Finding a Mortgage Broker
What is a Mortgage Broker?In Australia, a Mortgage Broker is becoming the first port of call when seeking a loan. Mortgage Brokers started to become an alternative to Bank finance about 15 years ago. They now write about 30% of Australia's Mortgages and nationally there are about 2000 mortgage broking businesses.
Mortgage Brokers look at borrowers requirements and then match them to a lender that has the best deal on a loan product that matches as closely as possible those requirements. Normally this service is free to the borrower as the lender pays a commission to the mortgage broker.
Australian Banks, Credit Unions, non-bank lenders and Building Societies all use mortgage brokers to market their loans as it is cheaper than maintaining their own staff and facilities.
Why use a Mortgage Broker?The reason that Mortgage Brokers have become so popular in Australia over the last 15 years is because they simplify the task of finding the best loan. Often they have a computer program that can search through hundreds of competing loan products from dozens of lenders in just a few seconds. This saves borrowers a significant amount of time and effort.
Mortgage Brokers have an intimate understanding of how the loan process works and the criteria used by the different lending institutions. This makes for a much smoother and faster loan application process, while guaranteeing you a better deal.
Finding a Mortgage Broker in AustraliaIt pays to do a bit of research to find the best broker. Only use a mortgage broker who is a member of the Mortgage Industry Association of Australia (MIAA) or the Finance Brokers Association of Australia (FBAA) as they have certain professional standards they must adhere to.
FSO is a unique organization that acts as a middleman with access to multiple brokers, maximizing the number and type of loans to select from.
Asking friends, family, workmates etc for recommendations based on their personal experience can also be helpful.
Tips and strategiesAs with all financial services and major purchases, you should obtain quotes from 3 different sources before committing yourself. In this way you can feel confident you have obtained the best possible deal.
Be sure to ask the mortgage broker why they are recommending a particular loan and get them to explain how they arrived at the decision. Some lenders pay higher commissions to the broker than others and an unscrupulous mortgage broker may try and steer you to the loan with the highest commission.
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Thank you for visiting our Mortgage Broker web-page. We hope the overview has proved useful.
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