Currently 60% of all home loans are originated through mortgage brokers. To some, this might seem surprising. The role of a broker is sometimes misunderstood - particularly by those who haven’t used one before. There are lots of good reasons why so many people use a broker to secure a home loan.
Probably the most important one that is that brokers work for you, not the banks. Brokers are an agent for you to make sure you get the best possible loan and at the best possible cost. Brokers help you decide on the best approach, help you with choosing which option to take, and then manage the application process right through to settlement and beyond.
WHAT DOES A MORTGAGE BROKER DO?
A broker is an intermediary between you and lenders. The broker’s role is to understand your needs and objectives, and then use their expertise of the mortgage market to find the best option for you. A broker will have access to a range of lenders and hundreds of products and will be able to match you with the best loan product for your individual circumstances. They will manage the application process on your behalf and liaise with the bank all the way through to settlement. They will also negotiate on your behalf to get the best possible deal on your loan.
For a lot of people, the process of applying for a loan can be overwhelming. Others may be time poor and find it easier to allow a trusted advisor to manage the process. Most like the comfort of knowing that a professional is in their corner when they are making such a big commitment.
HOW DO BROKERS GET PAID?
Most finance brokers do not charge you a fee for a standard mortgage loan. Brokers receive a commission from the lender you choose for referring your business to them. Banks and lenders across Australia pay very similar commission fees. There is also usually an ongoing small fee that lender pays to the broker – this is for the broker to continue to assist and support you for the life of your loan.
There is no premium or penalty for using a mortgage broker. There are no additional fees, charges, or interest for taking a loan that was introduced to the lender via a broker.
PROFESSIONAL CREDIT ASSISTANCE
The broking industry is regulated by ASIC and any consumer credit assistance under the National Consumer Credit Protection Act (NCCP). Brokers are bound to act in the best interests of their customers under Best Interest Duties legislation. They are required to either hold a credit licence or be a representative of a licensee. Brokers must complete minimum education requirements, must be insured, and must be a member of one of the industry bodies to operate.
BLACKWATTLE FINANCE – WHY CHOOSE US?
We pride ourselves on going above and beyond. We will research all avenues to ensure you receive the best possible credit advice. We make things as simple as we can and as easy for you as possible. We’ll provide you with updates and advice and ensure you are aware of each step of the loan process so you are informed.
When you get your approval, or when you pick up the keys on your new place, we are just as excited as you. We love to build lasting relationships and enjoy the process with our customers. We hope you choose us to help with your next purchase!