A mortgage broker is a home loan expert who can help you through the process of financing a new home, buying an investment property or refinancing an existing property. It doesn't matter if it's your first time buying a home or your 20th – they are always helpful to have in your corner.
 

Your mortgage broker will provide professional advice and match you with a loan which suits your needs and financial situation. A home loan is likely to be the most significant expense you will ever commit to, so it's great to receive professional advice before you dive into the market. 


 

A broker can guide you through all the different options to select a suitable home loan, saving you time, effort and best of all, money.
 

Here are three ways a mortgage broker can help you:


Assess your financial situation

 

A mortgage broker will help you work out your budget by discussing your needs and circumstances. They'll work to paint a detailed picture of your case and what you need from a home loan.

 

With the information that you have provided, they'll help to calculate your borrowing power, which is the amount of money that a lender will loan you. This is calculated using your income, tax, existing commitments, monthly spend and more.

 

Find a loan suitable for you

 

After assessing your objectives, financial position and borrowing power, your mortgage broker will search their database for the best options from banks, credit unions and other credit providers. They'll walk you through the application process, discuss loan options from a range of lenders, help you understand loan terms and above all, find you the right home loan.

 

You'll be able to compare your options side-by-side to find which home loan products work best for you. Your broker will be there to advise you of mortgage repayments as well as any upfront, ongoing or hidden fees. They will recommend the best product for your needs, but at the end of the day the final decision sits with you, so you can go with whoever you are most comfortable with.

 

Your mortgage broker should also provide you with a copy of the lender's comparison rate. A comparison rate calculates the average rate, including fees, over the life span of the loan, helping you identify the actual cost of a loan.

 

Manage the process

 

Once you've decided on a loan that works for you, your mortgage broker will complete all the legwork. This includes completing and submitting your home loan application and liaising with the lenders on your behalf until your home loan is settled. 

 

Mortgage broker FAQs

 
Is it better to get a mortgage from a bank or broker?
 

Australian mortgage brokers have a few key advantages, such as giving you access to a professional who has a comprehensive view of the market, offering you a variety of different products, charge no fees and help you understand the terms and conditions of the loan.

While it's generally believed that a mortgage broker is preferable to going directly to a bank, the advantage of a bank is that they might be able to package other products into your mortgage such as credit cards and savings accounts. However, you might have a harder time getting a loan from a bank, and they won't tell you if there's a better deal offered elsewhere.


How much does it cost to see a mortgage broker?
 

Most of the time, mortgage brokers are paid via commission from the lender. That means that as the customer, you don't owe them any money. Make sure that you ask your broker upfront if they will charge you a fee for their service, as there are plenty of brokers that do not.
 

While this might seem like a fantastic deal, it's important to note that because of this, it's crucial to find a good broker that you trust. Some mortgage brokers might choose the loan which gives them the most commission, not the one that is best for you. While this is rare, if you are not comfortable with the first broker you go to, you can change at any time. It would help if you did your own research before choosing which broker's service to go with.

To help come up with a shortlist, you can check your finance broker against the following terms on the Australian Securities and Investments Commission's (ASIC) website:

  • Credit Registered Person
  • Credit Representative
  • Credit Licensee
When should you talk to a mortgage broker?
 

You can go and see a mortgage broker no matter what stage you are at in your journey. They can help you early on by suggesting the ideal deposit based on the average price you're looking to spend, assist you with loan products when you have a deposit saved and even step in last minute if you've found the perfect property and are ready to buy. Mortgage broking will also help you understand the process to refinance, reinforcing that they're not just for first home buyers.
 

For First Home Buyers, you should visit a broker early on, as it's an excellent opportunity to get your head around the finances, which might be daunting for a lot of people. Not only that, but they understand the entire home buying process, including how long everything will take, what fees to expect, and what you need to organise.


 

What should you ask a mortgage broker?
 

As they're the home loan expert, it's a fantastic chance for you to ask as many questions as you can to help you understand the process. Here are a few questions that you might like to note down before meeting with your broker:

  • How many different lenders do you represent?
  • What information do I need to provide for my home loan application?
  • How much will I need to deposit to avoid lenders mortgage insurance?
  • Which type of loan best suits my needs?
  • How are you getting paid for the service you are providing me?
  • Does each lender offer you a different commission rate, or are they equal?
  • Do you have an Australian Credit Licence?
  • Are you a member of the MFAA (Mortgage Finance Association of Australia)

Questions you can ask about the specific loan:

  • What is the Interest Rate?
  • Can I fix my Interest Rate at a later stage?
  • What other financial services does this particular lender provide?
  • What fees are involved with me taking out this loan?
  • How long will it take for my loan to be approved?
  • What is a pre-approval process for this loan?
  • Are there any other features or benefits that I will receive with this loan?
  • Can you show me multiple options, including the loan with the lowest overall cost?
Does Metricon assist with finance? 
 

A mortgage broker can help you get into the real estate market and find your dream home. We have a variety of finance partners who can assist you in organising your finance. For a free, no-obligation chat, contact us.