Public awareness of the services mortgage brokers provide has grown enormously over the past five to ten years. Engaging a mortgage broker in Melbourne is one of those rare situations in which there is a substantial benefit to all the parties involved; you have all the lenders sifted through and paperwork completed for you (usually at no cost); the bank gains a customer and the mortgage broker gets a commission for their work.
However, this win-win-win situation is very much contingent on choosing the ‘right’ mortgage broker to sit in the middle of the deal? How do you know which mortgage broker will be right for you? We explore the ‘qualification process’ for a mortgage broker to help sort the wheat from the chaff.
- Check their industry accreditation
All good brokers will be registered with the MFAA (Mortgage and Finance Association of Australia). Choosing an MFAA member means that your broker will adhere to a voluntary code of conduct, and you’ll have easy access to an ombudsman and arbitration in the case of a dispute. - Their decision-making criteria
Anybody can compare a range of different interest rates – that takes no special skill! Mortgage brokers should offer a much more personalised and detailed method of selection for your home loan. - Look at their education and experience
You may be able to discern this from their website or by sighting their certificates in the office. Don’t be shy to ask your potential broker what education or experience they have in finance, though. - Ask what their fees are
Many mortgage brokers will work for you, completely free. Others may require a fee on some loans and not on others. Some mortgage brokers require a fee from all of their customers. Clarify what’s needed at the beginning. - Number of lenders
Check how many lenders your mortgage broker has access to. The more lenders they have arrangements with, the better chance you have to find the right home loan. - Extra services
You’ll find that many of the best mortgage brokers will offer services in addition to simply finding a loan and filling out paperwork. Look out for brokers that can provide valuation reports or offer debt reduction and loan repayment advice, for example. - Check their privacy policy
Your mortgage broker should have a privacy policy for you to sign, which sets out how your private details are handled. Read through it and check that the terms suit you.
Once you’ve qualified your mortgage broker, make sure that you get a range of options from them for your home loan. Asking for a choice in the loan that you take out helps to ensure that you aren’t being taken in a potentially less-than-ideal direction without any control.
Mortgage brokers in Australia are reliably neutral, timely, and very professional. There is little reason not to use one … at least, not to use the right one!
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