Why use a Mortgage Broker?

There is quite an array of mortgage products on the market with almost as many lenders. It is often a time consuming and difficult task tracking down the right loan.

The best way to side-step all the confusion is to use a qualified mortgage broker.

Mortgage brokers do more than push paper for your loan with a lender. A skilled broker will guide you through the different lenders various lending criteria ensuring your current financial circumstances and future goals are met. It's not as simple as approaching a lender and asking for a loan. Each lender has their own set of criteria and target different customers. As a borrower you may not fit one lenders guidelines but find that you exceed another's.

A broker should present to you at least a few choices of how to finance your loan and also communicate with you regularly in relation to the progress of your loan in a timely fashion.

A few things to keep in mind when selecting a broker are:

• Are they members of an industry association such as the Mortgage & Finance Asscociation of Australia MFAA or the Finance Brokers Association of Australia FBAA?   Why?, because members of these industry associations must adhere to a Code of Practice and commit to an ongoing professional development progamme which keeps them up to date on mortgage issues.
  
  Your YMO broker is an Accredited Mortgage Consultant (AMC) with the MFAA and a member of the Credit Ombudsman Service Limited.



• What qualifications does the broker have?   Ask your broker what industry qualifactions he or she has.
  
  Your YMO broker is an Accredited Mortgage Consultant with the MFAA with appropriate qualifications.
  
  
• Who pays them?   Check to see how the broker is paid. Residential brokers are remunerated by the lender by way of commission on loans that settle. These commissions are not tacked on to the price of your loan. In almost all cases you pay the same for your loan through a broker as you do direct from the lender. Sometimes it is cheaper to go through a broker who refunds part of their commission.
  
  Your Mortgage Options does not charge fees. In some cases we are able to partially rebate commissions, so you will be better off than going direct to the lender.
  
  
• How many lenders are available to choose from through the broker?   Many of the better mortgage brokers offer more than 100 loan products from more than 20 lenders.
  
  We have access to over 30 lenders and access to more than 400 loan products giving you a wide choice.
  
  
• Does the broker have professional indemnity insurance?   PI insurance covers brokers in the event of legal action being taken against them. It is a requirement of the MFAA that their members have appropriate insurance cover in place.
  
  
Yes, we have professional indemnity insurance.


• Is the broker a member of a dispute resolution process?   This means that there is a third party which can assist in the resolution of any potential dispute between broker and borrower if required.
  
  Yes, we are members of Credit Ombudsman Service Limited COSL

Back to Top