When I first began in Mortgage Broking, over 17 years ago, only 10% of the market used mortgage brokers. The question was – “why would you use a one?” It was as if the reason to use a mortgage broker was because there was something “wrong with your credit”.
Today 60% of the market uses mortgage brokers and the question has changed – “why wouldn’t you use a broker?”
It’s primarily about trust.
A client of mine said to me when we first met; “I don’t trust my bank – but at least I know that … The problem with a broker though is how to know which one you can trust”.
A broker is paid by a lender – so how can you trust their intentions … well a bank employee is ALSO paid by the lender and HAS to tell you what their employer TELLS them to say. A bank employee may well provide you with a legal duty of care BUT – an employee’s PRIMARY responsibility is to their employer. As a Mortgage Broker in Brisbane the thing I find most perplexing is that almost half the market STILL walks into their bank and takes what they are given often without question or options. How do you know for instance that a bank will give you the best home loan rate or the best home loan for you – and not for their own bottom line?
Here are some proven tips to find a trusted mortgage broker – if a mortgage broker ticks all these boxes they are the one for you ·
- Are they PAID THE SAME no matter which lender they recommend?
- Do they ask you for your personal circumstances before making lender suggestions?
- Do they explain the reasons behind their recommendations – including the impact that mortgage insurance may have on the choice?
- Are they a member of the leading professional body: the MFAA – to be a member a broker now MUST hold a Diploma in Financial Services?
- Do they work for a reputable brand – avoid one-man bands?
- Do they have experience?
- Do they have a website – does this web site have regularly updated information and useful tools such as a mortgage calculator?
- More particularly these days do they have a presence on other online sites? – facebook, linkedin, twitter, google places. You don’t want a broker stuck in the past.
- Do they have peer and industry recognition – you should be able to type their name and brand into Google – what has happened in the past should be there for you to see.
- Can they give you names of people who recommend them – better still does someone YOU TRUST recommend them?
Above all, what you want is someone who will find the best home loan for you.
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Alan Heath… Mortgage Broker Brisbane CBD