What is a mortgage broker?
A mortgage broker is a third-party intermediary who will act on your behalf to arrange your home loan application. Rather than directly working with a bank or financial institution, a mortgage broker is able to work with a variety of lenders to find the best home loan that suits you and your needs.
A mortgage broker will assist you throughout the home buying process by providing you with pre-approval so you can develop a better understanding of your borrowing capacity as well as assisting you throughout the entire application process.
When should I engage a mortgage broker?
- When you are thinking of buying or investing.
- When you want to see where you stand and how much you can afford to borrow.
- If you are a First Home Buyer, it helps to engage early as assistance and experience makes all the difference in planning and budgeting!
What are the benefits of using a mortgage broker?
The best interest duty
Brokers have a statutory obligation to act in the best interests of their clients and a responsibility to prioritise consumers’ interest when providing credit assistance. This obligation is known as the best interest duty.
Under this legislation, brokers must be able to prove that they have recommended the most suitable loan for their clients, meaning they will always be working to meet your needs.
Consumers best interests are regulated by ASIC which assess the validity of a recommendation based on cost and non-cost considerations which could affect a clients best interests.
The best interest duty does not apply to banks, meaning that if a customer chooses to use a bank directly, the bank can offer advice and products which serve to meet their best interests, not those of the borrower.
For customers, this legal duty offers a peace of mind knowing that their broker is legally required to work in their best interests and receive unbiased advice.
Finding the right home loan can be a stressful and confusing process. If you choose to use a broker, they will do all the leg work in finding the right home loan for your needs and support you throughout the entire application and settlement process.
A brokers role includes completing all the necessary paperwork, sourcing pre-approval, helping you apply for any government grants/incentives you may be entitled to, and ensuring you are up to date with the progress of your application.
Free of Charge
While there are many hidden fees throughout the home buying experience, brokers are usually not one. In fact, majority of brokers are paid by the lender after the home loan is approved, meaning you can engage a broker free of charge.
Brokers have extensive knowledge about 100’s of products so they are able to recommend the best ones for your circumstances. They are highly informed about loans and fees, meaning that they can guide and educate you throughout the process to make the most informed decision.
Lenders change policies depending on market climates and mortgage brokers are up to date on this information, meaning that they can make more reliable recommendations based on these conditions.
Brokers can make the difference between being approved or declined for finance, so it is important to have an expert on your side to ensure you choose the right product for you.
Mortgage Brokers become trusted advisors who can help you throughout the entire home loan process and beyond. Most brokers get to know and build strong relationships with their clients. Over time, clients won’t have to keep ‘telling their story’ every time they need finance approval and our brokers will have an even greater understanding of how to find the perfect home loan for your needs.
How can Dominion Finance help you?
Have you been considering whether using a mortgage broker is the right option for you? Come have a chat to one of our experienced mortgage brokers at Dominion Finance to learn more about how we can help you through the exciting home buying process.
Call us on 02 6162 2740 or email us at firstname.lastname@example.org to make an appointment today!