What Does a Mortgage Broker Do?
An Australia mortgage broker job does not involve lending money to a borrower but to provide help in procuring a loan as per his needs.
Brokers have a number of lenders listed in their panel from whom they obtain the loans. They have to register themselves with the agents to become eligible in offering their products and have to keep themselves updated with the latest products that are available.
The broker procures the same loan that you would have got from a building society, a bank, a non-banking organization or a credit union if you had approached them directly. Most of the brokers procure the residential loans without charging any fees as the lender pays them a commission that neither changes the loan type nor the interest rates.
A mortgage broker can provide assistance on matters of credit only when he:
- Holds an “Australian Credit License” or becomes a “Credit Representative” of an “Australian Credit License Holder”.
- Holds a diploma in “Financial Services” or “Finance/Mortgage Broking Management”.
- Achieves at least 30 hours of “Continuing Professional Development” or CPD in a year.
- Maintains a register on “Internal Dispute Resolution” procedures and follows them.
- Holds an “External Dispute Resolution” and “Industry Body” membership.
- Discloses all the commissions he has received.
Now that you have an idea about a mortgage broker, you may be smart in using his services to get your next home loan because of the following eight reasons:
- Saving time – The variety of offers available in the mortgage market is infinite and can overwhelm you completely. You can either do your research about the lenders and the products offered by them or get the help of a broker who already knows how to get the loan.
- Saving money – Take the help of an agent who offers his services free of cost to get the best home loan for you easily after comparing between hundreds of different type of home loans that the lenders offer. The broker will help whenever you ask for it.
- Getting what you choose – You can choose any of the 600 different types of loans which are offered by more than 30 lenders in the broker’s panel.
- Finding an appropriate credit – The cheapest interest rates do not mean that you have got the best deal. The agent can recommend the loan that will suit you best by considering your plans and requirements. You can build your wealth only if you get the most appropriate loan.
- Avoiding pitfalls – Products that seemingly offer great deals may attract charges, fees or penalties without your knowledge. Or you may not get the future flexibility you are looking for from the loan. Your broker will help you avoid having regrets later on a loan that you have taken.
- Contacting you – You do not have to go to their office. Instead, they fix an appointment with you and conduct the business from the comfort of your home or your office at any time of the day, or the evening or the weekend that is suitable for you.
- Doing all the legwork – Your broker will do all the legwork required for preparing and submitting your application and working all the time with the lender until the settlement is done.