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Top 3 reasons you need a mortgage broker


It seems that, for many Australians, their mortgage broker is their first port of call when they need to buy a home, whether for property investment or owner-occupancy. According to a survey by the Mortgage and Finance Association of Australia (MFAA), around half of all buyers arrange their home loans through a broker. If that wasn't enough, research commissioned by the MFAA this year found brokers accounted for 64.7 per cent of mortgage market growth in 2014. 

If you're not one of these Australians eagerly seeking out the services of a mortgage broker, you probably just need a little bit of convincing. Here are three good reasons to put a mortgage broker on speed dial. 

1. They're experienced and knowledgeable 

You might think of yourself as a something of a property or mortgage whiz, but brokers are professionals who live and breathe home loans. They can look past the obvious elements like interest rates, and consider which mortgage products offer the most flexibility and most effectively match a borrower's long-term plans and financial situation. 

As an industry minimum, mortgage brokers have to achieve a Certificate IV in Finance & Mortgage Broking. Furthermore, members of the MFAA are required to hold a Diploma in Finance & Mortgage Broking Management qualification. Mortgage brokers also have to obtain authorisation under the Australian Securities and Investments Commission (ASIC) through an Australian Credit Licence or Credit Representative status – so you know they're qualified.

2. They have connections

You've got friends and access to the internet, so surely you can do the legwork yourself, right? Nowadays, you can find information on just about anything through your computer screen or word of mouth. 

Most brokers make use of aggregators, or wholesalers for the finance industry, to gain access to a wide range of different products. Aggregators may also provide them with additional services, like loan comparison software, to make them more effective. Don't forget, too, that they are not only intimately familiar with the different lenders they deal with with, but have working relationships with them, allowing them to better negotiate. 

3. It may not cost you anything

First of all, it's important to note that different brokers have different fee structures, so it's hard to make a blanket statement about how much they cost. But if price is what's keeping you away from seeing a broker, it's worth checking what the cost might be first rather than writing it off straight away. 

Many brokers receive a fee or commission from the credit provider whose product they've sold to you, insulating you from any financial ramifications. Some brokers do charge the customer directly, but they are required to disclose these fees to you before providing any advice or assistance. 

So how about it? Are you feeling ready to visit a mortgage broker in the Whitsunday Shire?