- Well trained and experienced in lending
- Do not charge consumers for their services
- They are members of professional bodies that provide ongoing training, support and development
- They are registered with ASIC and are subject to strict operating rules
- They can access a range of lenders that can meet a consumers’ needs in an unbiased and transparent way
Why should you use a mortgage broker?
Mortgage brokers are professionals at what they do. They are required to hold a minimum of Certificate IV in Finance and Mortgage Broking as well as undertaking a minimum of 25 hours in continuing professional development each year, as well as having their client files spot checked by external auditors each year.
They must also be a member of at least one professional industry body such as the Finance and Mortgage Brokers Association of Australia (FBAA) or the Mortgage and Finance Association of Australia (MFAA). Many brokers also hold a Diploma in Finance and Mortgage Broking Management and are also members of the Financial Services Institute of Australia (FINSIA).
Unlike the banker at your local branch or call centre, a broker has access to many lenders and they do not have cross sell targets like bankers. When you talk to a broker you can be confident that he or she is interested in only one thing – making sure that you get the deal that is right for you.
The right deal may not always be the cheapest, the product that the broker presents to you may have certain features or benefits that make it more suited to your financial needs. In saying that the broker must always present you with three different options fairly compared side by side so you know the full picture, and at the end of the day the loan that you get is the one that you select.
In what other industry can you find an individual, or group that has this level of skill and training that is there, waiting to guide you through what will possibly be the largest purchase of your lifetime, and all of that provided at no cost to you? Not only are they trained to find the best deal for you, not only can they search out that deal from virtually 100’s of options, they don’t ask you to give them a dollar. So, I hear you ask, how do they get paid?
Well, for years banks have been reducing staff numbers, and saving millions, if not billions of dollars. So now even the lenders themselves find it better to pay a broker for a deal handed to them on a platter, and only paid for when a deal is written, than to incur the cost of having a staff member sitting in their branch costing them money weather they write a loan of not. Brokers are paid on results, not for warming a seat.
So, you don’t pay your broker, the banks do.
How good is that? The broker does the work, the broker uses their years of training to help you get the best deal that they can, and the lenders pays for it all.
In Australia as the lenders have reduced their staff numbers more and more people have been looking for an alternative. Well, here it is, your local broker. They are experienced, well trained, and closely supervised. Last year brokers wrote about 54% of all home loans in Australia.
If you’re looking for a home loan ask yourself if you want the best deal, where is the best place to get it from? We have no doubt that you will join the ever growing line of borrowers going to talk to their local broker.
Contact us today to discuss your home loan to make sure you take advantage of these record low interest rates.
About the writer: David Traynor has been in the finance industry since 1982, is a member FBAA and MFAA, plus the Commercial Asset Finance Brokers Association (CAFBA), David holds a Diploma in Finance and Mortgage Broking Management and has been awarded as a Fellow of Finance by FINSIA.
David established Regional Finance Solutions in 2013 when he became aware of the banks continued removal of traditional bank branch based lenders. Regional Finance Solutions currently has 16 brokers spread across the North Coast, New England and North West. Banking roles for David have been extensive and have included roles in branches through to executive management roles.