[cs_content][cs_element_section _id=”1″ ][cs_element_layout_row _id=”2″ ][cs_element_layout_column _id=”3″ ][cs_element_headline _id=”4″ ][cs_element_gap _id=”5″ ][/cs_element_layout_column][/cs_element_layout_row][cs_element_layout_row _id=”6″ ][cs_element_layout_column _id=”7″ ][cs_element_accordion _id=”8″ ][cs_element_accordion_item _id=”9″ ][cs_element_accordion_item _id=”10″ ][cs_element_accordion_item _id=”11″ ][cs_element_accordion_item _id=”12″ ][cs_element_accordion_item _id=”13″ ][cs_element_accordion_item _id=”14″ ][cs_element_accordion_item _id=”15″ ][cs_element_accordion_item _id=”16″ ][cs_element_accordion_item _id=”17″ ][cs_element_accordion_item _id=”18″ ][/cs_element_accordion][/cs_element_layout_column][/cs_element_layout_row][/cs_element_section][/cs_content][cs_content_seo]FAQs
▸ WHAT DOES A MORTGAGE BROKER DO?
Mortgage brokers are qualified finance industry professionals. They work with you to determine your borrowing needs and objectives, and to help you determine how much you can borrow.
Like your solicitor, accountant or financial planner, we are specialists in what we do and will provide you with the right finance solution to help you achieve your goals. With a mortgage broker, you can expect a more personalised level of service than you would usually receive directly from a lender. Additionally, our brokers have access to a wide variety of lenders. This means your broker can compare lending products from different lenders to find a loan that’s just right for you.
▸ DO YOU CHARGE FEES FOR HOME AND INVESTMENT LOANS?
Some mortgage brokers charge a fee for their services and some don’t. When you take out a loan via a mortgage broker, it does not cost you more in loan repayments. Brokers get paid a commission by the lender for bringing new business to them, but this does not impact your interest rate.
Some brokers charge a fee for their service. They must disclose this fee upfront to you so that you know what it will cost if you engage their services.
▸ DON’T YOU JUST RECOMMEND THE LENDER WHO PAYS YOU THE MOST COMMISSION?
Nope! First of all, there is very little difference between the commissions paid by the various lenders to us brokers. There is also legislation in our industry called the National Consumer Credit Protection Act (or NCCP), that is designed to protect consumers and ensure ethical and professional standards in the finance industry. We tell you upfront what commission we will be getting from the lender. Our job – our only job – is to find a competitive loan for your needs and objectives.
▸ ISN’T IT MORE EXPENSIVE TO USE A BROKER?
Some brokers charge a fee for their service which they must disclose to you up-front before you engage their services. However, the costs of the loan are the same. These costs depend on the loan and lender you choose. If you want to save on loan costs, just tell us. We can locate loan products from the lenders with the lowest fees and charges.
▸ HOW MUCH CAN I BORROW?
There are specific factors that need to be considered when determining how much a customer can borrow, such as income, employment position, the deposit saved, current living expenses and any liabilities. Our borrowing calculator can give you a rough idea of how much you may be able to borrow. For a more accurate assessment, please give us a call and we can go into your options and discuss your circumstances in more detail.
▸ SHOULD I GO FIXED OR VARIABLE?
A mortgage broker will recommend a product based on what you say is most important to you. For example, you may ask for a loan you can pay off quickly, something that is low cost, or for guaranteed repayments. We take all this into account, but we also live by the rule – for flexibility, take a variable rate loan, for budget certainty, take a fixed rate loan, for both, take a split loan.
▸ I AM NOT IN YOUR AREA, CAN WE STILL WORK TOGETHER?
Sure thing! We are mobile brokers so we can come to you!
▸ WHICH LENDERS DO YOU DEAL WITH?
We are Connective Brokers and we have access to many lenders. What this means for you is that we have a plethora of choices when it comes to lenders and loans. We’ll find you a whole bunch of options that could work for you and your situation.
▸ WHO SETS INTEREST RATES?
Mortgage brokers do not set rates. The Reserve Bank of Australia meets on the first Tuesday of every month to determine the official cash rate for the country. The lenders then use this information to set their own rates. Lenders also adjust their rates according to their costs and other economic considerations.
▸ WHY SHOULD I USE A MORTGAGE BROKER IF I CAN GO WITH A BANK?
Lenders will only sell you their own products. Each bank (or lender) has a variety of loan products on offer, so the issue you face as a consumer is, ‘which loan is right for me?’ This is where your mortgage broker becomes an invaluable resource! If you go directly to the bank, you will only be offered the loan options available through that one lender. As your mortgage broker, we are across many lenders and all of their loan products, with our sole purpose being to find a suitable loan to match your personal financial circumstances and goals.[/cs_content_seo]
