What is a Mortgage Broker?
Did you know there are three very common questions asked about Mortgage Brokers? We answer these questions below and hope to aleviate any nervousness you might have about using a Mortgage Broker.
What is a Mortgage Broker?
A Broker is a person that liaises between clients and money lenders. In the case of Mortgage Brokers, we liaise between our clients who are looking for finance to purchase a house, and banks who lend money to home buyers.
The job of a Mortgage Broker is to do all the research and legwork for you. That means looking at the client's financial position and finding products that best suit their needs. This includes (but isnt limited to) looking at the competitive interest rates, the most suitable product specifications and repayment options.
Even though 5 Star Finance Brokers are Mortgage Specialists, we are also able to help negotiate terms for personal loans, asset finance, commercial loans and can assist with refinancing.
How does a Mortgage Broker get paid?
Mortgage Brokers are paid a commission. This commission is paid by the lender who ultimately provided the best Home Loan package for that client. Commissions are not paid by clients.
As part of the Mortgage Brokers Industry Code of Conduct, clients will always receive a "Credit Proposal Disclosure" which outlines the rate at which the preferred lender will pay commission to the broker. This is to fully inform the client of commissions paid and assure clients that products recommended are based on satisfying the client's needs and not because of commission rates.
Purchasing a house can often be a stressful process for buyers. Mortgage Brokers can help aleviate that stress by doing all the hard work for you. Often when sticking with "your bank", clients are often limited to a specific lenders home loan. Why stay with the same bank if moving means you can save thousands?
We take into account your financial situation and sift through over 100 Home Loan products with multiple lenders to find you the funding best suited to your needs. The final choice is made by you, but you can be sure you have seen the most appropriate products available in the market and can make an informed choice based on what you want!
Mortgage Brokers are also often in a position to negotiate competitive interest rates than what your bank may advertise. With over 30 years experience in the financial services industry, 5 Star Finance have premium broker status with many lenders, which means we can also provide quicker turn around times.
All of this, plus personalised customer service, no waiting in queues and the assurance that you are getting the most suitable deal means using a Mortgage Broker takes the stress out of purchasing a home.
Why should I use a Mortgage Broker?