Although in many countries the use of mortgage brokers may not be popular as a buyer has to pay their fees, in Australia, as it is the lender that pays the mortgage brokers fees, they are a popular choice to be used and in fact 50% of all loans in Australia are processed with the assistance of a broker. Probably due to their popularity, it has become easier to find a broker and now all you have to do is go online to somewhere like Mortgagebrokerco.com.au. Once you have found your broker you will have to provide them with the information to do their job but having done so, you can virtually sit back and relax as they will take care of everything.
The first information you will have to give them is what sort of house you would like to purchase and then give them a rundown of your finances. Armed with that information, the broker will then advise you as to how much you will be able to expect a loan for and what type of loan will probably be best for you. Once these issues have been agreed, the broker will use their experience of knowing the different lending agencies, to quickly and efficiently find you the best lender that will accept your terms.
It is perhaps odd that mortgage brokers are called mortgage brokers as, although most of their work may be associated with buying homes, they also assist with any other types of loans as well, both personal and business. The experience of broker’s dealings with banks and other lending establishments is therefore extensive and so they are well aware of which particular establishment to visit first when it comes to your loan, regardless of what it may be for.
In Australia, mortgage brokers come under the regulative body of the Australian Securities and Investments Commission who ensure that, even though the brokers are paid by the lender, they keep the buyer’s needs as their first interest. This is an arrangement which is perhaps unusually acceptable even to the lenders that have to absorb the broker’s fees into their profits but the re4ason for that is; the brokers bring them extra work and thereby extra profits.
As most of us will probably only ever by a home once in our entire lives, it is understandable that we may not be familiar with all the different terms that may be used but any that we need to know, will be appropriately explained to us by the broker to avoid any confusion. Some of these terms are: Offset account, all in one loan account, professional package, redraw facility, direct salary credit, loan portability and top-up and although some of these may be of use to you, many of them as well as having their benefits, also have their disadvantages and so those need to be carefully explained to you by the broker before you agree to any of them. However, some or all may be conditions on which the loan was given and so you may not always have a choice.