AUSTRALIA’S BEST
Mortgage
B ro k e r s UNCOVERED: AUSTRALIA’S BEST MORTGAGE BROKERS
TIPS FOR CHOOSING A WHAT YOU NEED MORTGAGE BROKER TO ASK YOUR MORTGAGE BROKER
CONTENTS 05
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Michelle Ivanov: Above And Beyond
Australia’s Best Mortgage Brokers
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16
Questions To Ask When Choosing A Mortgage Broker
Thinking Of Refinancing?
WHY
E USE A SMART PEOPL KER RO B E AG MORTG
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Why Smart People Use A Mortgage Broker
How To Spot A Top Mortgage Broker
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EDITOR IN CHIEF Welcome to the inaugural issue of Australia’s Best Mortgage Brokers magazine. 2020 has brought with it a renewed importance on business and financial security from the smallest sole trader to publicly owned companies. The Mortgage Brokers featured in this issue have been hand picked by our team and asked all the hard-hitting questions and about what makes them the cream of the crop. If you have never used a mortgage broker or are wondering if you should get in touch with your old broker, you must read Questions To Ask When Choosing A mortgage broker on page 15 where we explain why it is so important to go with a broker who understands you and your financial situation.
Jo Wilson
With all big purchases it ultimately comes down to the bottomline, but the question is, can you afford not to have one of Australia’s Best Mortgage Brokers in your corner when looking to take out a mortgage? Our article on page 21, Why Smart People Use A Mortgage Broker, explains how and why a mortgage broker is such a good decision and what you should expect from them.
If you are ready to take the next step and are looking for a good mortgage broker, this is the place for you. We have the questions to ask and some of Australia’s best ready to help you make the right decision.
Jo 4
A U S T R A L I A S B E S T. C O M . A U
NICOLE CANNON: MICHELLE IVANOV:
ABOVE AND BEYOND
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S
tarting out in car finance twentysix years ago and growing up in a family who owned a prime mover business set the pace for Michelle Ivanov’s career as a finance broker. “Any time I get an opportunity to test drive a fast new ride or talk about a turbo, it excites me. My clients know that and I still do an awful lot of car shopping with them!” Michelle’s personality is just one of the assets that have earned her a reputation of being an expert in her field. A face to face meeting will prove that this broker is far more than just her job title. You will feel a strong and trustworthy ally beside you on your finance journey. “I think that my personality is my point of difference. It genuinely really enjoy being engaged in a conversation with any group, client or business person to do my job well.” Specialising in complex residential and asset with a high level of selfemployed and equipment-based businesses Michelle makes it a priority to understand exactly what her client needs for their specific situation. “Understanding what they require and what their long term goals are, is an important step. I don’t charge fees, so I work for many months at no cost to the client, but seeing their photos of their dream home being built, or watching them buy their dream home after saving for so long is what it’s all about,” Michelle says. Of course, there are pros and cons to every aspect of getting a home loan. 6
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Good brokers know they need to stay up to date with constantly changing products and policies. “Brokers have such a large range of lenders, so we spend a lot of time being educated and doing professional training so we know what is going to be the right fit for our clients,” she says. It’s sometimes difficult for clients to get the loan they need for their particular
“Fast isn’t good, and good isn’t fast!” situation with their existing bank. We have been so conditioned to focus on the “Best Rate”, when the rate doesn’t explain half of the features of a loan. With so many brokers around these days, Michelle says it’s important when choosing the one that’s right for you, to interview several first. “Find out their personality, their business and their lending background. Not everyone is going to be right for you. Customers are the priority, and our role has gotten really tough in terms of the information we have to be across these days. Fast isn’t good, and good isn’t fast!” She says. “My mentor said to me twenty years ago - ‘Always trust your instinct. A busy broker that is hard to get a hold of, is
the one that fights for you behind the scenes.” “I discuss with my clients what they want now, what they want in ten years and what they want when they retire. Some clients see success as one home, paid off and no mortgage. Some want thirty investment properties and a Ferrari. It’s all about their satisfaction and making sure that the realistic targets are set.” Michelle commences with a detailed discussion about your position and details, and what you wish to achieve. The brokers will then prepare options across the panel that fit your exact situation, and confirm the products and policies. the next step prepares ranges of quotes, which are then presented to the client with lenders, rates, features, repayments and timeframes based on the lenders that are suitable and tailored to your preferences. Getting in touch with Michelle is easy. “I use social media and have built a group of clients on there. Supra Finance also has Facebook Groups, Instagram Pages and we do a lot of Whatsapp group chats. My mobile is stuck to me 20 hours a day.”
