Working with a Mortgage Broker: A Complete Guide

A mortgage broker can be valuable in helping you navigate the home loan market.

We are the go-between with lenders and must work in your best interests when suggesting loans.

What Mortgage Brokers Do

A good mortgage broker works with you to understand your needs and find suitable loan options.

They handle much of the paperwork and guide you through the entire process from application to settlement.

Core Services Include:

• Assessing your borrowing capacity (this is a big one — we don't mean to be harsh, but we will alway be critical)

• Finding suitable loan options (the fun part of the job)

• Explaining loan features and costs

• Managing loan applications

• Guiding you through to settlement (it's true we celebrate hard when we get you there)

Understanding Broker Payment

Most brokers receive payment through lender commissions, meaning you don't pay them directly. However:

• Some brokers charge direct fees

• Commission rates can vary between lenders

• Some brokers receive higher fees for certain loans

Key take away: always ask about payment structures upfront

Before Meeting Your Broker

Essential Preparation

1. Verify their license on ASIC Connect's Professional Registers

   See our licence and more details here

2. Create your loan requirements list

   We've created a guide for you here

3. Research basic loan options

   You are here, so that is a fantastic start

4. Gather financial documents

   We go on and on about documents, but it really speeds everything up

5. Prepare questions

   There are no silly questions, just silly markets

Finding a Reliable Broker:

• Ask for recommendations from friends and family

• Contact mortgage broker associations

• Check with your current bank

• Read online reviews and testimonials

• Your Home Loan 🏠 (we'd be silly if we didn't mention ourselves here).

Questions to Ask Your Broker (us)

During your meeting, ask these important questions:

• Which lenders do you work with?

• How are you paid for your services?

• Why are you recommending this particular loan?

• What are the total fees involved?

• Can you explain all loan features?

• What's the comparison rate?

• Can you show me lower-cost options?

• How can I avoid mortgage insurance?

Getting Written Documentation

Always insist on a written quote that includes:

• Loan type and amount

• Loan term

• Current interest rate

• All applicable fees

• Comparison rate

If Problems Arise

Follow these steps if issues occur:

1. Discuss concerns directly with your broker (We hope it never goes past this step)

2. Submit a formal written complaint to their business

3. Contact the Australian Financial Complaints Authority if needed

Making Your Decision

Remember:

• Never feel pressured to sign immediately

• Take time to review all documents

• Don't sign blank forms

• Compare multiple loan options

• Get everything in writing

Choose a broker who explains things clearly, offers multiple options, and makes you feel comfortable asking questions. A good broker should be focused on finding the right loan for your circumstances, not just closing a deal.

A good broker like… Your Home Loan 🏠