Mortgage brokers provide an invaluable service to Australian homebuyers seeking guidance on financial products. A mortgage broker with adequate experience and the right connections could help you find a better mortgage rate and terms on your loan. Besides suggesting the best loan options for your financial situation, a good mortgage broker will also guide you throughout your loan term to ensure your home loan remains competitive and suitable for you.
About 7 out of 10 mortgages in the last quarter of 2022 were facilitated by mortgage brokers, according to data released by CoreLogic and commissioned by the MFAA. But how do you find the right mortgage broker to assist you on your home loan journey?
How to save more by finding the right mortgage broker
Even though finding the right home loan can be tricky, guidance from a professional such as a mortgage broker can make the process seamless and much less complicated.
Here are some tips on how you can save more with the right mortgage broker:
1. Understand what a mortgage broker is and what they do
Before you start working with a mortgage broker, it is important to understand what they do. A mortgage broker is a licensed professional who works as a conduit between you and the lenders. They help you find the best mortgage deal for you by comparing loan options, negotiating with lenders, and guiding you through the application process.
You should also know that mortgage brokers are required to work in your best interests by law. Even though a mortgage broker may not charge you anything for their service, they must provide unbiased financial advice that’s best suited for your situation.
2. Choose a reputable broker
When selecting a mortgage broker, remember to research and find one with good ratings and reviews. You can also ask for recommendations from friends or family members who have worked with a mortgage broker before.
Apart from a broker’s reputation, you should check whether they are licensed and registered. A mortgage broker must possess a valid Australian Credit License (ACL) to advise clients on financial products. Additionally, a broker with an ACL is legally obliged to act in your best interest by offering you credit products aligned with your financial situation.
You could check ASIC Connect’s Professional Registers or call their hotline to confirm whether a broker is licensed. It’s also worth checking whether a broker is a part of any industry associations, such as the MFAA and FBAA.
3. Outline your financial goals
A mortgage broker can help you achieve your financial goals by finding suitable home loan deals for you. However, you must be clear about your financial goals to get the most out of working with a mortgage broker.
Do you want to fix your home loan to safeguard yourself against future rate hikes? Are you looking for a home loan without any bells and whistles to ensure you pay the lowest possible rate? Or do you want some additional features to make your repayments flexible?
Knowing your financial goals will help your mortgage broker find the best loan options that suit your needs. You should also be careful about providing your mortgage broker with correct financial information, including your income, assets, expenses, and debts. The more accurate your information, the easier it is for your broker to find loan options that fit your financial situation.
4. Do your homework
Ask your broker about the lenders they work with. Most brokers work with a panel of lenders that may include as many as 30 or more different lenders. However, the best product for you might be one that is not offered by any of the lenders on your broker’s panel. That’s why it’s vital to research independently and compare offers online to ensure you get the best possible deal for your situation.
5. Ask questions and communicate often
Don’t be afraid to ask your mortgage broker questions. A good broker will make time to answer your queries and explain your options to you in a way that’s easy to understand. If you’re not sure about something, ask for clarification.
Remember that your connection with a mortgage broker is going to be a long one. A broker, not only works with you to facilitate your loan application, but they’ll typically stay in touch with you for the duration of your loan. So make sure you’re comfortable with their level of communication and support before signing up for their service.
Hashching simplifies your home loan journey by giving you access to the best mortgage brokers in your area. All the brokers on our website are licensed with verified ratings and reviews. Simply enter your suburb or postcode to connect with the top mortgage brokers in your area for an obligation-free service.
By Vidhu Bajaj,
Hashching Content Writer