Jessica Darnbrough from Mortgage Choice gives you tips for purchasing your home
If you are thinking of buying property or refinancing in the not too-distant future, you may be considering whether or not you should use the services of a mortgage broker.
If you haven't used a mortgage broker before, you may be wondering what the advantages or benefits of doing so are.
First and foremost, a mortgage broker can save you time, confusion, hassle and possibly money by helping you find a suitable finance solution for your individual financial situation, needs, wants, lifestyle and objectives.
With access to an extensive panel of lending institutions such as banks, non-banks, credit unions and building societies, mortgage brokers offer what an individual lender cannot – choice.
But how do you choose the right mortgage broker and what questions should you be asking a mortgage broker to ensure you pick the right one?
Firstly, it is important to ask your mortgage broker whether or not they are part of an industry body. All mortgage brokers are required to be a member of either the MFAA or the FBAA, so if your broker isn't a member, then it might be worth considering dealing with someone else.
Secondly, ask your broker how many lenders they have on their panel. A good mortgage broker will have access to at least 20 lenders and therefore hundreds of loan products, which means they should be able to help you find the right product for your needs.
Thirdly, it is definitely worth asking your mortgage broker how they get paid.
The good news is, as a customer, you do not have to pay your broker for the great service they provide, the bank does.
Basically, your broker will present all the different options to you and once you have chosen which lender to go through, the application is submitted and approved and you are settled in your new home, that lender will then pay your broker a commission for assisting in setting up the loan.
What is important to note is that most lenders pay different commission, so you may be forgiven for assuming that if one lender was to pay more commission than another, then your broker may be swayed to present that lender as a more suitable option.
Thankfully however, at Mortgage Choice, our brokers are paid the same regardless of which lender you choose, as long as it's a residential loan from our panel of lenders. This ensures Mortgage Choice brokers focus on the right outcome for you.
If you would like more information on how a mortgage broker gets paid, or if you would like to speak to your local Mortgage Choice broker, call us today on 13 77 62.