Frequently Asked Questions
Are you wondering what is a mortgage broker or a finance broker, what do they do and how much they charge for their services? Click here for our answers to these & other most commonly asked questions we hear from our clients.
A mortgage broker is a financial professional who specialises in helping clients find a loan to purchase a house. They work with a client to understand their needs, and to source lenders that will provide home loans on agreeable terms that will suit a client’s requirements. When a home loan term is agreed upon, a mortgage broker may then help a client with documentation and the application process, also they’ll help with loans to refinance and finding cheaper rates.
A mortgage broker acts as the middleman between a client and a home loan lender. They look at a client’s current finances and borrowing power to work out an agreeable home loan amount and repayment term. A mortgage broker will make suggestions of the maximum amount a client should borrow before finding a suitable lender.
A finance broker is the go-between who organises a loan on a client’s behalf. Similar to a mortgage broker, a finance broker may be tasked with finding a car loan, medical loan, equipment loan or any kind of specialised loan.
A finance broker works with a client to find a suitable loan term and lender. They will typically look at a client’s current circumstances to work out the maximum amount they can borrow, and an agreed loan term. Finance brokers can specialise in anything from marine finance and home loans, to asset finance for doctors.
Mortgage brokers generally don’t charge a fee for their service, though they do make a small commission from the lender. To get referrals, it’s in a broker’s best interest to find suitable loans and work in the best interest of the loanee.
If you’re looking for a loan at an agreeable rate, a good mortgage broker will be able to source you a loan at no cost to you. Their access to a wide range of lenders ensures you’ll be able to quickly find a loan term that suits your requirements, and vastly improves your chances of having a loan approved. A mortgage broker will also be able to offer you advice on the maximum amount you can borrow, or ways you can improve your borrowing power.