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Choosing the right mortgage broker – what you need to know

So, you’re ready to start your home buying journey – it’s been on your mind for a long while, and to get things started, you’re looking at some mortgage brokers to get the wheels in motion.

As with any service, you must do your due diligence before engaging a broker, and there are a few practical steps you can undertake before signing on the dotted line.

It’s vital to note that brokers all operate differently, with some placing more value on personalised service and others focused on securing solutions that offer them the most commission.

The broker landscape is littered with cowboys, and we’ve prepared a short article that can hopefully assist you in making the best choice when it comes to the biggest investment you’ll ever make.

Are they working in your best interests?

Always aim to select a broker that receives the same commission regardless of the product/lender they recommend to you. This is a critical factor in determining if the broker is recommending products best aligned to your financial situation and needs – not the one where they are likely to get the best possible commission.

A quality broker committed to professional standards will always be upfront about their remuneration and be very transparent about whether they will get referral fees for introducing you to the financial institution you go through.

One of the essential things we practice here at MAW Money, which should always raise red flags when you are doing your research, is whether your broker tries to encourage you to borrow more than you need or are comfortable with.

Your relationship with your broker should be collaborative and stress-free. If you feel uncomfortable or feel pressured, that is a sign to take your business elsewhere as it is a sign of what’s to come.

Do they demonstrate professional standards?

Ensure that any broker you talk to holds an Australian Credit License or Credit Representative status as required by the Australian Securities and Investment Commission (ASIC).  

At MAW Money, we have an Australian Credit License and operate our service within the standards outlined by ASIC and other professional bodies.

Do not engage a broker who does not have a Credit License!

Can your broker offer you clear choices?

After assessing your needs and looking at your financial position, your broker should be able to provide you with a detailed overview of banking products that suit your objectives.

The information they provide should detail each product’s loan types, interest rates, features, and fees and comment on its suitability for your scenario.

It’s also important they give you plenty of choices – and this could be in the form of bank and non-bank options. The statement of service should also include clear explanations of the loan application process and how it works – from initial inquiry through to settlement – as well as outline the level of involvement of your broker at each stage,

At MAW Money, we’re focused on personalised service, and throughout all stages of your mortgage journey, you’ll have one point of contact guiding you through it.

Our one-on-one approach means we take the time to understand you and your situation and present you with a customised range of products and options. We’re not like the larger institutions which usually offer cut-and-paste solutions.

Does the service come at no cost to you?

A mortgage broker should offer you a fully comprehensive service, and in many cases, it should be at no cost to you. The broker will usually get a commission/referral fee from the financial institution they recommend (and you proceed with), meaning their services are covered.

If your broker charges an upfront fee to engage them, always ask why. If they can’t explain it adequately, or you feel uncomfortable about it, it’s time to look elsewhere.

Always take the time to research whether you will be charged fees if you switch your loan product within specific timeframes.

At MAW Money, we do not charge any fees for our service. Instead, we offer a comprehensive inquiry to settlement offering at no cost to you, our client.

Our focus is on delivering exceptional service and connecting you with a mortgage product that works for you. We are then paid a commission/referral once you make your decision – we’re very clear about this from the outset, and we’re happy to explain this at any stage.

Importantly, you can do one other thing – look at social media and Google reviews. You can usually tell the ‘real deal’ reviews from the fakes. At MAW Money, we’ve got many happy clients, and they would be glad to share their experiences with you if needed.

So, if you’re ready to take the next step – get in touch, let’s have a chat, and see if we can help you get into your home (new, upsize, or investment) now. 

Ready to get started? Get in touch with our team today for an obligation-free chat on how you can secure your first home.

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Get started by getting in touch with us for an obligation-free discussion. We’ll learn all about your financial goals and tailor our approach to you.