Debbie Shankar - 26 May, 2014

How to Choose the Right Mortgage Broker for Your Situation

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There are hundreds, possibly thousands of mortgage brokers who can help you. Many have years of experience and all the right qualifications and credentials, but not all will be suited to your situation or circumstances.

Types of brokers

Mortgage brokers deal with mortgages, right? Sure all mortgage brokers deal with mortgages, but this is a generalisation, as some deal with residential home loans and mortgages, whereas others deal with reverse mortgages and equity release. Some mortgage brokers may be able to do both.

It is also important that you don’t confuse mortgage brokers with brokers. Brokers can deal in, but are not limited to, car loans and personal finance, debtor finance, commercial property and business loans, and equipment leasing.

Important questions to ask a mortgage broker

When you find the right type of broker you then need to work out if the broker has a high level of experience, is registered, and has a broad panel of lenders. This will then give you reassurance that you’re dealing with a professional who has a good selection of loan products to choose from.

Mortgage broker experience

When you first talk to a mortgage broker, ask them how many clients they’ve helped, and how many home loans they’ve successfully had approved. An experienced broker will make the mortgage process simplified and will be able to:

  • Identify your loan requirements.
  • Match these requirements to home loan products.
  • Assess various home loan products for their suitability and offer you a comparison.
  • Define home loan costs.
  • Suggest ways you can increase your chances of home loan approval.

Mortgage broker registration

In Australia, it is illegal for a mortgage broker to trade without holding an Australian Credit License (ACL) with the Australian Securities and Investment Commission (ASIC). Before dealing with any mortgage broker make sure they’re registered.

Mortgage broker’s lender panel

Before you select a broker make sure you ask about the size of their lending panel. A lending panel is the number of lenders that a mortgage broker deals with. Not all mortgage brokers will have a vast selection of lenders on their panel as they have to meet selection criteria to be approved by a lender to offer their home loan products.

A good lending panel will consist of large and small banks, credit unions, building societies and other specialist lenders. The smaller the selection of lenders on a mortgage broker’s panel, the less choice you’ll have for home loan products. This can reduce your chances of finding a lender and home loan to suit your situation, and may be costly in terms of interest rates and fees and charges.

Are you in search of a mortgage broker? If so, then contact eChoice TODAY.

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