0401 027 474 suprafinance.com.au @SupraFinance @Suprafinanceandproperty
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Michelle Ivanov
AUSTRALIA’S BEST
Mortgage
Director of Lending and Wealth Creation, Michelle Ivanov is the founder and director of Supra Finance. Known for her personal strength and personality, this has become a strength of her business. Diversifying the business to provide services for residential and all other facets of lending to be the All in One for her clients has been the right move to position Supra Finance as a customer service solution. “I believe it works for my clients. I think they want a direct approach without the pretty edges. So, if they can’t do what they need to do, I tell them straight up. I’d rather a quick ‘no’ than a slow drawn out answer for my clients.”
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Patrick Cranshaw
Patrick is a husband, father, grandfather, businessman, entrepreneur, investor, and CEO of NBHL. Patrick is one of Australia’s leading mortgage brokers helping his clients succeed for over 2 decades. And to date, Patrick has helped hundreds of clients and along the way written over $500 Million in Home and Investment property loans. Patrick works with all types of people and businesses and has an active learning outlook with an interest in business development, marketing, sales, human behavior, and entrepreneurial psychology.
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Bachara started in the broking industry in October 2012 after spending several years working for banks and credit unions prior. I began my my career as a ‘mobile broker’ before joining the team at Aussie Prospect in 2013. I spent several years learning the industry and the ropes and crafting my skills. I learnt a lot and really focused on developing a process that stood out to other brokers. In 2015 I was awarded the Loan Writer of the Year Award for South Australia and in 2018 I bought into the Aussie Prospect Franchise. I am privileged to be a cofranchiseel of Aussie’s Number 1 Store in Australia and the business has held that title for the past 4 years. I help educate my clients and structure every loan to suit their individual wants and needs. From selecting which products best suits their overall needs through to everyday banking.
Bechara Bouchos
Nicole Cannon
Nicole Cannon has been a Finance and Mortgage Broker since 2002 and has been the owner of Pink Finance since 2009. In 2019, Pink Finance won the Australian Broker Award for Social and Community Service Program of the Year and is one Australia’s most recognised brokerages for Ethics, Social Responsibility and Community Engagement having been a consistent finalist and winner of these National awards since 2011.
Arvin’s clients are seeking lower interest rates. It is one of the benefits of having him as your broker, however, Arvin’s service goes far beyond lower interest rates. He truly is an expert in mortgages and has 95% application success rate. His loan strategy approach to clients is a long term and holistic approach when putting the initial strategy together. Think of him as your personal credit manager to the banks as his number one commitment is to have ongoing relationship with his clients. Arvin makes himself available to provide guidance and advice throughout the entire process. And, with a goal to make a difference in peoples’ life through his interactions with them, Arvin stands out as the mortgage broker with heart.
Arvin Atmadja
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Questions To Ask When Choosing a Mortgage Broker M
ortgage brokers work on your behalf by negotiating for the best mortgage deals on the market and guiding you throughout the entire loan application process. Their goal is to help you get your loan application approved by the bank or lender that suits your needs most. 12
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Before you commit to a loan and a mortgage broker, do your research and ask all the necessary questions to come up with an informed decision. Here are some questions you should ask a mortgage broker.
WHAT ARE YOUR CREDENTIALS? In Australia, a financial professional must have a Certificate IV in Finance and Mortgage Broking to operate as a mortgage broker. He/she is also required to have his/her own Australian Credit License (ACL) or work as a credit representative under another entity’s ACL. You can also ask the broker if he/she is a member of the Mortgage Finance Association of Australia (MFAA) or the Finance Brokers Association of Australia.
HOW ARE YOU PAID FOR YOUR SERVICES? Mortgage brokers usually won’t charge you for their services and usually earn via commission they receive from the lender you choose to go with. Before committing to a mortgage broker’s services, ask how they are paid, if they will require additional costs along the way and if they require brokerage fees.
