If you live in Canberra, and you’re looking to find the right mortgage broker for a new home, look no further because, during the entirety of this article, you are going to learn helpful tips on how you can get the right mortgage broker for your home.
The best mortgage dealers can help secure the right loan to help finance your home purchases and help with the necessary legal work to get the best deal suited to your needs. This is why you must follow the right steps in choosing one for yourself.
Below are a few tips on how you can find the right mortgage dealer
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Do your Necessary Homework
Before you look for an agent, you must be prepared. Do your research on the potential loans available to you, and find the one that is best suited for you. Doing so, will get you a better idea of what is being suggested by the agent and what you want from him.
Make sure to contact different agents so as you can compare their services to get the best offer. There are questions you can ask an agent to find out what they can offer and provide to you.
You have to understand that the brokers out there aren’t obliged to offer their clients the best services. They are only required by law to assist you with a loan. Not too many professionals have your interest at heart, so you should know how to identify the right agents to work with for your home loan.
2. Check their Qualifications and Experiences
Firstly, you have to ensure that your broker is qualified to provide you with a loan. Your broker should be able to provide you with a license from the state or should be licensed to act as an authorized credit representative.
Find out from your agent the qualifications and experience that they have because it might be costly if you end up with the wrong one. You can check here https://www.nytimes.com/guides/business/how-to-hire-the-right-person for suggestions on how to avoid poorly equipped professionals. Before you hire a broker, make sure the person is qualified to provide you loan advice.
He or she should:
- Have a certificate IV and a diploma in financial services?
- Be part of the mortgage and finance association of Australia (MFAA)
- Be accredited under the National Consumer Protection Act
Try using the Australian Securities and Investment Commission Connect (ASIC Connect) to find qualified and licensed brokers in Canberra.
3. Find out About the Broker’s Lender Panel
The best mortgage dealers have many reputable institutions that allow them to provide better mortgage deals to their clients. Make sure to find out about the lending panel your broker works with because it says a lot about the agent.
Your potential hire should be able to explain to you the number of lenders that he/she has got on their panel, and how many of those lenders they use.
As a mortgagor, you have to be assured that the offers you are getting match your need. Ask your adviser why they are giving you a lender from their panel and see what the lender can assist you with.
A bigger lending panel might not necessarily provide you with the best services. A dealer with a lending panel that gives you better services is what is required. You can check this website for the best service providers in Canberra ACT.
You must ask your agent to explain all the paperwork linked to your loan application and contract. It is advised that you demand from your agent a loan factsheet that shows in writing what is being offered to you. This ensures that you understand fully well what you’re getting out of the deal.
4. Know the Broker’s Payment Method
Most agents around Canberra typically give their services for free to clients and get a commission from the credit providers. According to the laws governing brokers in Canberra, there is a standard payment of commission to all brokers.
For every successful home loan that an agent provides, they get a commission from the banks. It is usually split into an upfront payment and a trail commission.
The upfront commission is a fraction of the total loan value. So, the bigger the loan, the larger the percentage for the broker. You have to be wary of agents that request for a larger loan than what you already have in mind.
The trail commission is a fraction of the mortgage that the agent continues to receive over the loan’s existence. The downside of hiring an agent with a trail commission is that they no longer are obliged to offer any services to you during the loan’s lifespan, which means they might end up doing nothing and still get paid regardless.
Most lenders have similar commission rates, with the upfront commission usually ranging from 0.46% to 0.65% of the agreed loan. The trail commissions typically range from 0.1% to 0.35% of the ongoing loan.
It would help if you asked your home loan advisor the special commission that they get. Brokers are obliged by law to disclose the commission provided to them by lenders, to provide you with the necessary information during your mortgage.
5. Find Out About their Ownership Structure
Make sure to find out from your agents who owns them. Large banks mostly own brokerage firms, but it is possible to find others with a different management team. Statistics have shown that in every ten brokers, six are owned by banks.
If you hire a bank-owned advisor, it can alter the quality of advice and offers that you get. They mostly work in the best interest of the banks and not their customers.
Look out for agents who claim to have a special connection with a bank. It might be a ploy to sell you a loan from their bank. The best brokers do not get swayed by their ownership structure, but offer their clients a wide variety of loans from across reputable sources.
Take Away
The best advisers are the ones who work for the best interest of their clients regardless of their ownership structures and can provide you a range of services tailored to your needs.
Ensure your stockbroker is a member of the Mortgage and Finance Association of Australia (MFAA) or the Finance Brokers Association of Australia (FBAA).
