fbpx
1300 416 700
Explainer Videos

What Does A Mortgage Broker Do?

What Does A Mortgage Broker Do?

What Does A Mortgage Broker Do?

Mortgage brokers are home loan and mortgage advisors that help borrowers find the right finance option to purchase or refinance a property. They usually act as a bridge between a customer and a bank when applying for a home loan.

Here’s a look into what a mortgage broker does for borrowers:

  • Compares suitable home loan options. Mortgage brokers work by understanding a client’s financial situation first. They then help them find the most competitive and appropriate financing option to meet their property goals. From there, they can help borrowers find and compare suitable home loan products from available lenders.
  • Guides customers throughout the home loan application process. Mortgage brokers provide support to customers throughout the mortgage application process, managing it for the customers from submission until settlement, and even beyond. Mortgage brokers require you to complete a client brief and provide a range of supporting documents which then gives them a comprehensive understanding of your situation and can then discuss with you the most suitable loan products.
  • Help borrowers understand complex financial agreements and terms. It can be challenging to read through financial jargon by yourself. Mortgage brokers can help with their market knowledge and expertise. They can explain home loan terms, requirements, and other financial agreements to borrowers, so that borrowers fully understand everything they need to know about their chosen home loan option.
  • They work with banks and only earn commissions when their customers reach a settlement on their home loan. Brokers work with banks, and only get paid commissions from the bank when a home loan settles, which means their services are free to borrowers. If a customer refinances their mortgage within the first 2 years, brokers incur a clawback fee.

If you’re still hesitant to get a mortgage broker working for you, it’s worth noting that data shows the broker market share hit a record high, which points to the rising need for home loan guidance and consumer confidence in brokers.

The majority of survey respondents also feel that working with brokers made the process faster when dealing with financial institutions as compared to going directly to lenders, as the broker handles most of the back-and-forth with the financial institution.

Furthermore, mortgage brokers have a legal obligation to put your interests first. This is known as the best interests duty (BID), and gives you the peace of mind your mortgage broker will always act in your best interests when recommending a home loan. BID doesn’t apply to lenders. That means if you approach a lender directly, they aren’t legally required to offer you a product that best matches your needs.

A trusted mortgage broker will put your best interests first. Through their years of experience and market expertise, they mortgage brokers are in the best position to explain to borrowers all the different loan products and features available to them. For customers, knowing exactly what they can expect from the loan agreement both in the short and long-term can help mitigate the risk involved, so they can move forward with their property goals in confidence.

It’s worth noting that brokers are generally paid the same from bank to bank, which means borrowers need not worry which bank your broker suggests to go with. You can trust that your broker will suggest the best home loan option that fits your circumstances.
Mortgage brokers walk you through the home loan process from start to finish. They provide the best deal for you, instructing not only what you can borrow but how much you should borrow too.

 

 

The first step to working with a Broker is to request a call. We will go over your best home loan options with you.

Request a call below:
Step 1 of 3

Learning

Related Articles

Explainer Videos

What Does A Mortgage Broker Do?

26 Oct 2022
Explainer Videos

What You Need to Know About Lenders Mortgage Insurance (LMI)

26 Oct 2022
Explainer Videos

Bridging Loans Explained

26 Oct 2022
Explainer Videos

How to Use Equity to Buy An Investment Property

26 Oct 2022
Explainer Videos

Guarantor Loans Explained

26 Oct 2022
Explainer Videos

Offset Accounts and Redraw Facilities Explained

26 Oct 2022
Explainer Videos

The Loan Process

21 Oct 2022
Explainer Videos

Structure Your Loan

9 Aug 2022
Explainer Videos

One Stop Shop – Shore Financial

9 Jul 2022
Explainer Videos

How We Support Our Real Estate Partners

9 Jun 2022
Explainer Videos

How We Assist Our Clients

9 May 2022
Explainer Videos

Why You Should Use a Mortgage Broker

9 Apr 2022
Explainer Videos

The Culture at Shore Financial

9 Feb 2022