With the many changes taking place within the lending sphere over the past year or two, it is now more important than ever to choose the right broker in order to achieve your desired goal.
Experience and Knowledge:
Experienced brokers have taken years building up knowledge of each lender's specific requirements and understand how to structure a loan application so that it is presented in the best possible light for approval.
Industry Qualifications and Memberships
A Certificate IV in Mortgage Broking is the industry minimum requirement of education for all brokers in Australia. To become a senior broker, brokers must attain a Diploma in Finance and Mortgage Broking Management.
Speak Your Language
Finance is full of industry jargon and terminology. Ensure you choose a broker who is able to speak to you plainly and helps educate you in what these phrases mean and how they affect you.
Referrals From Friends and Family
Nothing beats a referral from someone you trust. Ask around, and contact a few brokers. Ask a lot of questions, brokers expect that of you and are here to help.
The best way to know if you have found the right broker is to talk to them face to face and see if you believe they are working in your best interest. Carbon Finance brokers can either visit you in our offices or at your home or work for no charge. Why not give us a call? Dial 08 6444 6645 and speak to Julia.
At Carbon Finance, we do not charge any property mortgage clients an upfront brokerage fee – our sole mortgage transaction income is derived from the commissions paid by the lenders as outlined below. As Carbon Finance belongs to the multifaceted Carbon Business Group, we are able to absorb our advisory expenses without the need to charge large upfront fees to compensate. Our mortgage advisors are highly qualified and knowledgeable; don’t pay unnecessary fees, call Carbon Finance for all your mortgage solutions on 08 6444 6645
The cost to you to use a mortgage broker will largely depend on which mortgage broker you choose to do business with. In Australia, all mortgage brokers are paid a commission by the lenders to act as the intermediary between you and the lender and to facilitate the financial transaction through to settlement. The commissions paid by each lender varies, however these variations tend to me minor. If the loan does not settle, then there is no remuneration paid. There are also instances where a mortgage broker will not be paid anything at all – for instance, where the mortgage is of such a low amount that the lender does not consider it sufficient enough to pay for or where you are simply negotiating a lower interest rate or swapping to another type of loan. In most cases, mortgage brokers also have to pay back some or all of the commissions forwarded if the loan is subsequently paid out within a certain amount of time – usually 12 – 18 months, although the timeframe can be longer.
Due to the large responsibility placed on a mortgage broker with regards to regulatory compliance and the fact that a large portion of the work that a mortgage broker performs does not attract a commission, many mortgage brokers have chosen to charge an actual mortgage broking fee to the client to assist with their finance requirements, much like a financial planner would charge an upfront fee. Any fees charged by a mortgage broker must be fully disclosed via a credit quote to you before you engage their services and you must sign to accept that you are willing to pay these fees.
There are several pertinent questions you should always ask your mortgage broker before you engage them to act on your behalf:
- How much experience do you have? Within the industry, brokers with less than 2 years experience are not considered fully qualified independent brokers.
- How many lenders do you have on your panel? You want to ensure that your broker has access to a large number of lenders – 25+ is a good figure.
- How do you get paid? Find out whether or not the broker charges a brokerage fee on top of the commission they will be paid by the lender.
- Are you available outside of normal business hours? At times, you will need to speak to your broker at evenings and weekends, especially if you are wanting to buy a house. It’s best to check how flexible your broker will be to speak to you at these times.
- Do you offer a mobile service? With such busy lives, it is not always possible to meet with a broker in their office. Find out if your broker can come to you rather than you going to them.
At Carbon Finance, we have experienced mobile mortgage brokers available at the times to suit your needs. Call us now to speak to one of our qualified people.
Over the years, I have often asked clients if they know what it is that a mortgage broker actually does. Usually, they nod in a vague way before admitting that they don’t really quite understand how it all works.
A mortgage broker acts as an advisor to you. Our job is to ascertain your lending requirements and source suitable options to meet your needs. The key word here is suitable. Mortgage brokers are governed by strict compliance rules and must not act to your detriment in order to make a financial gain. We have a pool of lenders that we are able to go to for your finance - once we have determined your needs and established which lenders will provide the best options for your unique circumstances, we act as a liaison between you and the bank until settlement of the loan.
By using a mortgage broker, you can be sure you will receive tailored advice and choices – something not found when you deal only with one bank. Call Carbon Finance now to ensure you are getting the best deal.