Applying for a home loan yourself can be treacherous and stressful if you aren’t familiar with the loan application process. Thus, employing the skills of a mortgage broker could take a huge load of pressure off.
A good broker can help home buyers navigate the home loan application process and answer any questions along the way.
The right mortgage brokers will look at:
- your personal financial situation,
- your current and future goals, and
- guide you along your home loan journey of reaching them.
Don’t just settle for the first mortgage broker you find or the mortgage broker your parents have been using since they bought their first investment property. Finding the best suited mortgage broker to suit your home loan needs is quite simple, and here’s how to do it.
What Type of Home Loan Do You Want?
The first step is to do some of your own research to identify what type of home loan you want.
For example, if you’re building a house from scratch, would the home loan structure of a construction home loan work for you? Or, perhaps you receive bonuses/ commission regularly, a home loan with a variable interest rate and features like an offset account or redraw facility might suit you well in that case.
There’s nothing wrong with asking friends and family or just Googling recommendations of mortgage brokers, but there are a few ways to evaluate how good they are.
Finding Mortgage Brokers Online
You can use a directory to find a mortgage broker, or just search it on Google.
Before you click through to their website, have a look at their mortgage broker reviews on Google. The reviews found on Google are less biased than the curated testimonials listed on the mortgage broker’s website.
Once you’ve reached the mortgage broker website, you will get a feel for the company’s professionalism.
Their website should state that they’re registered with an Australian Credit Licence. They should also note whether their mortgage brokers are qualified and certified.
Both of these things are non-negotiable and are a prerequisite when choosing a qualified mortgage broker. Generally, the best suited lenders will also be part of the Mortgage and Finance Association of Australia (MFAA) or Finance Brokers Association of Australia (FBAA).
Once you’ve confirmed their credibility, take a look at what they offer. If they offer the service you require or work with lenders who offer the type of home loan you want then you can go ahead and contact one of their mortgage brokers to arrange a meeting.
What Questions You Should Ask When Choosing a Mortgage Broker
After doing your research to compare home loans, you should know which types of home loans would best suit you. You can use this knowledge to assess the recommendations that the mortgage broker makes for you.
One of the following could happen:
- the mortgage broker can confirm your research and offer what you thought would suit you best suited, or
- the mortgage broker can suggest something even better that you hadn’t even considered.
A mortgage broker will make home loan suggestions, but a good broker will be able to suggest home loan options that are tailored to home buyers’ personal circumstances and future goals with a lot of planning.
Therefore, you should question the mortgage broker as to why they suggested a certain loan option, how, and why it will benefit you and your goals specifically. That way you can establish whether it’s an inappropriate or risky loan.
Ask the mortgage broker about lenders mortgage insurance (if needed) on home loans. A mortgage broker will comprehensively explain what it is, how it works, and why it’s required with a home loan. The best suited mortgage brokers will look for ways that you could waive LMI and effectively save money on your home loan by doing so.
What Qualities Do The Best Suited Mortgage Brokers Have?
When it comes to finance and mortgage broking, there are certain qualities that you should look for.
Any good broker working with home loans should:
- have good communication skills,
- be patient, and prepared to answer questions,
- listen to you – really listen,
- not make you feel pressured in any way
- be organised,
- have good time management skills,
- follow responsible lending laws,
- be able and willing to negotiate better fees and prices for you, and
- be transparent.
How The Mortgage Agency Can Help
At The Mortgage Agency, we work closely with a wide range of different lenders and offer a range of home loan products, from traditional home loans to home loan refinancing to access equity.
Our mortgage brokers compare these different home loans with you and offer professional advice on which home loans could best suit home buyers’ financial needs.
We help our clients through the application process and liaise with the credit provider for the best suited product.
Most importantly, we believe in best interest duty and serving the needs of our clients and recommending the right solution based on their unique needs.
While a good mortgage broker will have certain finance association qualifications and poses particular qualities, it boils down to whether they’re the best suited in their field at meeting your personal home loan needs.
It’s no use identifying the best mortgage brokers that deal with home loans for investment property when you’re a young adult who’s apprehensive about applying for your very first home loan with quite a small deposit.
Do your home loan research with different lenders, and do your mortgage broker research. Sit down with a mortgage broker and allow them to talk about themselves and their services to you. Make sure they listen to your financial and home loan needs and make recommendations accordingly.
To make an appointment with one of our mortgage brokers, contact us today. We won’t claim that our mortgage brokers are the best suited – we’ll leave that up to you to decide.
Please note that every effort has been made to ensure that the information provided in this guide is accurate. You should note, however, that the information is intended as a guide only, providing an overview of general information available to property buyers and investors. This guide is not intended to be an exhaustive source of information and should not be seen to constitute legal, tax or investment advice. You should, where necessary, seek your own advice for any legal, tax or investment issues raised in your affairs.