Australia’s homeownership rates averaged 63% in 2020. While purchasing a home is one of the most exciting and meaningful events in one’s life, it is important that you ensure that you have all your i’s dotted and t’s crossed before making such a crucial financial decision.
Additionally, there can be a lot of pressure when purchasing a home because you’re probably going to need a mortgage loan. All this can feel overwhelming, but it doesn’t have to be.
When you take the time to do your research and connect with an experienced mortgage broker Australia, you can make the process a lot easier for yourself. Here are some tips that will provide you with a little bit of guidance when searching for a mortgage broker.
- Ensure They Are Licensed Mortgage Brokers
When looking for a mortgage broker, be sure that they are licensed because it means they have the necessary training to represent you.
This is important because only qualified brokers can work with lenders, ensuring that you get the best deal possible on your loan. Also, many unlicensed brokers will charge you a fee for their services, which can end up costing you more.
- Understand Their Background
When working with someone to secure your mortgage loan, you must understand who they are.
Ask the broker where they went to school and their credentials, including whether or not they hold any professional designations. Look for a broker who has plenty of experience in the field and is professional and is knowledgeable.
- Ask About Their Track Record
Before you sign any mortgage broker service contracts, you must look into the track record of the mortgage broker you’re considering hiring. You’ll want to know how many loans they’ve helped secure and if they can provide you with references for past clients who were happy with the services they received.
- Get Recommendations From People You Trust
There are nearly 8.3 million houses in Australia, and over 34% of these houses are purchased with a mortgage. When searching for a mortgage broker, you’ll want to get recommendations from people you trust.
Ask your friends and family members if they know anyone who had used a broker before and whether or not they were satisfied with the service. If you know of anyone who has recently purchased a home, you may ask them as well.
- Find Out What Types of Loans They Work With
Not every mortgage broker will work with each type of loan available on the market, so be sure to find out what types of loans they offer.
For example, there are plenty of different types of mortgages out there, including traditional loans and interest-only loans. The mortgage broker should tell you what they specialise in to choose the right option for your needs.
- Find Out If They Have a Guarantee
If you’re looking for a top-quality mortgage broker in Perth or Brisbane, you should find out if they offer a guarantee on their services.
While most brokers are diligent about providing excellent service, you never know when something unexpected may happen. If your broker does not offer any guarantees, it’s probably best to look for someone else.
- Find Out About Their Fee Structure
Finally, you’ll want to ask the mortgage broker you’re considering hiring how much they will charge for completing your loan application. You’ll want to find out what the fee covers as well, including whether or not it includes things such as credit checks and reports.
It’s essential that you clearly understand their fee structure and the services included in it before making any financial commitments.
Wrapping Up
Although you will want to ask many questions when searching for a mortgage broker in Australia, these seven tips should give you an excellent place to start. With the correct information and preparation, finding a great broker should be much less stressful than it would be otherwise.