Lending Matters
WHAT DO MORTGAGE BROKERS DO? Research shows that home loans sourced through mortgage brokers are now greater than 50 per cent. As the market becomes increasingly complex, one in two consumers now use mortgage brokers. And this number is increasing but many consumers do not fully understand the services a mortgage broker provides. Here’s what they do: Consumers that want home loans mostly choose between a broker or their bank. Brokers offer choices across a large range of lenders, often from a panel in excess 35 bank and non-bank lenders. Brokers work with their clients to assess borrowing needs and capacity, selecting a loan through the use of sophisticated software that suits the borrower’s aims and objectives and manage the process through to settlement. Brokers work for their client, NOT the bank, and enable consumers to consider a far broader range of options and choices. Brokers normally meet customers face-to-face to discuss and understand a client’s requirements and explain options and choices. Most brokers are mobile and will meet at a time and place convenient for the customer. This is often a client’s home. Weekends and evenings included. Brokers speak in plain language, explain the process and help clients compare apples with apples. • • • • • •
RICHARD WEST Top Ten Home Loans
Understand options and choices Use information to act now or plan for the future Save time Save money Free service Peace of Mind
Brokers act as a personal adviser, intermediary, counselor and coach throughout the loan application process. They will act as project manager until settlement. After settlement the broker continues supporting their client’s needs, assisting whenever they want to make loan amendments, switch products or purchase another property. Most finance brokers don’t charge a fee for their service since lenders pay them commissions for the loans successfully completed. Brokers use software that must be continually updated with changes to lender products, conditions, rates, fees and special offers etc. Some products seem to offer a great deal but they could have penalties, fees and charges not obviously apparent. Or, they may not have the flexibility required in the future. A mortgage broker helps customers choose the right loan and avoid taking a product that they might regret later. Market information, choices and options can offer peace of mind. Often busy work and family schedules don’t allow consumers the time for complex research or lengthy trips to bank offices. A broker saves customers time, money, legwork and stress. Industry oversight organisations such as the Mortgage and Finance Association of Australia (MFAA) require that brokers holding MFAA membership adhere to a code of conduct and receive mandatory ongoing annual training to stay updated with industry developments. This particular organisation also requires that the finance broker be diploma qualified as a credit adviser. Sleep well.
ABOUT THE AUTHOR Richard West is the owner of Top Ten Home Loans, mortgage brokers on the Sunshine Coast. He has over 25 years’ experience in the domestic and international banking and finance industry. Richard is a graduate of the University of the Sunshine Coast and holds a Diploma in finance/mortgage broking management.
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M: 0402 845285 T: 07 5446 1499 F: 07 5471 6744 W: www.toptenhomeloans.com.au A: PO Box 358, Coolum Beach 4573 Aussie Sunshine Finance Pty Ltd ABN: 62 725113 713 Richard West, Top Ten Home Loans (Credit Representative No. 403266) is authorised under Australian Credit Licence Number 389328.
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