How to Find the Best Mortgage Broker in Perth?
A mortgage is a crucial investment to make, and if you are to consider using a mortgage broker as most people do, you need to ensure to have the best. Mortgages are often complicated, and using an experienced broker with your best interests at heart for your mortgage processes can save you a great deal of time and money.
Expert mortgage brokers like Orange Mortgage & Finance Brokers understand that every mortgage situation is unique and complex in its way, and it is always prudent to be detail-oriented. It would be best to be wary of mortgage brokers who are not straightforward about any relevant details concerning your mortgage application. Below are five tips to guide you as you look for the best mortgage broker to help you navigate the property market in Perth.
Inquire About Mortgage Broker Fees and Commissions
A mortgage broker should be straightforward about their fees and commissions. You should consider it a red flag if your potential broker is dodgy and having a problem disclosing their compensation expectations. They should be honest about the commissions they expect from the lender. While a fee structure from your potential mortgage broker shouldn’t be a significant determining factor in your preference, it will help you gauge the overall process and understand the value you’re getting from them. The fees and commissions may also give you a hint if you’re getting risky borrowing suggestions. The bank mainly pays brokers after the loan deal is settled and is done on a commission basis. You can also check out how much does a financial advisor make.
Ask about the Lenders they Work with
Some brokers may work with only a limited scope of lenders, and this could be a disadvantage on your side as it will lock you out from other potentially good loan products. While brokers may not look into all lenders, it’s prudent to settle for those with a wide range of lender panels, also referred to as a whole-of-market broker. This will significantly increase your chances of getting the best-fit mortgage loan product compared to working with brokers who can only access a set of lenders.
Consider Referrals and Reviews
One of the best ways to get a good broker is through referrals, especially from people you know, like friends and family. A broker who has been vouched for by people who have previously worked with them is likely to be a good bet. Alternatively, you can look out for online reviews from a wider client base to get a broader and more accurate picture. Most brokers have an online presence where they look for potential clients. You can check out their business reviews from trusted third-party sites like Google or Yelp, and watch HD movies for free download.
Check for their Accreditation
It’s pertinent to check for your potential broker’s training and accreditation before engaging them. A qualified broker in Australia must have an Australian Credit Licence (ACL). This license is given by the Australian Securities and Investments Commission (ASIC) upon successful application. They are also required to join a recognized professional organization like the Mortgage and Finance Association of Australia (MFAA) or the Finance Brokers Association of Australia (FBAA) for mentorship purposes.
Assess their local Knowledge and Experience
A suitable mortgage broker should know the local property market inside and out. The property market is dynamic, and they should be abreast of industry trends at all times. A mortgage broker with a good grasp of the local market will be best placed to advise you accordingly and avoid issues like the last-minute cancellation of loans. They are also more likely to have valuable connections within the market, such as real estate agents and appraisers, who can ease the process.
Another important aspect is their experience dealing with borrowers in the same financial situation as you. For instance, if you’re a first-time borrower, you might want to ask how many of their previous clients were first-time borrowers. Some brokers may have extensive experience dealing with only a particular category of borrowers, such as investors or retirees.
While you might consider going directly to the bank for your mortgage, having a trusted mortgage broker handle the process on your behalf is far more beneficial and hassle-free. An experienced mortgage broker knows everything required for a loan, including all the paperwork and query-related information from the bank. It’s not surprising as they have done it on behalf of other clients repeatedly and successfully before. They will eliminate potential risks of costly mistakes and alleviate the stress associated with the process, more so if it is your first time buying a house.