Mortgages are a huge part of most lives; after all, it allows us to buy homes. However, thanks to the technical skills required, it’s almost impossible to create one without a mortgage broker.
They offer professional help and custom advice that fits into your situation. And as such, allow you to make the best financial decision. However, a mortgage broker only comes in handy when you choose rightly.
To ensure you do, here are five things to consider when choosing your mortgage brokers.
1. Adequate Qualification
Mortgage brokers are professionals. As such, you don’t just need anybody to fill in as your mortgage broker. Instead, it would be best if you had a licensed and trained expert who can communicate on your behalf.
Hence, before choosing that mortgage broker, ensure they have at least the following.
- Diploma or Certificate IV in Finance and Mortgage Broking.
- They have an Australian Credit License (ACL) as obtained from the Australian Securities and Investment Commission (ASIC).
- They are part of professional organisations like the FBAA or MFAA.
To enjoy the best experience making that financial decision, you need a mortgage broker that has experience. For instance, in cases of complex refinancing and poor credit, you need a broker with enough knowledge and expertise to react accordingly. As such, ensure you choose a mortgage broker with an excellent track record.
Also, you don’t necessarily have to go for one with 20 years of experience. Just ensure your mortgage broker has at least five years’ experience and fits into all the other requirements.
However, a broker may have less than five years’ experience and appear to know their stuff. In such an instance, if you feel right about it, then you can go for it.
Perhaps the best thing about getting a mortgage broker in Australia is that you don’t have to pay them directly. Usually, they are paid by the lenders once you complete the mortgage agreement.
However, you could say that you’re paying a part indirectly. As such, it is always a great idea if your mortgage broker is open and discloses their remuneration package. This way, you can be sure there’s bias due to referral fees.
4. Broad Lender Panel
The lender panel is the number of lenders that a broker can work with. And a diverse board means there are many options that you can choose from.
As such, ensure your broker has a broad panel of lenders. Also, ensure you get a breakdown of the commission structure and usage statistics. This way, you can get the best lender possible.
5. Ownership Structure
Another important consideration is who owns the mortgage broker. You need to ensure that your choice is not a subsidiary of a big bank.
This is because such brokers are more likely to recommend their parent banks. And it might not be the best fit for you. So, avoid brokers that have commercial ties to a big bank. They are more likely to be biased.
Although this list is an excellent starting point, it’s by no means exhaustive. As such, you might want to look out for other factors like positive reviews and a research-oriented broker, among others. This way, you can be sure you have the best help to make the best choice.
In case you need a mortgage broker, you can contact Marketmasters and be sure to get premium service.