Talking with your mortgage broker - Jessica Arabia, Finance Prospects

Here in Australia the mortgage broker is well loved and the services of particular professionals are well utilised when it comes to making that important purchase whether it be for a family home or that investment property. However when it comes to financing other big-ticket investments such as the family car, the boat for them weekends away or acquiring funds to grow your business, many Australians continue to take the easy road to their local banking institution or finance company they seen on a TV advert rather than talking to a specialised broker.

With interest rates at an all-time low, money is going cheap. However, the steps between seeing a great interest rate and getting approved for finance can make the idea of shopping around for a better deal all too hard which is why it pays to get talking to broker today. Using a mortgage broker and their services to assist you with obtaining a home loan can in the long term save you considerable time and potentially result in huge savings.

Before you decide on a broker, you need to make sure they’re going to meet your needs so find below some questions you as a potential client can ask your mortgage broker:

·      What are your qualifications as a mortgage broker?

The majority of lenders now require brokers complete at least a Certificate IV in Financial Services, ultimately have a Diploma of Finance and Mortgage Broking Management and either hold an Australian credit licence or be authorised under a licensed home loans aggregator or lender. A broker should also be a member of the Mortgage and Finance Association of Australia (MFAA) or the Finance Brokers Association of Australia (FBAA).

·      Do you have access to a wide range of lenders?

Your chosen mortgage broker should be able to find you a competitive solution for the type of finance you are looking to obtain from a large number of lenders whether it is a standard bank lender or non-bank lender. Don’t be scared to ask how many lenders they have access to as this will ensure you have confidence that they have a wide selection to choose from.

·      What is my borrowing capacity?

As part of the standard process, your mortgage broker will be able to provide you with an overview of how much you can borrow based on the size of your deposit, your level of income, and also taking into consideration your assets and liabilities. This will help you understand what type of property you can actually afford to buy.

·      How do you determine the best lender?

The main purpose of talking to your mortgage broker is to source the best home loan for your specific needs without tarnishing your credit file. Obtaining a home loan with a low interest rate is often seen as the key factor, but a knowledgeable broker should be able to assess your requirements and then present the most suitable option for not only your short term but also taking into consideration your long term goals as a whole.

·      Can you assist with first home owners grants?

First-time home buyers may be entitled to government grants and other incentives that specific lenders offer from time to time. Your mortgage broker in most cases will know what is available to you based on your state or territory and will assist you along the way with any paperwork that needs to be completed.

·      Can you explain the best loan structure for me?

Your mortgage broker once looking over your situation as a whole will be in a position to advise you on which loan structure will be most suitable to you for your situation. If you as the client are unsure about anything don’t hesitate to voice your concerns and your broker will be able to answer any questions you may have.

·      Can you explain the steps in the process?

Upon your first meeting with your mortgage broker, if you are simply in the early stages of working out your borrowing capacity and what you can actually purchase don’t hesitate to ask them about the process for getting a loan application underway. This can include asking what information and documentation you will need to provide them as this can assist you with a smooth process later on. Your broker might even have a checklist on hand they will be able to provide you with and in turn assist you.

If you have any queries or a question regarding specific information around loans in general, don’t hesitate to get in touch with our friendly team on 08 8344 9933 or email Jessica at jessica@financeprospects.com.au to find out more about the options available to you.