Buying or building a home can be a daunting process.
A broker acts as a go between you and many lenders – making sure that the loan you choose works best for you.
ALL BROKERS HAVE A LEGAL OBLIGATION TO PROVIDE A “RESPONSIBLE LENDING” POLICY TO ENSURE THAT LOANS FITS A CUSTOMERS NEEDS.
CHECK FOR ACCREDITATION
Choosing the wrong broker can cost you money if you end up with a loan that doesn’t fit your needs.
So before meeting with your broker ensure that he or she has these qualifications.
- CERTIFICATE IN MORTAGE BROKING AND FINANCIAL SERVICES
- MEMBER OF FINANCE BROKERS ASSOCIATION OF AUSTRALI [FBAA ] OR MEMBER OF MORTGAGE AND FINANCE ASSOCIATION OF AUSTRALIA [MFAA]
- Member of AFCA – AUTRALIA FINANCIAL COMPLAINTS AUTHORITY
You have a right ask for a copy of these accreditations before doing business.
WHO IS ON THE BROKERS LENDING PANEL
A broker’s panel tells you a lot about their experience.
Ask how many lenders they use and why – get a fact sheet from your broker when you decide on a loan. A good broker will make sure that you understand the product and other fees and charges and why one lender may meet your requirements better than another.
The lowest interest rate is not always the best loan as the product may have hidden fees and charges,
Some brokers charge you a fee others don’t
Typically a broker receives about 0.4% of the value of the loan averaging around $1600.00 which is paid by the lender NOT YOU. Some brokers also get a trail others opt not to if they use an aggregator. An aggregator is like a back office that that acts as an intermediary and ensures compliance- acting on your behalf to ensure all dealings are suitable for you what you want and what you need. This provides a great deal of security and protection for clients.
WE DO BUSINESS DIFFERENTLY
Our clients are NEVER ASKED TO SIGN AN APPLICATION FORM!
Because we think that filling in a 5 minute fact find gives us all the information we need to
- Assess your borrowing capacity
- Give you a choice of Lenders
- Make sure you are satisfied with the product- the rate and the re-payments
- Your details will not appears on your credit reports as we never “shop loans around”
- Try to pre-empt any questions the lender may ask by submitting comprehensive broker notes to finance providers before they ask.
- We only ask for supporting documents once our back office has double checked our work to ensure we comply with the ‘suitable lending” legal requirements.
A COPY OF OUR FACT FIND IS AVAILABLE ON THIS WEBSITE.