10 Questions You Need to Ask Your Mortgage Broker
Before you work with a mortgage broker, establish if they are reputable. Here are 10 questions you need to ask to ascertain this:
Q1. How many years have you been a broker for? Always find out how much experience a broker has. The more loans they have written, the better.
Q2. Do you have a license? All Australian brokers must be licensed by the Australian Securities and Investments Commission (ASIC).
Q3. Are you a member of a brokerage association? Membership with the Mortgage and Finance Association of Australia (MFAA) or the Finance Brokers Association of Australia (FBAA) is a sign of a solid reputation.
Q4. Do you have any referrals? Reputable brokers will have a list of satisfied clients that you can call.
Q5. What are your fees? Ask the broker if they charge for their advice. Some will, others won't. All brokers are paid a lender's commission when you take out a loan
Q6. Who are the lenders on your panel? Brokers must gain lender accreditation to recommend their loan products. A reputable broker will have a selection of lenders such as banks, credit unions and mutual lenders.
Q7. How many lenders will you recommend? Many brokers have 12 to 30 lenders on their panel. However, most will recommend only a few, so you need to make sure you're happy with the selection.
Q8. Who's your favorite lender? Many brokers have a favorite lender, so ask why this is this case. Some will say good customer service and lowest rates, while others just like the commission they are paid.
Q9. How are your recommendations made? Good broker's use software, strong customer service skills, and logical thinking.
Q10. What post-settlement service do you offer? A reputable broker works with you after the loan is settled. This helps you to avoid problems.
Any advice provided in this publication should be considered General Advice as it does not take into account your personal needs and objectives or your financial circumstances. You should therefore consider these matters yourself before deciding whether the advice is appropriate for you and whether you should act upon it.