Whether you are a first home buyer, investor, upgrading to a bigger home or looking to use the equity in your property, choosing the right home loan is a vital decision that can make thousands of dollars difference to your net worth.
Just like any product, shopping around and comparing prices is the best way to ensure that you have the peace of mind to know that you have a good deal. Unfortunately many people do not shop around when choosing a home loan. Instead, they go to their bank or other main financial institution and take a ‘pot luck’ approach on getting the right deal.
However, consumers are getting smarter as more people are using professional mortgage brokers to help them shop for the right home loan. Over the last decade the number of home loans sourced through mortgage brokers grew from 25% to 42%. Putting your home loan to market to compare and contrast offers is an option well worth considering. The right mortgage can put you on the path to start building your wealth.
How do I choose the right mortgage broker?
Fortunately there is robust legislation that protects consumers in their dealings with mortgage brokers.
Mortgage Broker Checklist:
- What accreditations do they have? This means the ability to introduce you to lenders such as the major banks and other home loan providers.
- Does the mortgage broker belong to a reputable industry association such as the Mortgage and Finance Association of Australia (MFAA)?
- How many lenders does the broker have on their panel? Usually 20 to 30 lenders is standard.
- Has the broker disclosed all fees and commissions prior to signing up?
- Is the mortgage broker owned by a bank and have they disclosed this?
- Does the broker take the time to understand your situation?
- Does your mortgage broker work locally and are they easily accessible?
- How do they compare loans that fit your situation? Make sure the mortgage broker clearly explains their criteria.
- Does the mortgage broker charge a fee for their service?
- Is the mortgage broker able to provide customer testimonials?
This article has been supplied courtesy of Loan Market. Loan Market has helped more than 20,000 Australians in the last year achieve their dream of home ownership. Let a Loan Market broker help you find the right home loan today – simply contact a local Loan Market mortgage broker for a free appointment.