What does a mortgage broker do?

Mortgage brokers are professionals in the home loan industry. They work with you to determine your borrowing needs and how much you can borrow. Brokers help to ensure that you don’t take out a loan that is not right for you.

Professional mortgage brokers only focus on loans and on helping you to select and use the right financial products to grow your wealth. Like your solicitor, dentist or plumber, we are specialists in what we do and will provide you with the right solutions.

Brokers have access to a wide variety of loans. This means your broker can find a loan that’s just right for you.

Why should I use a mortgage broker if I can go with a bank?

Banks will only sell you their own products. When we talk about a ‘loan product’ as your mortgage broker, we are referring to the thousands of options that are currently available for you for your loan. Each bank (or lender) has loads of different loan options – low doc, package loans, re-draw facilities, plant and equipment loans, fixed, interest only, interested in advance, variable, introductory variable… the issues you face as a consumer is ‘which loan is right for me?’ And that is where a mortgage broker comes in. If you go direct to the bank, you will only be offered the loan options available through that one lender. As your mortgage broker, we do all the leg work for you. We are across many lenders and all of their loan products and our sole purpose is to find the right loan for your needs.

Do you Charge fees for home and investment loans?

Some mortgage brokers charge a fee and some don’t. When you take out a loan via a Mortgage Broker – it does not cost you more. That is an absolute myth. Brokers get paid commission by the bank for bringing new business to them, this does not impact your rate or level of service.

Some brokers charge a fee for their service. They must disclose this fee upfront to you so you know what you will be up for if you engage their services.

Don’t you just recommend the lender who pays you the most commission?

Absolutely not. First of all, there is very little difference between the commissions paid by the various lenders. There is also legislation in our industry, called the National Consumer Credit Protection Act (or NCCP), that is designed to protect consumers and ensure ethical and professional standards in the finance industry. We tell you upfront what commission we will be getting from the bank.

Isn’t it more expensive to use a Broker?

Brokers are on your team. In most circumstances, the products brokers can assist you with are the same or (in a number of situations) better than those you can obtain directly from the lender. If you do find that a lender is offering what you consider to be a better product, let us know and we will do what we can to negotiate with our panel of lenders on your behalf. We will never recommend a loan product that does not suit your specific needs.

How much can I borrow?

This is dependent on your individual circumstances, as well as each individual lender’s policy. There is no clear cut answer, however we are more than happy to help determine your borrowing capacity. Generally, we will need to know details on your income, expenses, savings (if applicable), credit history and any foreseeable changes to your future circumstances. The more accurate and detailed the information you give us, the more accurate and detailed our borrowing capacity estimate will be. We do all the hard work for you, so call us now to get the ball rolling!

Should I go fixed or variable?

A mortgage broker is only allowed to recommend a product based on what you say is most important to you – for example, “pay my loan off quickly” or “guaranteed repayments”. We do however, live by the following; “if you want flexibility take a variable rate loan, if you want budget certainty take a fixed rate loan, if you want both, then do both.”

I am not in your area, can we still work together?

In some circumstances, we can also connect with you remotely.

Which lenders do you deal with?

Some brokers are Credit Representatives, and some are fully licensed. We have taken the extra step to ensure we are fully licensed brokers, holding our own Australian Credit License (391312). This means we can access the lender panel of our aggregator, Connective, as well as holding direct accreditations with some lenders directly. This means we have access to over 35 different lenders on our panel – these include the major banks, second tier lenders, credit unions, private funders and a few “out of the box” solutions. Having our own credit license also means we are able to maintain a level of independence that not all brokers have – a strategic decision to ensure we do our best to do the right thing by you.

Who sets interest rates?

The Reserve Bank of Australia meet on the first Tuesday every month to determine the official cash rate for the country. The lenders then use this information, along with a number of factors, to set their own rates. Mortgage brokers do not set rates, but we will do our best to negotiate on your behalf where possible to reduce the rates you are charged.

What are the fees for a SMSF loan?

There is an upfront cost to set up the SMSF which varies between $1,000 and $3,000 depending on circumstances. The ongoing fees are between $1,000 and $2,500 depending on SMSF investments and complexity.

What sort of property should I purchase inside my SMSF?

The individual has full discretion as to which property they purchase. Ultimately the investment performance of the property should be the highest priority. There are specific guidelines on property types that SMSF cannot purchase. It is best to discuss this with an expert.