Purchasing a home is the largest financial investment you are likely to make in your life, and whether you are a first home buyer or looking to expand your portfolio, there are a variety of loans to secure. The best mortgage broker Sydney can help you secure a home loan while doing the legwork for you. Don’t sign up with just any broker, search for the broker who has the experience and qualifications, but also, who will be able to best meet your needs.
So, how do you find the best broker for your situation?
Research
Before you begin the search journey, you need to do some research. The first step is to do some online research to get an idea of the type of loan you are looking for. The broker is going to do the legwork to find you the perfect loan, but you will be in a better position to assess the potential loans if you know what you are looking for.
Payment
A lot of brokers don’t charge you directly for their services, rather they take a commission from the lender who provides you with your loan. That might sound like a great idea, but it also means they might not have your best interests at heart. They may be more likely to guide you toward a home loan that benefits them more.
A broker will either work for upfront or trail commissions. The former secures them a percentage of the loan’s total value. So, the higher your loan, the bigger the payoff for brokers. This is something to remember if a broker is pushing you toward a loan out of budget. The latter provides brokers with a percentage of the mortgage, and they receive is over the loan’s life.
Qualifications
It should go without saying but be sure the broker you choose has the necessary qualifications to do the job they are promising. Ask them directly about the experience and qualifications they have. The minimum you should look for is a university degree and Cert IV (in Finance & Mortgage Broking). However, if a mortgage broker is a member of the MFAA they will likely have additional qualifications.
Lender Panel
Before you choose your mortgage broker, ask about their lender panel. Every broker is restricted by which banks they can access. You want to work with a mortgage broker who has access to a wide variety of lenders because it means you will get the best possible loan for your situation.
Questions To Ask
You may have your own list of questions to ask a potential mortgage broker, in addition to asking how they will be paid. You can ask whether they are associated with a big bank or if they are owned by a bank. Additionally, you should ask about their training and experience, and how many lenders are on their panel.
Be sure to ask about the top lenders they work with. If they consistently secure loans with the same few banks, you may want to keep looking because you want to work with someone willing to look hard for the right loan.
If you are a first-home buyer, you need to work with someone who specialises in that part of the industry. Likewise, if you are an investor, you want to work with a broker who is focused on that part of the business.
