What Does a Mortgage Broker Do and 8 Reasons Why You Should Use One
A mortgage broker doesn’t physically lend you money, the role of a broker is to aid borrowers in finding an appropriate loan, based on the borrowers specific requirements.
Brokers have a panel of lenders from which they recommend a loan. They have to become accredited with the lender to offer their products, and are required to keep up-to-date with their latest offers.
The loan you choose from a broker is the same loan a bank, building society, non-bank or credit union would offer you the borrower, directly.
Most brokers don’t charge fees for residential loans, the lender pays a commission, and this does not affect the kind of loan or the interest rate you receive.
A Mortgage broker must have all of the following to be able to give credit assistance:
- keep up an Australian Credit Licence or be an appointed Credit Representative of an Australian Credit Licence Holder.
- keep up a Diploma of Financial sets (Finance/Mortgage Broking Management).
- unprotected to 30 hours per year of Continuing specialized Development (CPD).
- keep up specialized Indemnity Insurance.
- continue an Internal argument Resolution procedure & register.
- keep up External argument Resolution membership.
- keep up Industry Body membership.
- Fully disclose all commissions.
So now you know what a mortgage broker is, the following are 8 great reasons why using a broker for your next home loan may well be the smartest move to take.
Save you time
The choices obtainable in the mortgage market can seem limitless and completely overwhelming. You can choose to research the subject, the lenders and their products yourself, or work with a broker, who already has that knowledge.
Save you money
Only use a broker that offers a free service, comparing hundreds of different home loans from various lenders, making it easier to find if there is a better home loan for you. All you have to do is ask your broker.
Give you choice
A good mortgage broker has a panel of over 30 Lenders and over 600 different loan types from which to choose.
Find the right loan
The best deal is not necessarily the cheapest rate. Your broker will look at your circumstances and future plans in-thoroughness, this enables them to recommend a loan that is right for you. Having an appropriate loan which works for you can help you build wealth.
Help you avoid pitfalls
Many products seem to offer a great deal but they could have penalties, fees and charges you aren’t aware of. Or, they may not offer the flexibility you need in the future. Your broker can help you avoid taking out a loan you might later regret.
They come to you
Brokers come to you, appointments are conducted in the comfort of your own home, or your office, at a time that suits you, days, evenings or weekends.
Do all the leg work
Your broker will prepare your application, submit your application and work with the lender throughout the time of action up to settlement.
And after settlement
This is where it all counts, your mortgage broker should continue their service after settlement of your loan with regular updates and reviews of your circumstances, your aims and goals can change and your loan needs may also change.