What is a Mortgage Broker (and why should I use one)?

November 15, 2016
Vicki Wisely

By definition a mortgage is ‘an agreement under which a person borrows money to buy property, especially a house’. 

And a Broker is – ‘a person who functions as an intermediary between two or more parties in negotiating agreements, bargains, or the like’.

So if we put that all into one statement a Mortgage Broker is ‘someone who can act between you and a lender to negotiate a loan or find you a bargain if you are looking to borrow money (especially for a house)’.

 

How do lenders feel about Mortgage Brokers?

In the past, banking was personal.  You knew the manager and the staff, they knew you and your family and your loyalty helped when you applied for a loan. But the dynamics of lending has changed and its about volume and criteria’s.

Over the last few years, Mortgage Brokers wrote nearly half of the mortgages written and not only do the lenders love it but they’re encouraging it.

When a Mortgage Choice broker submits a loan, all the time consuming legwork and paperwork has been completed for the lender. This saves the lenders time and money.

The lenders Business Managers regularly visit each of the Mortgage Choice Brokers, keeping them up to date with the products they have and ensuring we all have a great relationship.

 

Is that a good thing?

It’s a great thing!  Lenders now have to compete for your business like never before.

When you talk with a Mortgage Choice broker, you are effectively talking with a panel of over 20 lenders who, when you roll them all together, have around 400 packages – that change – all the time.

Your broker will analyse the across the panel of lenders, assess the packages on offer and find the match for your goals and lifestyle.   

When your broker presents your options to you, they explain all the fees and charges to.  This makes lending more transparent than ever before and with that comes healthy competition.

 

Aren’t all loans and lenders all the same?

No, not at all.

Each lender usually has several packages offering different rates, benefits, services and fees. They also have ‘specials’ from time to time that they don’t advertise widespread.

Lending criteria can also differ from lender to lender, particularly when it comes to being ‘self-employed’.

 

But isn’t it just a matter of picking the lowest interest rate?

Interest rates play a big part but what if that low interest rate loan has high annual fees or other lender costs. 

The loan should also suit your current needs.  Fixed, variable or a bit of both? What about an offset account, credit card or both? Would a Guarantor avoid you paying Lenders Mortgage Insurance? Does the loan take your future needs into account? 

 

What makes a Mortgage Choice broker different?

Its that personal, one-on-one service.

A Mortgage Choice broker takes the time to get to know you, one on one, so they understand your needs, your lifestyle and your future financial goals.

And if your dream needs to be delayed (just for now) your Mortgage Choice broker will work with you to design a savings plan. 

Your Mortgage Choice broker will touch base from time to time to remind you to re-assess your mortgage.  As we mentioned, the lenders are constantly changing their packages and your life changes, so it’s important to check that your mortgage is still working hard for you.

 

Is a Mortgage Choice broker just for when I buy houses?

No, not at all.

Need a financial planner?  Just ask your Mortgage Choice broker.  They will even cover the cost of your first appointment.

Looking at buying a car?  They even have a car buying service so that you get a great car to go with that great loan.

Your Mortgage Choice broker can assist you with all of your financial needs including car loans, business, investment, personal, commercial, equipment etc.  Think of them as more of a Finance Broker than a Mortgage Broker.

Isn’t it nice to know that you only ever have to make one phone call and deal with a person who knows you, your finances and your goals?

 

But the Mortgage Choice service must be expensive.

All Mortgage Choice brokers provide their service at no cost to you.

Not all brokerages can say this so unless you are talking with a Mortgage Choice broker so it’s important to discuss this when choosing your broker.

 

But if a Mortgage Choice broker’s service is at no cost to me, how do they get paid?

Once your loan settles, the lender pays a commission to Mortgage Choice. 

There is no fee hidden into your loan or a surprise bill in the mail.  The same loan is available at the same rate, direct through the lender.

Mortgage Choice receives the same commission from all of the lenders on their panel.  This means that your Mortgage Choice broker is only interested in making sure that you get the best loan for your needs – for now and into the future.

 

Renee Polden is your Mortgage Choice broker in Robina. 

The team at Mortgage Choice in Robina will guide you all the way through your purchasing process, even communicating with both your lender and your solicitor to ensure that everything goes smoothly. Even after you have the keys to the front door in your hand.

Over the years she will stay in touch and check that your loan continues to suit your needs, lifestyle and remains the most competitive option for you.

It’s about personal service, where you matter.

Call her on 07 5562 0748, the lenders want you to.

 

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