Best questions to ask your Mortgage Broker

Whether you’re seeing a broker for the first time or you’ve seen one in the past, it’s always a good idea to be prepared before your meeting.

This means doing your research and knowing what questions to ask your broker. After all, the more you know, the better off you will be.

To help you on your way, we have created a list of questions that you should always ask your broker, including:

1. How do you get paid?

When you take out a loan, you don’t have to pay your mortgage broker, as your chosen lender will. However, it’s worth asking your broker how they get paid, as it may vary from broker to broker. The fact is, different lenders offer different rates of commissions. As such, some brokers may be inclined to put you with one lender rather than another because that particular lender will pay them more. At Mortgage Choice, our brokers are paid the same rate of commission regardless of the lender you choose. So, you can rest easy in the knowledge that your broker is always working in your best interests.

2. How many lenders are on your panel?

Mortgage brokers deal with a range of lenders including credit unions, small banks and major banks, but it’s worth asking how many they have on their panel. It’ll give you an indication of how much choice you may have and how likely you may be to find the right product for your needs. While you don’t need your broker to partner with every single lender, you would want them to partner with more than 15 different lenders.

3. What documents do I need to have for an application?

Before your meeting, you should ask your broker what documentation they will need from you in order to apply for a loan. This could include a valid passport, driver’s licence, pay slips, and bank statements. By having this all ready, you can streamline the application process and make the journey quicker, easier and more enjoyable.

4. What home loan features are right for me?

With so many products on offer, it can be tricky to understand what you may need from your home loan. For example, an offset account or redraw facility may not be the right fit for you. A broker can assist you in running through your options and assess what will work best for your needs and situation.

5. Why is this loan right for me?

Your broker will offer a range of home loan options for you. You should ask your broker to explain what each one features and why they think it may be suited to you. Make sure you’re across your choice of home loan before you sign on the dotted line.

There you have it. If your broker provides you with a suitable answer to each of the above listed questions then you can rest assured in the knowledge that you are in good hands.

If this has got you thinking it's time you sit down with a Mortgage Choice Broker, give us a call on 07 5436 6177 or email ian.robinson@mortgagechoice.com.au

Posted in: Home loans

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