According to recent data, more Australians are working with brokers to obtain home loans than ever before. Mortgage brokers have achieved their highest-ever residential home loan market share despite overall reductions in lending due to the more stringent banking regulations.
On average, six out of 10 Australians are getting their home loan through a broker. However, not all brokers are the same and choosing the one that will work the hardest and smartest to find you the right-fit finance product isn’t always straightforward.
When selecting a broker it’s important to know what to look for. Here are three questions to ask when choosing a mortgage broker:
- What experience do you have and are you licensed? It’s important to check a broker’s credentials and qualifications before working with them. How long a broker has been in the industry is a good indication of their skill level and reliability but always ask for testimonials from past clients. The majority of Australia’s major lenders require brokers to hold at least a Certificate IV in Financial services, or an Australian credit license or be authorised under a licensed loans lender. Look for lenders that are members of either the Finance Brokers of Australia (FBAA) or the Mortgage and Finance Association of Australia (MFAA).
- What range of lenders do you have access to? To get you the best loan, your broker should be able to offer you products from a wide variety of different lenders. Remember to ask how many lenders they have access to as well as a full list.
- How do you determine the best loan and lender for me? A broker’s primary job is to source the best loan for your needs as well as what loan structure makes the most sense. A good broker will assess your requirement and then present you with a variety of different options that suit your needs, all with research and ratings to back up their selections. Some of the factors they should consider include the best possible rates, fixed or variable interest rates or whether splitting the interest rate between the two is a better fit. At a much more basic level, the lender needs to be willing and able to get the job done for your income and loan requirements.
As a medical specialist, it also pays to go beyond this basic checklist and look for a broker who knows how to maximise the benefits of your professional status among lenders. There are many benefits – potential for zero-deposit loans, non-PAYG earnings, better rates and more – that may not be maximised by a lender without experience in loans for doctors and medicos.
To discuss your needs, please don’t hesitate to contact any of us at MediPro Capital Finance.