If investing in property wasn’t challenging enough already, there is more to add to your headache. Endless paperwork, stamp duty, and above all, getting a bank to give you credit could be the most exhausting bit of it.
The right mortgage broker could help you make all the difference in bagging a deal. Whether you are looking to buy a property or engage in home renovations Brisbane has open, brokers could be your saviours in making the maximum profit and be your spokesperson to save you from terrible credit interests.
Today, the role of a mortgage broker is not only to get you the right mortgage that could suit your budget. They also act as financial advisors, building a trusted relationship with you, and offering you the best guidance in choosing the lender.
For a professional association that could be this investing, it is only smart that you prepare before you hire someone to represent you. Here are some things that you can note while you are on the lookout for a mortgage broker.
1. Client Testimonials
In the present day scenario, if there is one thing that is worth more than your degree and experience, it is the recommendation you come with. If you have a good reference, you have crossed half the hurdle.
As a client, the primary objective is to ask around in your personal network for good brokers. You will thus get first-hand reviews and recommendations from those who personally know about the referrals.
If you already know a contact among house builders Brisbane has, you will also be able to find someone who caters to your particular requests. Speaking to their clients could give you a better understanding of how the broker works and know their process before you approach them.
2. Professional Credibility
Once you get one or two contacts about brokers who work in the field, it is equally important to check on their professional expertise. A reliable broker would be able to foresee how taking a mortgage could affect your finances in the long term.
They should also be able to provide valid documentation to prove why a particular offer from a specific lender is more suitable for you and why others are not. This will include detailed descriptions of the loan terms, features, interest rates and any additional fees that could occur during the transactions.
However, it is not always easy to know who does this best. That is one reason why the ASIC has come up with regulations to ensure that all brokers have proper authorisations to offer their services. They should be an Australian Credit Licensee holder, which requires them to have undertaken a minimum required training. It also demands that the brokers adhere to the ethical code of practice and take part in professional development activities every year.
Such credible brokers would also be members of professional organisations like the Finance Brokers Association of Australia and the Mortgage & Finance Association of Australia. That said, such organisations would also be excellent platforms to find your broker.
No, this is not a horoscope reading, yet compatibility between the broker and you is the one thing that you shouldn’t overlook. First, put in simple terms, they are playing the part of a credible personal advisor to you, That means, brokers should be able to understand what you want and what you can offer.
They also need to be well aware of your circumstances, both financially and personally. If you have to be able to communicate with the broker on why you cannot invest an amount, they should be able to understand it.
The next factor, as mentioned before, is one of the reasons you hire a broker; that is to make things easier for you. All the financial jargons and terminologies could be overwhelming for someone who is not familiar with it. So you might need someone who has a good rapport with you to present it to you in layman’s terms and encouragingly answer all your questions. The fact is, even though brokers do their best to communicate, few people might still find it patronising.
As all the dealing revolves around money, it is imperative that there is no room for error caused due to misunderstandings. Most broker-client relationships are meant for a long term and good compatibility holds the key to that.
They are the ones you approach in future for any discrepancies, and they also have to be confidential about every single step. Without a relaxed, trustworthy relationship, and proper communication, it is impossible to maintain the association.
4. The Brokers’ Network
An important aspect that could prove to be a lot more beneficial than anything else is how extensive the contacts of your broker is. When we say connections, we mean lenders and banks that could turn useful for both parties.
Most brokers might have one or more particular lenders they favour just like how a renovation builder Brisbane may favour a broker. This is essentially a good thing, as this might enable the broker to be influential and pull strings in your favour which you might not be able to do otherwise. Their knowledge on the background check criteria and the application process a lender uses could prove to be a valuable experience in advising you.
5. Fees and Commissions
Last but not least, you should hire a broker whom you can afford. After all, you are hiring someone to reduce your expenses in at least one way.
According to Australian law, a broker is obligated to state clearly how they charge you. Also, it is the lender who pays commission to the brokers rather than taking a fee directly from the client. You have to discuss the terms with the broker and be upfront about the agreements before you proceed further.
A good mortgage broker could pave the way for your dream property. So bear these tips in mind while you discuss your future with a potential broker, and you can easily pull off a professional relationship that could lead you to having an excellent property portfolio.