A mortgage broker acts as an intermediary who brokers mortgage loans on behalf of individuals or businesses.
Traditionally, banks and other lending institutions have sold their own products. However, as markets for mortgages have become more competitive, the role of the mortgage broker has become more popular. Today in most developed mortgage markets (especially in Canada, the U.S., the UK, Australia, New Zealand and Spain), mortgage brokers are the largest sellers of mortgage products for lenders.
Mortgage brokers exist to find a bank or a direct lender that an individual seeks with a specific loan that the individual is seeking.
More than 52% of mortgages written in Australia go through a mortgage broker. This is predicted to increase to over 70% in the near future.
The mortgage broker you choose should be an experienced home loan expert. Your mortgage is probably the biggest expense you will ever have and therefore it is wise to get professional credit assistance and advice.
A good professional mortgage broker will save you time and money whilst doing the legwork on researching products on the market from the hundreds available. They will educate you on your loan product and support you through the application and settlement process.
The industry of mortgage broking is changing. In early 2010, the National Consumer Credit Protection Act, was established to protect borrowers and ensure ethical and professional standards in the finance industry A key protection for consumers under the NCCP, are the responsible lending obligations on mortgage brokers. The objective of these obligations is to ensure that the credit contract or lease is ‘not unsuitable’ for you, the consumer.
The responsible lending obligations require us to:
We will take the time to discuss your needs and circumstances with you. This gives us the opportunity to determine which type of home loan is most suitable.
For a smooth seamless process, you will need to provide documents to support your identity and financial situation. These documents will include a 100 point check list for identification, personal bank statements to demonstrate savings (if applicable), tax returns, payslips, outstanding loans, statements, etc. We will advise you of what you need for your particular situation.
Once we have an understanding of your objectives and financial position, we will discuss the various home loan products available and also provide you with product comparisons as well as inform you of proposed mortgage repayments and any upfront and ongoing fees.
After assessing your objectives and financial needs, we will search our sophisticated database containing hundreds of home loan products from many different lenders, including major banks, smaller banks, and other lenders.
This database is constantly updated and has details of the latest deals from the lenders. We also have access to some exclusive home loan products which are not available elsewhere.
We use our sophisticated software to assist us with this labour intensive task and provide a comparison table and/or graph for your consideration.
We will then recommend a product or products which will suit your needs. A sort of an “apples with apples” yardstick to help you compare home loan packages easier.
We will help you to complete the necessary application 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.
There are many steps in the home loan process and with our professionalism 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 settlement. We also provide a home loan health check further down the track. After the ‘health check’ we may be able to help you reduce your repayments, unlock the equity in your home, or consolidate debt. We can also assist with your refinancing needs should your objectives or financial circumstances change.
Specialist mortgage broker Sue will guide you to find a solution to purchase a property Excited? You should be Come and find out how Sue helped others who never thought they would own a property