What Does a Mortgage Broker Do?
(Tip: A certified Mortgage Broker is also known as a Credit Adviser or Finance Broker.)
Some time ago, the MFAA decided to rename the title ‘mortgage broker’ to ‘credit adviser’. As I write, we are now called ‘finance brokers’. If ever there were cause for an identity crisis, this is quite a good example!
Ben Spyker SMBIA
Common Scenario – You need a Home Loan
You need a loan, and you need a lender; how do you decide which loan and which lender?
- You could run around to all the lenders and find out the details for each of the loans they have available or
- You could make things a lot easier by contacting a mortgage broker and draw from their expertise.
There is a real benefit to utilising a Mortgage Broker
Mortgage Brokers have an extensive mix of loan options available. With all these choices available, you might ask yourself, how is this Broker going to narrow down the options to find the correct loan for me?
Mortgage Brokers have contacts that we don’t have, but there’s no point using a Mortgage Broker who’s only recommending products from a couple of lenders. You could quickly and easily compare far more products than that by just doing your own research! Ideally, your Mortgage Broker will work in conjunction with a number of both Bank and non-Bank lenders (such as Building Societies), ensuring that you have options. Also, ask your Mortgage Broker if they lean towards any particular lender, and if the answer is yes, ask them why.
How Many Lenders Do You Deal With?
At any given time, our MFAA Approved Finance Brokers have access to over 30 different lenders. These lenders include the four big banks, second-tier lenders such as Citibank, Bankwest and Macquarie Bank, and a multitude of niche lenders like Pepper or Liberty, who have loan options for people who may not quite meet the lending criteria set by the bigger banks.
A Mortgage Broker will look at several different factors before making any loan recommendations to you.
They will first discuss your goals. The broker also needs to know if you want to quickly pay off the loan or if you are looking for a loan with the lowest possible interest rate. Are you looking for a fixed loan, or perhaps a loan with a low fee structure? They know that each and every person is different.
Many of the MFAA approved credit advisers will give their clients a choice between three loan options, making sure that each of the options offered meets the clients requirements across a range of criteria. But when a borrower does not have specific requirements, most often a credit adviser will consider interest rates, what fees might impact the life of the loan and the portability of the loan.
While the most critical factor may be interest rates, there are other factors to consider as well. The credit adviser will not only look at the interest rates and fees, but also at how well you and a Lender match up.
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81 The Parade, Norwood SA 5067