WHAT TYPE OF LOAN IS BEST FOR ME AND WHY? There are many types of loans (e.g. fixed-rate, split-interest rate, variable, etc.) and different kinds of features (e.g. offset account, redraw facility, etc.) offered in the market. A good mortgage broker will gather as much information about you as possible so he/she can assess the best type of loan and the right features suited for your needs.
HOW MUCH CAN I BORROW? A broker will help you determine your borrowing capacity by factoring in your living situation, family income, living expenses, credit history and debts. This information will also help the broker A U S T R A L I A S B E S T. C O M . A U
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point you to the direction of lenders that are more likely to approve your loan application.
HOW MUCH IS THE DOWN PAYMENT? A down payment of 20% is usually required for a loan but this can change depending on your situation. Ask your broker for all possible options that can work to your advantage.
WHAT IS THE INTEREST RATE AND ANNUAL PERCENTAGE RATE? Understand the loan’s interest rate and annual percentage rate before committing to the loan. For adjustable mortgages, ask your mortgage broker about the adjustment frequency, maximum annual adjustment, index, margin and highest rate. Also, ask your broker if you should get a loan rate lock. Aside from the interest rate, are there other fees that I should know about?
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This determines the true cost of your loan. Ask your broker for all the costs of the loan. This includes processing fees, appraisal fees, handling fees, credit reports, title policy, escrow, etc.
IS THERE A PREPAYMENT PENALTY? Ask your broker about the prepayment terms of the loan. Prepayment penalties give the lender the ability to collect an additional six months of interest if you settle your loan at an earlier date.
HOW LONG IS THE PROCESSING TIME? It usually takes around 43 days for a loan application to be processed. Good brokers can facilitate and speed up the turnaround time of your loan application. Ask your broker about the lender’s turnaround time and all possible obstacles, especially if you need to include a closing date to make a purchase contract. You can also ask your broker if he/she can guarantee ontime closings.
PINK FINANCE IS YOUR HOME LOAN AND BUSINESS FINANCING SPECIALIST, BRINGING YOU CLOSER TO ACHIEVING YOUR GOALS. We’re here to work on YOUR dream, not the lender’s Whether you’re considering buying your first home, expanding your investment portfolio, securing your future freedom through an SMSF loan, or getting you into your next car, you’ll want to know two things: • What your borrowing power is, and • Which is the loan for your specific needs (without having to run around to hundreds of banks to find this out!) That’s where we step in We listen to your circumstances and loan needs, and then we do the legwork. With over 50 lenders to choose from, we research, negotiate and present to you your loan options. We do the running, you score the loan.
CONTACT NICOLE NOW pinkfinance.com.au
Thinking Of Refinancing?
HOW A MORTGAGE BROKER CAN HELP
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inally settling on a mortgage with a competitive interest rate isn’t always the end of the number crunch. In today’s fluctuating mortgage market, the great bargain you have now may not be quite as good for your situation a few economic fluctuations down the line. This is why at some point, some people decide to update their loan by refinancing with a new lender. Whether you choose to refinance or not, as well as deciding on a new lender to go with, you will need to nail your research. This is where mortgage brokers step in to look for the best deals in the market and manage the application process on your behalf. Here are some reasons why you should use mortgage brokers when refinancing your loan. 16
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THEIR SERVICES ARE FREE Mortgage brokers don’t charge borrowers. Instead, they receive a commission from the lender you decide to go with. Mortgage brokers are also not in any lender’s payroll. Thus, they can give you objective recommendations. Because of this, more people have warmed up to the idea of approaching mortgage brokers for assistance with their loans.
THEY ARE EXPERTS IN THE FIELD There is a lot of information needed to determine if refinancing your loan is the best way to go, which lender to go with, as well as the best product and type for your situation. After choosing a lender, you will have to go through a ton
of paperwork and possible obstacles. An overlooked detail may result in you spending more than you intended on refinancing. Take advantage of their expertise. They will ensure that the new loan will save you more money in the long run. They can direct you to lenders that will most likely approve your refinance application, help you with legwork and paperwork, answer your questions and guide you throughout the application process.
