How To Find a Good Mortgage Broker

When you purchase a home or refinance an already existing mortgage, it can be a very stressful situation.

You’re facing the challenges of an overly saturated market with lenders, loan types and terms, making it difficult to select the right option for you. This can often lead to confusion and potentially costly mistakes.

Using an experienced Penrith mortgage broker can help you through the loan application process. But how exactly do you find a good broker and what should you look for?

What Does a Mortgage Broker do?

Mortgage brokers act as the intermediary between you and possible lenders, making arrangements for a home loan. They act on your behalf, keeping your best wishes at the top of their mind when making loan arrangements for you.

The best brokers do the following :

• Evaluate and assess your financial circumstances
• Compare loans from various lenders
• Work within your budget
• Help you select the best loan suited for your needs
• Oversee the application process for your loan through to the final settlement

How do I Know if a Mortgage Broker is good?

Finding a trustworthy mortgage broker is very important, especially for someone who meets your needs and will work with you directly. The more complex your situation the more experienced a broker you’ll want.

You’ll want to look out for a broker who is reliable to work with and experienced.

The following will help you find the broker most suited to you :

– Word of Mouth :

Seek out recommendations from friends or family, or even your real estate agency. With a personal referral this often leads to the best results and you know they are trusted due to working with someone close to you.

– Check out their credentials :

Make sure your mortgage broker is licensed and accredited with qualifications. You can check this on an official registry website to help you find a mortgage broker.

– Read client reviews online :

Do some research, amongst your top people, but keep some perspective for the things you’re looking out for.

To gain more of an insight, we suggest checking out client ratings, such as personal experiences and details in the testimonials, clients will leave a review on a specific mortgage broker where you gain more of a personal understanding.

Click here to see our Google Business reviews for Freedom Finance Group

– Examine their lenders :

A broker should have access to a varying amount of lenders and loan products to help you choose from a variety of options.

It’s possible that the big 4 banks or top tier lenders might be unwilling to provide you with a loan or may give you extremely limited borrowing capacity. However, often second or third tier lenders are more than willing to offer you a loan at competitive rates.

At Freedom Finance Group we have access to over 40+ lenders giving you access to a wide variety of loan options.

What to do Before you Meet a Mortgage Broker?

Before your initial consultation with a broker, take some steps in preparation for your meeting. Here are some helpful steps below :

– Collect the right documentation :

Gather together any bank statements, information about your assets and any pay slips.

– Prepare some questions to ask :

Write down any questions or queries you have about the services they offer and the process of starting the loan process.

You might enquire about the following questions to ask a mortgage broker :

• Can you explain the types of loans available?
• How long does the application process take?
• What lender’s mortgage insurance (LMI) is, and what options are available for your specific circumstances?

– Figure out your budget :

Have a clear range or set amount you can afford to borrow and repay, you can always discuss the finer details with our mortgage brokers at Freedom Finance Group.

– What are your final objectives :

Are you looking to refinance a property, a first time homebuyer or an investor.

What should I expect to receive from my Mortgage Broker?

A mortgage broker should provide the following services and provisions when you are working closely with them. They should always be up front on the following :

• Give you a written quotation for the services they provide. Most mortgage brokers offer a free service.
• A side by side comparison of the different loan options
• Clear guidance and explanations for loan features along with the terms
• Provide support throughout your application process
• Give you assistance after the loan has been settled

A good mortgage broker will become a long term partner to you as you grow your property portfolio.

You can touch base with your broker every few years or as interest rates change as there may be new loan offerings that could save you money, or take years off your home loan.

How do Mortgage Brokers Get Paid?

In most circumstances a mortgage broker offers a free service to you. Mortgage brokers don’t charge their clients directly for services.

Instead, they are paid by the lenders, when a loan is successfully settled.

The two main forms of compensation are :

– Upfront commission :

This is a one off payment made by the lender to the mortgage broker when the loan is settled. This ranges roughly between 0.50%-0.70% of the loan, with the addition of GST included.

– Trail commission :

Which is an ongoing monthly payment given to the broker from the lender for the entire life span of the loan. Typically ranging from 0.15%-0.20% annually for the loan balance of the remaining loan.

Each lender offers different commissions and not all lenders offer trailing commissions.

Note : In most circumstances brokers don’t charge fees to the borrower. However there may be charges for very complex loan applications or as an engagement charge. Your broker should disclose this to you openly when you first engage them.

Here’s a cost range breakdown :

Cost Element	Typical Range
Upfront Commission	0.50% – 0.70% of loan amount
Trail Commission	0.15% – 0.20% p.a. of loan balance
Upfront Fee (if charged)	$0 – $1,000
Complex Loan Fee (if applicable)	$0 – $2,000

Important Notice : Any commissions are paid by the lender only and never by the borrower. The Best Interests Duty law requires brokers to act in the absolute best interest of their client, despite any commission received.

Is it Easy to Get a Mortgage Through a Broker?

Obtaining a broker can be a fairly streamlined process, however this largely depends on your financial situation and the lender’s criteria for making a loan.

Our brokers at Freedom Finance Group can help present your application in the best light to a lender, especially with our strong relationships in putting forth your documentation forward.

We have often had clients come to us after being rejected for a loan by their bank or one of the big lenders and we have successfully been able to secure them loans.

Through a broker it’s even possible to get a home loan with little or no deposit if you are able to access home equity, have someone guarantor your loan or are able to access one of the many government schemes available to new home buyers.

Each individual circumstances is different and cannot always been guaranteed, however we always prepare the best solution forward and can offer varied options so you have success in the loan application process

Will my Mortgage Broker Offer any Additional Services?

Yes, mortgage brokers often provide additional services however this varies from broker to broker. Some additional services brokers may offer include:

• Offer regular loan reviews
• Home equity loans or refinancing
• Provide financial planning
• Provide Insurance advice
• Property investment strategies

Our brokers are experienced professionals and offer additional services alongside gaining you a property loan. Check out our other offerings to get a full overview of what we can provide to you, making it a simple and easy process.

How We Can Help at Freedom Finance Group

If you’re a first time buyer or ready to refinance your property, we specialise in finding the most suitable loans for a variety of needs.

We have access to a wide range of lenders and are committed to getting you the best arrangement for your specific circumstances.

Take the first steps towards achieving your property goals, our mortgage brokers are excited to partner with you and help you achieve success.