We recently worked with a doctor who had been looking to take out a loan for her medical practice but had no idea what to look for in a broker. She had looked at dozens of brokers, but she just wasn’t sure what she needed. Eventually, it had gotten so confusing for them that they had just given up and gone through a bank instead.
Choosing the right broker for you when you are just starting out can be tricky. With thousands of different brokers to choose from, it’s hard to figure out what is reputable in a broker and what to look for. Here are 3 things to ask when choosing a mortgage broker.
- What experience do you have and are you licensed? It’s important to check a broker’s credentials and qualifications before using them. How long a broker has been in the industry is a good indication of their skill level and reliability but always ask for testimonials from past clients. The majority of Australia’s major lenders require brokers to hold at least a Certificate IV in Financial services, or an Australian credit license, or be authorised under a licensed loans lender. Look for lenders that are members of either the Finance Brokers of Australia (FBAA) or the Mortgage and Finance Association of Australia (MFAA).
- What range of lenders do you have access to? To get you the best loan, your broker should be able to offer you products from a wide variety of different lenders. Remember to ask how many lenders they have access to as well as a full list.
- How do you determine the best loan and lender for me? A broker’s primary job is to source the best loans for your needs as well as what loan structure makes the most sense for A good broker will assess your requirement and then present you with a variety of different options that suit your needs, all with the research and ratings to back up their selections. Some of the factors they should consider include where the lowest interest rates are, whether you would better suit a fixed or variable interest rate, or whether splitting the interest rate between the two is a better fit.
Choosing a mortgage broker for your company can be a daunting task, remember to ask questions and check the credentials of any perspective brokers.