Why use a mortgage broker?

One can become overwhelmed when shopping for a loan, for their first home or even for an investment property. There are so many banks and lenders in the market and each financial institution has many products to choose from. How do we know which product is good for us? In times like these it is wise to use the services of a mortgage broker.

What does a mortgage broker do?

As the name suggests, a mortgage broker is someone who specialises in home and investment loans. They will determine your financial needs and do all the legwork for you. From researching the most suitable loan on the market (across all different banks and lenders), to ensuring the best possible chance for an approved loan application. A mortgage broker can assist you with any questions you have; regarding how much you can borrow, deciding whether to go fixed or variable and what are the best products for your situation. If you have a toothache, you go to the dentist. You consult someone who is trained to assist you with your specific needs. The same should be true for finance. At Finance Detective, as one of Australia’s top financial solutions providers, we will find a loan that is right for your specific situation.

Why use mortgage broker when I can go to the bank directly?

Of course you can go to the banks directly and speak to their respective loan specialists. However, you will only be offered loan options from that one lender (unless you go to many different banks). Moreover, their loan specialist will only have a good understanding of their own products, making their opinions biased. Another disadvantage is that if your situation does not fit their credit policy, resulting in your application being declined, your chances of being approved by another lender may be jeopardised. A mortgage broker has access to many lenders and many different products, and will find a loan that works best for you.

Which lenders do mortgage brokers deal with?

You don’t want a to consult a broker who only deals with two or three lenders. The more lenders they work with, the more variety you will have access to, thus increasing your options. The mortgage brokers at Finance Detectives have access to all major banks, second tier lenders and credit unions. Ask us for the list of lenders who make up our panel.

Will a mortgage broker recommend a lender that pays the most commission?

No. Brokers are required to disclose the commission that they receive for organising a loan for you. ASIC now governs and administrates the legislations on this matter. This means that a mortgage broker’s recommendation is more transparent than ever before. It should also be noted that lenders’ commission rates are quite similar across the board. At Finance Detective, we believe that our clients’ interests are the most important factor in determining our lender recommendations. This in turn, will lead to a long relationship with our clients, something that is extremely important to us.

Are there any fees when I use a mortgage broker?

There are brokers that charge fees for their services, however, they are required to inform you upfront if there are any applicable fees. When you take out a home loan through Finance Detective, we do not charge a service fee, our mortgage brokers are paid a commission by the bank or lender. However, if you have other specific needs such as an urgent application (and we are able to assist), we may charge an additional fee. Check with us for more information.

I have difficulty understanding the terms in my loan documents, can a mortgage broker help?

All Financial institutions issue their own documents. Like any legally binding paperwork, there are terms and industry jargon that may be overwhelming. The team at Finance Detective are here to help you. We also have a mobile lawyer who we will recommend if you require legal advice on the documents. We have a highly skilled and extremely friendly team, who will work with you to manage every step of the process. From understanding your financial needs, to acquiring that loan for your new home or investment.