What Does a Mortgage Broker Do?

A mortgage broker acts as the middleman between you and potential lenders. Their job is to compare mortgage options, find interest rates that fit your needs, and negotiate terms. Think of them as your guide through the loan process.

A mortgage broker helps you apply for the loan and handles most of the work, whether you’re buying a home or refinancing a mortgage. They gather all the necessary paperwork, including bank statements, credit reports, and employment history. They also identify potential issues with different lenders.

A good mortgage broker will:

• Understand your goals and needs
• Determine how much you can afford to borrow
• Find the best loan options for your financial situation
• Explain how each loan works, including features, interest rates, and fees
• Apply for the loan and manage the process until settlement

Is It Good to Use a Mortgage Broker?

Buying a home or refinancing can be challenging. A licensed mortgage broker can make the process easier and offers several benefits:

Market Expertise

Mortgage brokers are experts in the home buying and refinancing process. They have a deep understanding of the housing and lending markets, which helps them find the best loan for your unique situation.

Access to Lower Rates

Mortgage brokers have access to more lender panels, which can save you money over the life of the loan. This is especially helpful for borrowers with limited financial means or credit issues, as brokers can find affordable mortgage options.

Does It Cost to Use a Mortgage Broker?

Using a mortgage broker is free for you. They are typically paid a commission by the mortgage provider. This commission usually ranges from 0.5% to 1.2% of the total mortgage amount, depending on the type and term of the loan. Mortgage brokers operate independently and must be licensed, ensuring they work in your best interest.

When Should You See a Mortgage Broker?

Whether you’re a first home buyer or a seasoned property investor, a mortgage broker can save you time and effort.

• First Home Buyers: Brokers handle all the paperwork and help you apply for government incentives like the First Home Owner Grant.
• Refinancing: Brokers can advise you on switching loans and make the process easy.
• Property Investors: Brokers help maximize returns with the right loan.

Mortgage brokers can assist with these and more. Anytime is a good time to benefit from a broker’s experience.

Advantages of Using a Mortgage Broker

Access to Many Lenders

A mortgage broker gives you access to a wide range of lenders and their products, increasing your chances of finding the best loan for your needs.

Convenience

Your mortgage broker can meet you at your home or office and handle most of the paperwork, saving you time and hassle.

Managing Your Application

Your mortgage broker will follow up with lenders and settlement agents to ensure financing happens on time.

Government Incentives

Your broker can advise you on how to get stamp duty relief or first home buyer grants you may be eligible for.

Types of Home Loans Available

Mortgage brokers can offer loans from all major banks, building societies, and other lenders, giving you access to over 1,000 products from more than 30 lenders.

Do Home Loans Cost More Through a Mortgage Broker?

No, the costs are the same. Whether a bank pays a mortgage broker or an employee, there is always a cost associated with selling a home loan.

Do You Have to Pay a Mortgage Broker?

No, mortgage brokers are paid a commission by the lender that provides your home loan.

Do You Need to See the Lender if You Use a Mortgage Broker?

No, your mortgage broker handles all interactions with the lender.

What Documents Do You Need for a Home Loan?

• Proof of income (payslips or financials if self-employed)
• Group Certificate or Tax Returns
• Bank statement showing your deposit
• Signed offer of acceptance
• Credit card statement showing your credit limit
• 100 points of ID (passport or birth certificate and driver’s license)

Different lenders have different requirements, and your broker will advise you based on the lender best suited to your needs.