As interest rates rise, choosing the right home loan is becoming increasingly important- but it can also be a tedious process.

 

The right mortgage broker can help you get the loan that’s right for you, whether you’re buying a new home or refinancing your current property.

 

Getting the best home loan rates, getting the most out of your loan, and saving time, are just some of the benefits you can get from a broker! In fact, 70% of mortgages are now going through brokers instead of through banks – that’s whopping number!

 

What does a Mortgage Broker do?

 

The role of a mortgage broker is to assist clients in finding the right home loan for their needs. It’s their responsibility to gather information about their clients’ requirements and recommend lenders and products that match them.

 

A mortgage broker may also assist a home buyer with the application process after they have helped them select a home loan.

 

Borrowers in more complicated financial situations, such as those who are self-employed or contractors who have a more complex loan application, may especially benefit from their assistance.

 

In short, a good broker works with you to:

 

• Understand your needs and requirements.
• Work out what you can afford to borrow.
• Find options to suit your situation.
• Explain how each loan works and their costs.
• Apply for a loan and manage the process for you.

 

How do they get compensated?

 

Most lenders pay brokers a commission or fee for selling their products, so you don’t have to pay anything to the broker. Brokers sometimes get paid a flat fee regardless of what loans they recommend. Other brokers get a higher fee if they offer certain loans.

 

A broker can also charge you directly – in addition to, or instead of, a lender’s commission.

 

Ask your mortgage broker how they are compensated and look online to see what other brokers charge if you’re not sure whether or not you’re getting a good deal.

 

Before meeting with a mortgage broker, what should you do? 

 

1. Check whether the broker is licensed to give you advice or not. You can search their names on the following lists on ASIC Connect’s Professional Registers: Credit Representative & Credit Licensee.

 

2. Consider your must-haves. What matters most to you in a home loan? The interest rates? Or do you want specific features, such as being able to make extra repayments or it might be an offset facility?

 

Which questions should you ask?

 

Considering that a mortgage is a long-term debt, even a small difference can add up over time. It is possible to save thousands of dollars if you can get a better interest rate from another lender.

 

Invest time in finding the right mortgage broker and don’t be afraid to ask questions. Lots of them! Such as:

 

• Do you offer loans from a variety of lenders? Can you tell me how many lenders you work with and what kind of lenders they are? Are there any lenders you can’t access?
• How are you paid for your advice?
• What made you recommend this loan to me? Is this loan in my best interest?
• When I take out this loan, what fees will I have to pay?
• What are the features or options of this loan?
• How do the fees and features of this loan affect its cost?
• What other options are available?

 

Get in touch with your local bytherules conveyancer, they can recommend a Mortgage Broker in your area and tie in with them to ensure your conveyancing settlement is as seamless as ever!