THEY CAN HELP YOU COMPARE A VARIETY OF LENDERS AND PRODUCTS While a bank manager will most likely tell you about their product, mortgage brokers will guide you through a range of banks and non-bank lenders until you zero in on one that suits your needs and situation best. You can even take
advantage of the fact some mortgage brokers have access to deals that are off-the-market. The wide range of lenders and loan products provided by brokers is especially useful for non-traditional borrowers or those with complicated situations such as those with bad credit or self-employed borrowers. A broker can assess your situation and show you all the borrowing options available to you.
THEY CAN SPEED UP THE REFINANCE APPLICATION PROCESS Applying for a refinance requires a lot of deliberation, assessment of your finances, data gathering and document preparation. Mortgage brokers can whittle down your refinance application time by doing the legwork and paperwork for you. They can also
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deal with any problems that may occur during the application process. A good mortgage broker will have established relationships with lenders. This is a perk that can help speed up the turnaround time of your refinance application by a few days than if you applied by yourself.
THERE ARE MORE CHANCES OF YOU GETTING THE LOAN Going through the whole application process only to be denied can be discouraging. The advantage of having an expert by your side is that he/she is well adept in responding to changes and challenges in providing the lender
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requirements. Furthermore, mortgage brokers are equipped to deal with rejections of a refinance application and have better chances at turning around the decision to your favour.
THEY CAN HELP NONTRADITIONAL BORROWERS Mortgage brokers know how to deal with non-traditional borrowers and borrowers with unusual cases. Their insight into the market and your situation will help them find you options and alternatives to increase the chances of getting your refinance application approved.
The universe of mortgage lending has gotten to the point where there is a place in it for everybody. - Joe Mays
Prospect
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HOPYLE USE A W T PE
SMAR R E K O R B E G A G T R O M
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ou zeroed in on your dream home and you’re ready to apply for a loan. The challenge now is to choose between a loan from a vast variety of banks and lenders offering numerous deals, features and incentives. This is where a mortgage broker can help you. A mortgage broker is a licensed financial professional who looks for mortgage lenders with competitive interest rates and applies for loans on your behalf. Here are a few reasons why using a mortgage broker is a smart move.
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THEIR SERVICES ARE FREE Unless you live in the U.S. or in Britain, mortgage brokers’ services are often given for free. They earn by receiving commission from the lender you decide to go with. The only time that brokers will charge you is if your application is unusually complex or if you’re borrowing a small amount.
THEY ARE NOT AFFILIATED WITH SPECIFIC LENDERS OR PRODUCTS Mortgage brokers don’t market specific lenders or products. Their task is to map out your individual needs then match these needs with banks or lenders that can provide you with the best solutions.
THEY WILL HELP YOU COMPARE DIFFERENT BANKS AND LENDERS The mortgage market is very competitive. To stand out, lenders offer deals and incentives to entice us to their product. In addition, loans come in different types (e.g. fixed-rate, splitinterest rate, variable, etc.) and features (e.g. offset account, redraw facility, etc.). While a bank manager will tell you about their bank’s offer, a mortgage broker will help you compare a number of banks and lenders so you can find one that best suits your needs.
THEY CLARIFY THE CONFUSION A knowledgeable intermediary can help clear up any questions and confusion during the buying process. Mortgage brokers can answer your questions on technicalities, jargon, processes and 22
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paperwork and break it down into terms you can understand.
THEY SAVE YOU TIME AND EFFORT BY SPEEDING UP THE APPLICATION PROCESS Mortgage brokers not only help narrow down your options of lenders; they also speed up the loan application process. Applying for a loan involves a lot of legwork and paperwork, as well as dealings with conveyancers and/or real estate agents if it is a home loan. A mortgage broker can help you maneuver through this process and make things smoother and easier. In addition, good brokers usually enjoy good relationships with lenders. This can help make the turnaround time 2-3 days faster than if you go to the bank directly.
THEY SAVE YOU MONEY Mortgage-brokers can help you settle on the most cost-effective solution. They can look past the headline interest rate and compute the true cost of the loan sans all fees and charges and inform you of any potential additional charges. Some mortgage brokers even have access to special deals from lenders, which you can also take advantage of.
THEY HAVE SPECIALISATIONS Mortgage brokers deal with general and special situations, such as; • Property investing • Commercial properties • Construction loans • Unusual employment situations • Bad credit Loans • Non-resident loansNon-traditional properties
YOU GET THE MOST OUT OF YOUR MORTGAGE Mortgage brokers can explain to you the details and features of your loan and give you tips on how you can maximize your loan for your situation. They can show you how to get the most of your mortgage and make it work for you into your future.
