Mortgage brokers are professionals in the home loan industry. We work with you to determine your borrowing needs and how much you can borrow. Brokers, like us, help to ensure that you don’t take out a loan that is too big for you.
Professional mortgage brokers focus on loans. If you have a toothache, you would of course go to the dentist, and not a florist. If your car is broken, you take it to a mechanic and not a librarian. Whatever your issue, you go to someone trained to help you with your specific need. The same principle applies when you need a loan.
Brokers have access to a wide variety of loans. This means your broker can find a loan that is appropriate for you.
Absolutely not! There is legislation in our industry, called the National Consumer Credit Protection Act (or NCCP), that is designed to protect consumers and ensure ethical and professional standards in the finance industry. We tell you upfront what commission we will be getting from the bank. Our job, our only job, is to find the most suitable loan for your needs and serviceability.
We are only allowed to recommend a product based on what you say is most important to you – for example, you may want to pay your loan off quickly, or have guaranteed repayments. We cannot determine which loan is right for you without a full understanding of your financial circumstances.
I have access to a range of lenders – these include the major banks, second tier lenders and credit unions. We can source you a loan from the lender of your choice from those we have a relationship with.
The Reserve Bank of Australia meet on the first Tuesday every month to determine the official cash rate for the country. The lenders then use this information to set their own rates. Mortgage brokers do not set rates.
When we talk about a ‘loan product’ we are referring to the thousands of options that are currently available for you for your loan. Each bank (or lender) has loads of different loan options – low doc, package loans, re-draw facilities, plant and equipment loans, fixed, interest only, interested in advance, variable, introductory variable… the question you face as a consumer is “Which loan is right for me?” And that is where a mortgage broker comes in. If you go direct to the bank, you will only be offered the loan options available through that one lender. As your mortgage broker, we do all the leg work for you. We are across many lenders and their loan products and our sole purpose is to find the right loan for your needs. Your full financial situation would need to be reviewed prior to acceptance of any product or offer.