The role of a mortgage broker is to act as an intermediary between customers and lenders when seeking finance. A good mortgage broker will also educate their customers on the finance approval process, available products, and current market conditions. Your broker will oversee your finance application from your initial enquiry through to the settlement of your loan.

Before meeting a broker

Before meeting with a broker, it is important to consider your main priorities (i.e., what are the additional funds for? / What debts to consolidate first). As well as any preferences for a particular bank or product, having a clear understanding of your needs will allow the broker to provide you with a solution that suits your situation. It is also prudent to ensure your broker is licensed. You can check this by clicking here.

What should you expect?

As mentioned earlier, your mortgage broker will oversee your finance application, but what does that entail?

From your initial enquiry, your broker will start a fact-finding process to make an accurate assessment of your financial situation and understand your needs and objectives. Online, over the phone, or face-to-face appointments are the usual methods to completing the fact find process. During the fact-finding stage, you must provide documentation to verify your income, expenses, current loans, identity, and credit history.

Once they have collected the required information, they will analyse the different lenders and
products, using your situation and goals to determine the most suitable options. Your broker will present these options (usually 3 or 4) and explain why the recommended lender and product are the most suitable. Once agreed upon, your broker will start preparing documents for submission to that lender. This stage involves collecting updated and additional information per the lender's policy and completing lender-specific documentation.

After completing the submission, your broker will liaise with the bank (and solicitors/ real estate agents for purchases) on your behalf to obtain any additional information required. They are also available to answer any questions leading up to settlement. Your broker will stay in touch post-settlement to attend to any future lending requirements you have.

How are brokers paid?

Mortgage brokers receive an upfront and ongoing commission from the recommended lender. It is important to note that this commission is not charged on top of your interest rate and is paid as a finder's fee.

Sometimes, a mortgage broker may charge a fee for their service in addition to the commission received, usually for complex lending scenarios which require significant upfront and ongoing work. The upfront fee needs to be accepted by you before starting your application.

Wrap Up:

A good mortgage broker will take the time to understand your circumstances and needs and educate you on the lenders and products that suit your situation. They will manage your application until your loan has settled. Mortgage brokers will stay in touch after settlement to help with future lending needs. They can save you significant time and paperwork by acting on your behalf and ensuring you fund a suitable product at a good rate.

If you have any questions about the mortgage broking process or want to discuss your current home loan, car loan, or an investment loan, please call 0455 315 514 or complete the form below. We will be happy to assist.