Using a mortgage broker

Mortgage brokers have operated in other parts of the world for years and are now carving a niche in Australia. They are professionals who negotiate on your behalf, explain the pros and cons of different loans and help guide you through the paperwork. They are usually paid commissions by lending institutions.

These days, brokers are appearing everywhere - including the internet. Some broking firms are owned by larger companies and some real estate agents even act as brokers. While no broker deals with every institution, much less every loan product, they should have a large stable of lenders from which to choose a product appropriate for you.

Before you decide to deal with a broker you must be confident that they will actually add value to the process. Ideally, a mortgage broker should work to get the best possible deal for you.
Consider:

• Is the broker truly independent or attached to an institution?

• How long has the broker been in business?

• Will the broker supply a list of lenders with whom they do business?

• Will the broker provide a written guarantee that you will receive the best possible rate on offer from the original list of lenders?

• Do lenders pay different commissions? (You want the best deal for you, not the best deal for the broker.)
  

Other information in this guide:

• Knowing what you can afford to borrow

• Understanding mortgage terms

• Choosing a mortgage for you

• Preparing for your interview

• Negotiating your loan