Three things to look for in a mortgage broker

If you’re looking for, or are in the process of buying a home, chances are you are trying to find a mortgage broker to help you secure a loan.

The mortgage broker’s role is to determine your financial circumstances and then match you with a lender.

If you’re new to home ownership or it’s been a while since you last required the services of a mortgage broker, deciding whose services to use can feel overwhelming.

Here are three things you should look for.

1. License and membership

First and foremost you want to make sure that the mortgage broker you choose is licensed with the Australian Securities and Investment Commission (ASIC).

Search the ASIC Connect’s Professional Registers  to check that your mortgage broker is registered or phone 1300 300 630.

Secondly, it’s a good idea to make sure they are members of an industry association like the Mortgage & Finance Association of Australia and Finance Brokers Association of Australia. While it is not a legal requirement for brokers to belong to an industry association, members of these organisations must comply with strict codes of conduct and educational standards.

2. Full disclosure

A good mortgage broker will disclose all fees and costs upfront and be entirely transparent about how they earn their commission – from the lender or directly from you. Before agreeing to use their services, make sure you feel confident you are across all expenses and that they have been clearly explained to you to avoid any surprises along the way.

You should also make sure you feel confident that your broker is independent and will explore options from multiple lenders. Interest rates are low right now, so you should be confident your broker will find you a competitive home loan solution.

3. Excellent communication skills

The home buying process is complicated, with so many factors to consider, documents to sign and little room for error, it is imperative your mortgage broker is an excellent communicator who will keep your informed every step along the way.

Ask yourself;

• Do they answer your questions in a clear and concise way?
• Do you trust their expertise?
• Do they ask you enough questions?
• Do you feel they have a good grasp of your financial goals and situation?

Having a good rapport and solid communication with your broker can make a world of difference when navigating and securing a loan for your dream home.