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IDENTIFYING A GOOD MORTGAGE BROKER

IDENTIFYING A GOOD MORTGAGE BROKER

The profession of mortgage brokering has been around for over twenty years and as expected over the years it has undergone series of changes. While there are some factors that contribute to the shaping and re-shaping of the profession, the core objective of mortgage brokers has remain the same.

The main thing they provide to home loan borrowers is choice. Going through the numerous home loans on offer out there can prove too cumbersome a task for home loan borrowers and selecting the right choice is usually not easy without the help of the brokers.

The highest professional body in Australia for Home Loan Brokers is known as the MFAA and they estimate that there are about 12,000 independent brokers in the country.

The aim of this post is to help you identify the right broker for you of the thousands that are out there.  

  1. Licensed; every home loan broker should be licensed by ASIC. Since all licensed brokers are expected to operate under certain rules you are assured to get quality and ethical service from such broker. Every licensed broker is expected to adhere to NCCP (National Credit Consumer Protection) Act.
  2. Belong to a professional body; members of professional bodies such as the MFAA and the FBAA are expected to possess a certain level of educational qualification and conduct their practices under strict ethical codes. This means that a show of license guarantees good quality service under the laws of the states.
  3. Comes recommended; you should be sure to have spoken to at least one person who has done business with broker before and be sure he/she recommends that you employ their services too. Be sure to ask him/her questions that the broker may be diplomatic in answering when asked about it. Knowing that someone else likes their services would give you a bit of confidence in trying them out.
  4. Excellent communicator; a good broker should be able to communicate properly with the loan borrowers and should be able to explain what is happening at every stage of the process involved in getting the loan. The entire process can be stressful no doubt, but the ability of a broker to keep the borrower in the loop in an efficient manner all through shows diligence which sets him apart from a larger group of brokers. Some may even go ahead to keep in touch with the borrower and update him on relevant news even after completion of the loan process.
  5. Discloses all costs; it used to be the norm that the services rendered by brokers to borrowers are paid for by the commission received from the lender (meaning that borrowers are serviced free of charge) after loan is placed but times are changing. In order to maintain trust and avoid arguments at later stages it is very paramount that the broker discloses all charges or fees associated with the lender at the initial stages of meeting.

As you have seen there are so many home loan brokers in Australia and only few possess the traits required to qualify as a good broker in Australia and some of these few are at Opulent Finance. We have qualified Home Loan Brokers in Burwood, Mt. Waverly and Melbourne.

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