THEY INCREASE YOUR CHANCE OF APPROVAL Mortgage brokers review your budget, objectives, credit history and situation so that they can direct you to lenders that will most likely approve your application in the first place.
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Best Mortgage Broker In Brisbane
Buying a home is a big deal. Looking for the best Mortgage Broker in Brisbane? Improve your chances of getting your home loan approved with this award-winning team of mortgage brokers in Brisbane. North Brisbane Home Loans is one of the most highly rated and recommended mortgage brokers for home loans and investment property loans.
Contact us now 07 3889 9719
northbrisbanehomeloans.com.au
North Brisbane Home Loans Offices. First Mezzanine Level, Aspley Hypermarket, 59 Albany Creek Road, Aspley, QLD 4034.
HOW TO SPOT A TOP MORTGAGE BROKER
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ortgage Brokerage is one of the fastest-growing careers right now. There is plenty of competition out there and it’s easy to feel overwhelmed trying to spot the cream of the crop. While there is no doubt using a mortgage broker has its advantages, the hard part can be finding a good one. We’ve outlined a few things you can look out for to make sure you end up with someone on your team who is going to get you the very best mortgage product.
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WORD OF MOUTH The number one way to be sure you get a great result with a broker is to seek advice from friends and family who’ve used brokers before and research their recommendations.
HIT THEM WITH THE HEAVY QUESTIONS Once you have a shortlist, meet them to discuss your situation. Asking a few hard-hitting questions will provide you with an indication of their personality and professionalism such as ‘How will you determine which loan is best suited to my situation?’ ‘How long have you been in the mortgage broking industry?’ ‘Are there any key challenges with your lending requirements and, if so, how they suggest you manage them.’
LOOK FOR CLEAR COMMUNICATION! Even two people who speak the same language can have miscommunications. This may be truer when you broker mortgages for a living. There is a lot of industry jargon that you need to forget about when you’re speaking to a client. It can be a source of miscommunication for some of our clients if you use them too much. Ideally, your broker should make you feel comfortable, and provide information about your options in a completely understandable way for you to make a fully informed decision. You should also ask yourself whether you feel comfortable with them.
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THEY ARE CLIENT-CENTRIC
THEY ARE FULLY ACCREDITED
A good broker will ask you questions about your goals and needs and then work with you to formulate a plan of attack. Good brokers will make sure they understand your current and future financial goals. Using this information, your broker can provide clear options that will help you reach these goals. Your broker will continue to follow up after your loan settles to conduct a financial ‘health check’ each year on your loan.
Check their accreditations and qualifications and ensure that the broker holds an Australian credit licence or credit representative status, and is a member of the Mortgage Finance Association of Australia who complies with its code of practice. Today’s broker must have an Australian Credit Licence (ACL) or a Credit Representative Licence (CR). Belonging to an industry body is not a legal requirement, but says more about the broker’s professionalism.
THEY ARE CLEAR ABOUT FEES
Check their credit guide. This document discloses the brokers’ range of services, their background, what their internal and external dispute resolution processes are, what industry associations they are members. It also outlines which lenders they work with, and their commission structures.
Brokers services are normally free to consumers, so your broker should disclose if they intend to charge a fee before you engage them. Different credit providers pay different commission levels. This can potentially influence what loans the broker recommends to you. Sometimes a broker will charge you a fee directly instead of, or in addition to, the credit provider’s commission.
THEY HAVE PLENTY OF OPTIONS FOR YOU Look at how many lenders, and which ones, are on the broker’s panel. It is important for your chosen mortgage broker to have access to all of the main lending institutions, including the big four banks, second-tier lenders and credit unions. The more robust your mortgage broker’s lender panel is, the more options you will have and the more likely you will be to find the right loan for your needs.
THEY ARE A KNOWLEDGE HOG The business of mortgage brokering is about keeping abreast with the latest developments in the industry. Knowledge is, after all, the ultimate leverage in negotiating. At the end of the day, it’s what’s going to help you give the best solutions to your clients. Top brokers are, therefore, the hungriest for knowledge. They seek the freshest and most relevant information.
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