The benefits of using an independent mortgage broker
When it comes to finding the best home loan to suit your individual needs and financial circumstances, you generally have two options. You can do all the research yourself or you can get professional help from an independent mortgage broker. Here we look at the reasons why it pays to consider getting help from an independent mortgage broker.
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Why use an independent mortgage broker?
Using an independent mortgage broker to help you find the best home loan for your personal situation will save you time and perhaps even money. Independent mortgage brokers can provide you with advice on home loan products from a wide range of home lenders. Independent mortgage brokers are not tied to any particular home loan provider. For the home buyer, this means that by using an independent mortgage broker, you will have the option to consider home loan products from the different providers.
How are independent mortgage brokers paid?
While some mortgage brokers may ask for a fee for the service they provide to you, most will be paid through a commission they receive on any home loan product they provide. This is usually a percentage of the amount of the home loan. Your mortgage broker should disclose the commissions they receive for any home loan that you consider. If they do not, simply ask them. The commission will normally be received by the mortgage broker upon settlement of the home loan.
If a mortgage broker charges an up front fee for any service they will provide to you, then perhaps you should shop around for another independent mortgage broker. In fact, in states including NSW, ACT, Victoria and WA, it is illegal for a mortgage broker to charge an upfront fee.
Finding an independent mortgage broker
Independent mortgage brokers can be found in most suburbs and regional areas. When searching for a mortgage broker, ask family, friends, colleagues and other professionals for any recommendations they may have. Before choosing a mortgage broker, check their website. Is it professional or is nothing more than a promotion or sales page? The website should include information about the range of home lenders the independent mortgage broker deals with.
You can find an independent mortgage broker in your area by visiting the Mortgage Industry Association of Australia website at www.miaa.com.au.
Alternatively, you can find one of our mortgage broker partners on our home loan resources page.
Online mortgage brokers
Online mortgage brokers offer the benefits of a professional independent mortgage broker with the convenience of the internet. Online mortgage brokers allow you to search for the right loan and you can even apply online.