Mortgage Brokers are the biggest sellers of mortgage loans in Australia. Their presence in the market is an important part of ensuring borrowers are able to access a diverse loan market and find products best suited to their needs. Mortgage Brokers should be able to offer you independent, unbiased advice on the best loans available.
Q: What Does a Mortgage Broker Do?
A: A broker collects information about your needs, including the amount and purpose of the proposed loan and other relevant details. They then assess your criteria against a panel of bank and non-bank lenders, to find the loan product that is right for you. At all times, we keep your interests in mind, doing the rate and costs comparisons and making sure your paperwork is all in order before we even approach a lender.
Q: Do You Charge Fees For Home & Investment Loans?
A: Some brokers do (and must disclose their fees up-front), and some don't. One of the myths about brokers is that using a broker costs more. It does not. Brokers are paid a commission by the bank or lender to whom they direct the business. That commission is generally paid from the same source as that used by the bank to finance their own branches and sales staff. It does not affect the rate you pay or the level of service you receive.
Q: Don't You Just Choose The Lender Who Pays You the Most?
A: Absolutely NOT! There is legislation applicable to the industry, specifically to protect consumers from that sort of behaviour. It is known as the NCCP, or National Consumer Credit Protection Act. It sets out the ethical standards and guidelines to ensure brokerage professionals reveal all commissions and fees. Their only job is to bring you the best loan for your needs and servicing capacity. We are diligent in our observance of all appropriate consumer protections.
Q: How Much Can I Borrow?
A: That depends upon how much deposit money you have available and your current income and expenses position. It would probably be best if you give us a call and we can go into your options in more detail. Our contact details are at the bottom of the page.
Q: I'm Not In Your Area. Can You Still Help Me?
A: Certainly. We are mobile lenders, so we come to you. We are usually able to fit around your schedule and can take the time to discuss your needs in detail. Book an appointment and we will make every effort to arrange your loan with the minimum of disruption to your life and business.
Q: Which Lenders Do You Deal With?
A: We are Connective brokers, so we deal with approximately 50 lenders, including the major banks, second tier lenders and credit unions. We can secure you a loan from pretty much any lender you choose. This is what makes us a better lending advisory source than the individual lenders.
Q: Who Sets Interest Rates?
A: The Reserve Bank of Australia meets on the first Tuesday of each month to determine the official cash rate for the enrtire country. The cash rate is the rate charged between banks for overnight loans. Bank loan rates are made up of the cash rate plus a profit margin of approximately 2.0 to 2.5% p.a. Interest rates are set by lenders, based on those rates. Mortgage brokers have no control over the rates set, other than to look for the best rate available for a loan with your desired feature set.
Q: Why Use A Broker If I Can Go To A Bank?
A: When we talk about a "loan product" we are referring to one of the many thousands of loan options that are currently available to you. Each bank or lender has a broad offering of different loan options, They include Low Doc; Package Loans; Re-draw Facilities; Fixed Rate; Variable Rate; Interest Only; Interest In Advance; Introductory Variable... and so on. As brokers, our role is to help you negotiate this confusing forest of information. If you go direct to a bank they will only offer you the loans they have, so you miss out on more than 95% of the loan offers available.
Q: How Are Brokers Paid?
A: We are paid directly by the bank or lender, as part of their overhead cost of arranging the loan. It's the same source of funds they use themselves to pay for their own branches and lending staff. There may be circumstances in commercial loans where the borrower pays the broker directly, and even in the case of some mortgage loans. At all times, we meet our obligations in advising you of any commissions or payments we earn in relation to loans we broker for you. This disclosure is a legislative requirement.
Lifestyle Investment & Planning Solutions are happy to answer any questions you may have about any aspect of the process..