Five Things You Should Know About Working with a Mortgage Broker

When it’s time to acquire a home loan for your new property, the question will be raised as to whether you should hire a mortgage broker or not. And while you may know that they work for you to get you the best deals, you may not know more about how they operate, or why.

With a little extra knowledge, you can save yourself stress and worry, and find yourself the right mortgage broker for you!

They are paid on commission

It’s important to remember that for their hard work, your mortgage broker deserves to be paid for sealing that extra deal. As such, they’re often paid on commission, meaning that they get a cut of the fee on your mortgage.

Usually it’s about 1% of the total mortgage fee, but it’s not unheard of for them to waive this, and allow the bank to pay it instead.

If you decide to take them up on that offer, you’ll end up paying more for this over the long term, as it’s added into your mortgage and so you’ll pay more in interest, but it’ll help you if you can’t afford the upfront cost.

The mortgage broker acts as a conduit between you and the bank

Your mortgage broker essentially works to find the best and most relevant loan options for you based on your unique circumstances.

As such, they completely remove the need for you to ask these questions to the bank – they’ll know best which offers could apply to you, and exactly what you should be searching for.

What this also means – is this will save you the countless hours you need to spend on the phone to the banks working out the best offers, and it’ll save you the endless amount of paperwork needed to process your loan application.

They’ll take care of that for you, making them an absolute godsend if you’re unsure about the financial world in general.

You are paying for your own time

While paying 1% of your mortgage loan as an extra can seem like a harsh price to pay, you have to remember that not only does your mortgage broker find you the best deals, normally saving you more than the 1% fee, and making everything more manageable – but they also save you your time.

Without them, you’ll be required to know the answer and be able to make a decision on many different forms, files, and know all the regulations of the financial world. Rather than do this yourself, why not pay someone to reduce this headache?

There isn’t much of a downside

Besides the initial cost to have their services, there isn’t much of a downside to having a mortgage broker on your side. They offer peace of mind, knowledge, and handle all the work for you – what more could you ask for?

Find yourself a good broker and making one of the biggest commitments of your life will be an easy task, rather than a seemingly never-ending nightmare. More details in this post:

There are lot of them – so ask around!

As with any industry, there will be those out there who could take advantage of your good faith in order to get better deals on commission for themselves, or perhaps they aren’t willing to do the extra legwork needed to get you the best deals.

In that case – simply ask around. If your potential mortgage broker’s Melbourne based, you can ask if they’re a member of the MFAA, a body of mortgage brokers that must adhere to a strict Code or Practice in order to retain their membership. Even if your mortgage broker isn’t in Melbourne, ask if it’s a member of the MFAA.

A few extra questions can help you get the best deals for your home. So ask around – get referrals, and remember to return that favor if someone ever asks you!