Top 5 Questions To Ask A Mortgage Broker

26.06.23 | Michael Brown | News

For people looking to buy a home, mortgage brokers provide a valuable service. A broker can be helpful whether you’re just beginning your road towards home ownership or looking to upgrade or add to your investment portfolio.

Throughout Sydney and New South Wales, there are hundreds of mortgage brokers in business. They are not all the same, even though they are all supposed to adhere to the same laws and norms. So, if you’re testing out various brokers, here are some questions to ask.

Don’t just focus on a broker’s responses to these queries. Find a broker who suits you by considering their general approach, thoughtfulness, and interest in your specific situation.

What does a mortgage broker actually do?

A mortgage broker acts as a middleman or woman between borrowers and lenders. Financial institutions such as banks, credit unions, and other non-bank lenders are considered lenders. A broker can provide you more options than a single lender because they typically have information about many dozens of lenders.

There are literally hundreds of various types of home loans available in Australia thanks to the over 100 authorised lenders here. Some loans aren’t even made public, but a broker may have access to it.

To locate the best loan, mortgage brokers can assist in sorting through this.

What documents do I need to apply for a mortgage?

Ask your broker what paperwork you need before you begin an application.

Depending on the lender and your particular circumstances, different documentation can be needed.

Some brokers are able to offer a straightforward paperwork checklist. Ahead of time, gather the relevant documents to prevent last-minute file searching.
Once you have all the required information, a reputable mortgage broker will make copies and work with you to complete the loan application. No alarms. No surprises.

How do brokers decide which loans are best for me?

There isn’t a single loan that works for everyone who applies for a mortgage.

You might be looking for a loan that allow offset payments, redraws and extra payments. Alternatively, you can be searching for the most affordable basic loan. You might also desire two linked credit cards and enough frequent flight miles to spend a week in Fiji. Nice.

There can be benefits, savings, or risks associated with distinct loan kinds. Tell a broker what your top priorities are and find out what types of loans might work best. Brokers should be willing to explain various loans and products, and also explain why they have excluded alternative lenders from consideration.

Keep in mind that, in contrast to banks and other private lenders, brokers are required by law to act in your best interests when they suggest loans. You’re allowed to put them to the test on this. Ask them why they haven’t included the loan with lowest interest rate; there’s probably a valid reason.

How much expertise do your brokers have?

With our decades of experience, Mortgage Broker Sydney can easily highlight experience as a selling feature. Although the market welcomes fantastic new brokers on a regular basis, not all brokers are created equal.

Instead of lavish advertising and marketing budgets, we mostly rely on word of mouth and reputation. We genuinely care about our customers’ happiness and satisfaction. If you value this kind of relationship, search for brokers with experience.

How much can I borrow based on my income?

The Big Question. Your salary, family size, location, current debts, loan type, and lender all affect how much money you can borrow. But you shouldn’t always do something simply because you can.

Our customers are occasionally surprised by the size of the loan they are eligible for. It’s not always a good idea to borrow the total amount that a bank will lend you. Your ability to repay your loan will be impacted by your spending habits, holidays, educational goals, and family plans.

We try our best to watch the market and prevent our clients from overcommitting because mortgage stress is no fun for anyone.

Find out how much you can borrow from a mortgage broker depending on your income, and then enquire as to any further factors. A good broker will happily assess your situation and help you responsibly increase your borrowing capability.

Talk to us

Mortgage Broker Sydney does not charge customers any upfront fees. Through commissions from lenders, we make money. We demand that banks and lenders showcase their best offerings since we must (and want to) act in the best interests of our clients. Although you may incur fees and costs from the lender when you obtain a loan, we do not charge you for our service.

Contact us at Mortgage Broker Sydney if you need help finding the right loan for your situation.