Know your broker

Shopping around for properties can be a lot of fun, but looking for good home loan advice, particularly if you’re just starting out can be a bit trickier. Finding an experienced mortgage broker is crucial to keeping your search stress-free.

When working with me, you can be assured I’ll give you honest and appropriate loan advice for your circumstances to help you every step of the property journey.

Here’s a few other essentials you should keep in mind.

Is the broker a MFAA Credit Advisor?
A MFAA member has achieved a set education and experience level and abides by a strict Code of Practice. This is the first step to providing sound advice.

Which lenders does the broker work with?
Some brokers only consider products from a couple of providers, while others offer loans from over 30 different lenders. Having a broker with access to a larger network of lenders gives you a greater range of solutions for your financial needs.

What types of fees does your broker charge?
Ask the broker to clearly specify what fees and charges are associated with their services. How much of this fee is will often depend on your loan proposal.

How does the broker get paid?
Most brokers aren’t paid by their client, instead they’re paid commissions from the lenders they work with. As such, their role is to arrange the right finance deal for you, not themselves. Some lenders pay higher commissions than others and clients shouldn’t feel like their broker is favouring these lenders or letting the size of the commission cloud their judgement. Additionally, brokers should be open with their clients about all commissions they make.

How does your broker compare loans and decide which is right for you?
Brokers should be able to provide a clear explanation of the criteria and process they use when comparing loans. Clients should only be offered products which clearly suit their needs.

What is the true (comparison) rate of the loans recommended to you?
The “true” rate considers the loan interest rate as well as all fees and charges, to give a better indication of the actual cost of the loan.

Do they have proof of their professional qualifications and experience?
All qualified brokers will have certificates confirming their qualifications and professional memberships.

Does the broker have professional indemnity insurance?
Make sure they do. This covers them if they’re sued for negligence or breach of professional duty.

What privacy guidelines do they follow?
They should comply with the Privacy Act Credit Reporting provisions and the National Privacy Principles for handling Personal information.