How to choose the right mortgage broker
Updated: Jul 29
A mortgage broker can save you time and money as they will do the research for you and seek out the best product to suit your needs.
These days there are many options when it comes to getting a home loan and looking for the right loan for your current financial situation can be overwhelming to say the least. Many people choose to seek the assistance of a mortgage broker.
So what should you look for when choosing a mortgage broker?
Whether you are buying your first home, adding to your property portfolio or refinancing, you need to work with a qualified mortgage professional. Laws can be complex in the world of finance, and legislation is constantly changing. You don’t have to keep up with all this in detail, but it is always to your advantage to have a general handle on what you can and cannot do.
Mortgage brokers have extensive and specialised knowledge and are invaluable to you at various stages of your financial life. Your mortgage broker should be accredited under The National Consumer Credit Protection Act and hold qualifications such as Diploma in Financial Services for Mortgage Broking. There are stringent laws in the profession concerning continuing education and holding current licenses. You should understand your brokers qualifications and what the general requirements are for someone who works as a mortgage professional. Some things to look for are whether they are accredited with the relevant industry bodies such as MFAA or FBAA.
A membership is also required in dispute resolution, such as the Credit and Investment Ombudsman. This helps borrowers who may need help to determine an outcome to any disputes that may arise.
All brokers must be registered with the Australian Securities and Exchange Commission (ASIC) and must hold either an Australian Credit License (ACL) or be a credit representative of an organisation that holds an ACL.
In most instances, brokers will be accredited with an aggregator, which allows the broker to access the products of many banks. This enables the broker to find a loan that is the best possible match for your needs. The aggregators and banks have regular training and information days for brokers to keep them updated on any changes in the industry or bank policies. This ensures that your broker is well informed and can give you the best possible care.
There are certain products within the industry that also require a specific qualification so that the broker can offer the product to a client. An example of this is in the aged care products and limited recourse lending which is used for Self-Managed Super Fund borrowing. If you need help in these areas, ask your broker if they have the relevant accreditations as these are specialised areas.
Using a broker with the above qualifications, you can be confident that you are dealing with an industry professional, who’s is capable of looking after your financial needs with regards to your borrowing requirements. You should be well informed and comfortable about what you can achieve financially. Being informed gives you better choices.
If you are looking for a local professional mortgage broker Ask Ang. She has all of the above qualifications and 20+ years of experience.