Using a broker – are you undecided?

Using a broker – are you undecided?

Mortgage brokers will no doubt work with your interests at heart.

2 out of 3 Australians trust using a mortgage broker for researching the best home loan that suits them now and in the future.

Mortgage Brokers provide consumers with:

  • Choice
  • Convenience
  • Professionalism

As a consumer wades through the complex home loan process, a mortgage broker is like an expert mentor. The mortgage broker offers the consumer extensive choices while balancing their financial interests and goals.

Some brokers may offer to visit you at your home after hours, or on the weekend. This service may be convenient and suit your needs.

If you are just looking for a home loan, most mainstream brokers will not charge you any fees for their services. Even if you have had a troubled credit history or your financial situation is too unusual for mainstream lenders, you can probably find brokers who will assist you free of charge.

Ask your broker questions

The large amount and varied home loan options available these days, it is important to ask your mortgage broker some specific questions regarding which lender they will be using, the type of home loan they’ve selected and how much you will be paying, so you dont get any nasty suprises when often it’s all too late..

What industry experience and qualifications does your mortgage broker have?

We tend to hesitate a little when asking such questions but it is in your best interests. Remember this is one of the largest financial decisions and commitment you will ever make. Don’t be afraid to ask how long your broker has been working in the industry or what their relevant qualifications are.

How do mortgage brokers get paid?

Mortgage brokers are required by law throughout Australia to disclose their commissions received.                        

The majority offer their services free of charge as they receive a commission from the lending institution.

Keep these questions too in mind

What percentage of the property value can I borrow (LVR)?
Do I have to pay lenders mortgage insurance (LMI)?
What are the types of home loans that are available?
Which home loans will suit my immediate and future needs?
Which lenders offer the best variable/fixed interest rate and what other home loan features are available as options?

It is a great idea to do some of your own research. We have a large amount of information on home loans to help you make an unbiased and informed decision.

What about the actual home loan itself?    

What is the current interest rate on the home loan? 
Is it better to have a fixed or variable interest rate portion? 
If I want to, can I have a fixed and variable components? 
What are my weekly/fortnightly/monthly repayments?

NOTE: It is very important to find out from your mortgage broker how each lender calculates weekly or fortnightly repayments. Accelerated payments are calculated by dividing your monthly repayment by 2 for fortnightly and by 4 for weekly repayments.

This method can save you substancial amount of interest and can reduce your home loan term, but your repayments are higher than ACTUAL fortnightly or weekly repayments. 

Are there various establishment, valuation or legal fees payable by me?

What about any ongoing monthly/annual fees?

If I want Pre-approval, are there any upfront fees?                                                         

Does this lender have a good customer service model?                                                     

Does the lender provide Internet/ Phone banking?

Do I incur any fees for discharging my home loan?                                                          

Can I make additional lumpsum payments or increase my current repayments?

Are there any additional fees for these services, and if so, what are they?

Are there any future costs involved if I discharge the loan, decide to change the loan products, want to increase my repayments or make a lump sum repayment or access any additional payments I have made?

Check out the brokers listed on our site (in fact contact a few of them) for help in choosing a great home loan deal

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