WHAT DOES A MORTGAGE BROKER DO?
Mortgage brokers are professionals in the home loan industry. They work with you to determine your borrowing needs and how much you can borrow. Brokers help to ensure that you don’t take out a loan that is not right for you. Professional mortgage brokers only focus on loans and on helping you to select and use the right financial products to grow your wealth. Like your solicitor, dentist or plumber, we are specialists in what we do and will provide you with the right solutions. Brokers have access to a wide variety of loans. This means your broker can find a loan that’s just right for you.
DO YOU CHARGE FEES FOR HOME AND INVESTMENT LOANS?
Some mortgage brokers charge a fee and some don’t. When you take out a loan via a Mortgage Broker – it does not cost you more. That is an absolute myth. Brokers get paid commission by the bank for bringing new business to them, this does not impact your rate or level of service. Some brokers charge a fee for their service. They must disclose this fee upfront to you so you know what you will be up for if you engage their services.
DON’T YOU JUST RECOMMEND THE LENDER WHO PAYS YOU THE MOST COMMISSION?
Absolutely not. First of all, there is very little difference between the commissions paid by the various lenders. There is also legislation in our industry, called the National Consumer Credit Protection Act (or NCCP), that is designed to protect consumers and ensure ethical and professional standards in the finance industry. We tell you upfront what commission we will be getting from the bank. Our job, our only job, is to find the best loan for your needs and serviceability.
ISN’T IT MORE EXPENSIVE TO USE A BROKER?
Some Brokers charge a fee for their service which they must disclose to you up-front before you engage their services. However, the costs of the loan are the same, depending on the loan you choose.
HOW MUCH CAN I BORROW?
This is dependent on how much you have saved for a deposit and what you current expenses are. Give us a call and we can go into your options in more detail.
SHOULD I GO FIXED OR VARIABLE?
A mortgage broker is only allowed to recommend a product based on what you say is most important to you – for example, “pay my loan off quickly” or “guaranteed repayments”. We do however, live by the following; “if you want flexibility take a variable rate loan, if you want budget certainty take a fixed rate loan, if you want both, then do both.” I
AM NOT IN YOUR AREA, CAN WE STILL WORK TOGETHER?
Sure thing! We are mobile brokers so we can come to you.
WHICH LENDERS DO YOU DEAL WITH?
We are Connective Brokers. This means that we have access to many lenders – these include the major banks, second tier lenders and credit unions. We can source you a loan from the lender of your choice.
WHO SETS INTEREST RATES?
The Reserve Bank of Australia meet on the first Tuesday every month to determine the official cash rate for the country. The lenders then use this information to set their own rates. Mortgage brokers do not set rates.
WHY SHOULD I USE A MORTGAGE BROKER IF I CAN GO WITH A BANK?
Banks will only sell you their own products. When we talk about a ‘loan product’ as your mortgage broker, we are referring to the thousands of options that are currently available for you for your loan. Each bank (or lender) has loads of different loan options – low doc, package loans, re-draw facilities, plant and equipment loans, fixed, interest only, interested in advance, variable, introductory variable… the issues you face as a consumer is ‘which loan is right for me?’ And that is where a mortgage broker comes in. If you go direct to the bank, you will only be offered the loan options available through that one lender. As your mortgage broker, we do all the leg work for you. We are across many lenders and all of their loan products and our sole purpose is to find the right loan for your needs.