps facilitate a mortgage between a borrower and a lender.
A Mortgage Broker acts as an intermediary between the client and the lender to negotiate a loan for the purchase of property, refinancing existing loans, debt consolidation and the like.
In the competitive mortgage market and with so many home loans available today, a Mortgage Broker will guide you through the mortgage maze and help select the best loan product for you, taking all aspects into consideration, ie. Budget, future plans, lifestyle etc.
The fundamental difference between Mortgage Brokers and loan officers at lending institutions is the latter can only offer their clients the loans offered by their institution or lender.
A Mortgage Broker should have access to over 20 lenders who offer a wide range of loan options which they will research to find the loan which best suits the client.
A Mortgage Broker should work closely with you in preparing the loan documentation, submitting the application & liaising with both you & the lender through the loan process all the way to settlement.
A Mortgage Broker will be a valuable resource when looking to obtain finance for one of the biggest purchases you are likely to make. While using a Mortgage Broker can result in substantial savings in time and money for borrowers, choosing the "right" Mortgage Broker is the key.
Checklist for Choosing a Broker:
- A Full-time Mortgage Specialist
- A Member of the Mortgage and Finance Association of Australia
- Part of a reputable company with support and professional training
- Happy to disclose fees and commissions
- Covered by Professional Indemnity Insurance
- Have access to a broad panel of Financial Institutions (20+)
- Have specialist software to compare home loan products, qualify borrowing power and electronically submit loan applications to Lenders
- Have a detailed customer charter setting out how they work.