A good mortgage broker will be available when you need them, save you thousands on a loans package, and align their work to your financial goals. Here’s how you can choose a mortgage broker that’s right for you.
A mortgage broker will help guide its clients through the process of selecting the best mortgage possible as well as a competitive loans package.
Due to this, clients who have a good mortgage broker can save thousands, meaning it is vital that a mortgagor chooses the right person.
In a discussion with Nest Egg, mortgage and finance specialist Bianca Patterson goes through some of her expert tips to help guide advisers into the perfect broker for them.
What makes a good mortgage broker?
A good broker understands the market, keeps on top of government regulations, can effectively communicate with clients and will be there for the long term.
“Each lender has their own policy on how they lend for investment and how they calculate an investor’s income and tax benefits, so working with the right broker will take the stress and uncertainty out of finding the right lender for the individual investor’s portfolio,” Ms Patterson said.
“The broker will be there for the long term, they will be helping investors make decisions today that will ideally make investing in the future easier as their portfolio grows and borrowing becomes more complex.”
A great broker will not be transactional or interest rate-focused. They should guide the investor to make lender choices based on policy and ability to make changes in the future rather than on the “best rate”, continued Ms Patterson.
What should investors consider before deciding on a broker?
According to Ms Patterson, it is important that investors consider the experience of the broker, how they align to the investor and whether they have similar ideologies.
“Investors should clarify that they have a similar ethos as the broker on key loan structuring points such as cross collateralisation, spreading lending risk amongst different lenders and attitude to risk and debt. The best broker/client relationship is built on trust and mutual respect,” said Ms Patterson.
What are the signs of a bad broker?
Ms Patterson has broken down the characteristics of a bad broker by the following attributes:
- Poor communication skills
- Hard to reach/lack of response
- Limited/infrequent updates
- Limited product knowledge
- Limited access to lenders on their panel
In most circumstances, it does not cost anything to change brokers and most initial conversations with brokers are obligation free.
Should my broker be available on weekends?
It all comes back to communication. If the broker is clear with the mortgagor, being available on weekends might not be important.
“While it is great for a broker to be available on weekends, I don’t think it is a necessity. Within my business I encourage my clients to come to me before they make an offer or attend an auction so we can check their equity position and borrowing capacity before the pressure is on them to make what is often an emotional decision on auction day,” Ms Patterson said.
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We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians
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