Mortgage brokers are qualified finance industry professionals. They work with you to determine your borrowing needs and objectives, and to help you determine how much you can borrow. Brokers help to ensure that you don’t take out a loan that is not right for you.
Like your solicitor, accountant or financial planner, we are specialists in what we do and will provide you with a suitable finance solution to help you achieve your goals. With a mortgage broker, you can expect a more personalised level of service than you would usually receive directly from a lender. Additionally, our brokers have access to finance products from a wide variety of lenders. This means your broker can compare lending products from different lenders to find a loan that’s just right for you.
Mortgage brokers get paid at the settlement of a loan. The good news is it’s free for the client! The bank pays the mortgage broker in the background in the same way that they would pay their local branch staff in the background. The client isn’t expected to pay the branch clerk when they go and see them, just like we don’t expect them to pay us directly. So what that means is that we as your mortgage brokers don’t get paid unless we get you a home loan that’s approved.
Sure thing! We are mobile brokers so we can come to you.
Absolutely not. First of all, there is very little difference between the commissions paid by the various lenders. There is also legislation in our industry called the National Consumer Credit Protection Act (or NCCP), that is designed to protect consumers and ensure ethical and professional standards in the finance industry. We tell you upfront what commission we will be getting from the lender. Our job, our only job, is to find a competitive loan for your needs and objectives.
Lenders will only sell you their own products. Each bank (or lender) has a variety of loan products on offer – low doc, package loans, loans with re-draw facilities, plant and equipment loans, fixed rate loans, interest only, interested in advance, variable, introductory variable… and so on. The issue you face as a consumer is ‘which loan is right for me?’ And that is where your mortgage broker becomes an invaluable resource! If you go direct to the bank, you will only be offered the loan options available through that one lender. As your mortgage broker, we do all the leg work to find the right loan for your needs. We are across many lenders and all of their loan products, and our sole purpose is to find a suitable loan to match your personal financial circumstances and goals.
A fixed rate mortgage means that you’ve essentially locked in an interest rate for either a two, three, five year fixed period, whichever you’ve chosen. While you’re on that fixed rate mortgage, your loan repayment will not change. So the biggest benefit of that is knowing what your monthly mortgage repayment will be. You don’t have to worry about interest rates rising. You’ve got one set mortgage repayment.
A variable rate mortgage means that your mortgage repayment can fluctuate as the lender changes its rates. If the interest rates go up, then your mortgage repayment will go up and if it goes down, your mortgage repayment will go down. The biggest benefit of a variable rate mortgage is flexibility. You can pay as much and as often as you like off of your variable rate mortgage.
An offset account is just like a savings account, which is essentially joined to the loan. Any money that you have sitting in your offset account will offset the interest payable against the loan. Over time it will reduce the amount of interest that you pay and reduce the term of the loan.
A redraw facility is similar to an offset account, except it’s within the home loan and environment. Any extra money that you pay, via cash surplus, or salary deposits, or rental income, all sits within that redraw environment within the loan. Again, having this extra cash will reduce the interest payable against the loan and reduce the loan term in total.
Lenders Mortgage Insurance (LMI) is a one-off, non-refundable, non-transferrable premium that’s added to your home loan. It’s calculated based on the size of your deposit and how much you borrow. The more you contribute to the purchase price of your property, the lower the cost will be. LMI protects the bank against any loss they may incur if you are unable to repay your loan.