Ready to purchase a new home? Before you go shopping for your dream home, perhaps you should consider working with a professional mortgage broker first. If you are new to the process of home purchasing, you might not even be familiar with the role of a mortgage broker. More importantly, how can you find the best mortgage broker in Sydney?
In this article, we will go over the basics of working with a mortgage broker. But aside from that, we will also cover the crucial steps that all home buyers should take to find the best mortgage broker. If you are curious to find out more, then read on.
Why do you need a mortgage broker?
Mortgage brokers provide advice and direction to home buyers. Whether it is your first time to buy a home or you are purchasing another property as an investment, you can always use the expertise of a mortgage broker in Sydney to point you to the right mortgage deals. More than that, they can also do the groundwork, so you don’t have to.
Cut yourself some slack.
Instead of having to pour hours on end looking for the best deals, they instead tap into their lending partners for a deal that will best suit your needs. Moreover, mortgage brokers specialise in handling all the paperwork needed to apply for the mortgage deal that you want. In many cases, mortgage brokers will be able to cut down your stress levels significantly and save you some time too.
Maximise your finances.
Mortgage brokers are especially good at assessing the mortgage market. They will sit down with you to accurately estimate how much you can afford and match your finances to a deal that you can comfortably sign up for. You can spend so much more on the wrong deal when you work without their valuable industry know-how.
Choose from the best options.
The best brokers will be wise enough to steer you away from deals that you are not likely to get. You have to be especially careful on that part since rejected applications can negatively affect future applications. They can determine which loans will be favourable for you and advise you on how to increase your chances.
Purchase with more security.
If further down the line you realise that the mortgage you signed up for no longer works for you, then you can always bring up that complaint and have it straightened out with your broker. Going solo might not allow for such security.
So, now that you know the benefits of working with a mortgage broker, how can you find the best one? Here are some steps you can follow.
Step 1: Identify your needs.
You won’t find what you are looking for if you don’t even know what you need in the first place. Before you set out to hire a mortgage broker, you need to first identify what you want from a mortgage broker.
How much can you shell out for a down payment? What kind of repayment scheme do you prefer? Would you prefer someone who is an expert at finding the best deals in the suburbs? Will they be able to work with your current financial situation? These are just some things you should consider.
Step 2: Make sure they are accredited brokers.
Before you even consider working with a potential broker, make sure they are licensed to provide loan advice to property buyers like you. Some things you should look out for include the following:
- National Consumer Protection Act accreditation
- Certificate IV and Diploma in Financial Services
- Mortgage & Finance Association of Australia (MFAA) membership or Finance Brokers Association of Australia (FBAA) membership
- Australian Financial Complaints Authority (AFCA) membership
You may use online hubs like the Australian Securities and Investment Commission Connect to search for licensed mortgage brokers in Sydney and anywhere else in the country.
Step 3: Consider the many types of mortgage brokers.
There are many types of brokers. For example, some brokers who provide their services strictly online, while others provide mixed online and offline services. Some whole-of-market brokers can assess every mortgage available in the market regardless of affiliation.
Whole-of-market brokers might be suitable for you if you really wish to maximise your property investments. Some mortgage advisers and brokers recommend mortgages offered by their limited number of lending partners, while banks might direct you to their own product range.
Step 4: Know their service features and fees.
Some other factors that you should definitely not sidestep are their service fees and features. Are their services within reach 24 hours a day, 7 days a week? Can you only reach them during the agreed-upon business hours?
Are their services limited to giving advice and pointing you to the right lenders? Or do they go above and beyond and handle everything from paperwork to the final touches too? Ask them about their complete service packages to get the best idea of what they can do for you. But never forget to bring up the topic of their service fee or commission rates.
Working with professional mortgage brokers is always a great investment. But just like a proper investment, you have to be smart and strategic on how you go about it.
Step 5: Find out which lenders they work with.
Another thing you should check is their list of lending partners. They do not have to work with 200 or more lenders to be considered good. They just have to be in partnership with a handful of lenders who offer highly diversified mortgage loan deals to give their clients enough freedom to choose. In some cases, they might even be able to arrange a deal for you outside of their panel of lenders.
Step 6: Learn insights from former clients.
If you really want to know whether the mortgage broker that you are eyeing is a good one or not, you can always ask the people who have previously worked with them. Granted this might take a lot more digging around than usual, the feedback you find will definitely be very helpful in solidifying your choice.
Now that you have an idea on how to start with your search for the best mortgage broker in Sydney, we hope that your home purchasing experience will be a smooth and stress-free one.
Need more help?
If you have got more burning questions regarding mortgage broking, then feel free to contact the experts over at Key Strategy Solutions. We house a team of experienced mortgage brokers in Sydney who are ready to provide excellent services at your beck and call.
Learn more about how we can help you today.