Given the size of home loans in Sydney, it is probably the biggest expense you will ever have, and it pays to get the best advice possible. A mortgage broker can be seen as a home loan expert. Read More
In most cases, lending is all they do and can give you professional advice to match your needs with a suitable lending solution. A great mortgage broker will save you time, effort and most likely money in selecting a home or commercial loan.
And of course, many brokers offer comprehensive post settlement services to look after your needs of tomorrow.
WHAT DOES A MORTGAGE BROKER DO?
1. Assess your needs
A mortgage broker will take the time to discuss your needs and circumstances with you. This gives them the opportunity to determine which type of home loans in or outside of Sydney is most suitable.
As part of this process, you will need to provide documents to support your identity and financial situation. These will include a 100 point check list for identification, personal bank statements to demonstrate savings (if applicable), tax returns, payslips, outstanding loans, statements, etc. Your broker will advise you of what you need for your situation.
Once your mortgage broker has a clear understanding of your financial position and goals, they will discuss the various loan products available. They should also provide you with product comparisons and inform you of proposed mortgage repayments and any upfront and ongoing fees.
2. Finds a suitable loan for your situation
The mortgage broker will then search their database containing hundreds of mortgage products from many different lenders, including major banks, smaller banks and other lenders.
Sophisticated software assists with this otherwise labour intensive task and usually a comparison table and or graph is available for your consideration.
This database is constantly updated and has details of the latest deals. Sometimes, a mortgage broker can have access to some exclusive mortgage products which are not available elsewhere.
The broker will then recommend a product or products which suit your needs. You should also be provided with a copy of the lenders comparison rate schedule. Comparison rates include both the interest rate and fees and charges relating to a loan and are a tool to help you identify the true cost of a loan. It is sort of an “apples with apples” yardstick to help you make comparing loan packages easier.
3. Manages the process
If you wish to proceed, then the broker will help you to complete the necessary paperwork and liaise with the lender on your behalf. This will include the completion and submission of your home loan application and the on-going communication between all parties until your home loan is approved and settled.
Your mortgage broker is also required to inform you of their complaints process. This is called an Internal Dispute Resolution procedure and all members of the MFAA (Mortgage & Finance Association of Australia), COSL (Credit Ombudsman Service Limited) and BFSO (Banking and Financial Services Ombudsman) have requirements in this regard.
4. Provides advice every step of the way
There are many steps in the loan process and an experienced mortgage broker will help you from your initial steps, such as getting pre-approval (where your loan is “approved” based on certain conditions such as loan value) right through to possible refinancing at a later stage.
A Mortgage broker will save you time and effort in finding the right loan and alleviate the stress and headaches associated with dealing with lenders.
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