How to Choose a Mortgage Broker in Perth, WA
Living in Perth is somewhat contradictory. Although we’re classified as a city, all Perth locals are familiar with the ‘small town’ vibe: everyone in Perth knows (almost) everyone. And yet, it can still be challenging when choosing a reputable and competitive mortgage broker in the Perth metro area.
The benefits of using a broker when securing a loan far outweigh the negatives. In Australia, mortgage brokers write more than half of all loans.
Like any industry expert, brokers specialise in negotiating and applying for loans – it makes the process much easier for first home buyers overwhelmed by the amount of information available. Brokers have access to a panel of lenders and their products, know the nuances of the industry and are more likely to know the type of loan suited to your circumstances.
Brokers do all the hard work so you don’t have to – and their service is normally free of charge.
But choosing the right mortgage broker requires homework.
Make an informed decision
Simply put, do your research.
Seek advice from your family and friends, but don’t be afraid to outsource to find the broker who suits you. Ask questions that give you a sense of their personality and professional practice.
These include questions like:
· How long have they been in the industry?
· How do they go about finding the loan right for you?
· Are there any challenging aspects of your situation that could affect the process?
Don’t forget to ask yourself if you’re comfortable with them – make sure they take a genuine interest in your situation and are not just in it to make a quick commission. At the end of the day, a mortgage brokers job is to understand their clients so they can help them achieve their goals – not just write a loan.
It’s not a crime to shop around.
Double-check they’re licensed.
Brokers must be licensed when operating inside Australia. Ask about their qualifications, and accreditations – ensure they hold a valid Australian Credit License or Credit Representative Status, are registered with ASIC and are a member of either the Mortgage Brokers Association of Australia (FBAA) or the Mortgage & Finance Association of Australia (MFAA) – the industry regulator.
Mortgage brokers must have a minimum of Certificate IV in Finance and Mortgage Broking, but you’ll find that many will hold a Diploma in Finance and Mortgage Broking Management,
Peter holds a valid Australian Credit Licence (378367) and is a member of the MFAA - the peak national body representing over 13,000 professional finance brokers - and the FAST group, which encompasses a total of over 1,300 brokers and settles more than $21 billion of loans per annum.
Ask how they’re paid
Mortgage brokers are required by law to disclose how they are paid to their clients. A broker’s fee or commission for writing a loan is usually paid for by the lender they use. Each commission amount is different for every lender, which could potentially influence what a broker may recommend.
Ask about their pay structure and compare the fees charged by others to make sure you’re getting a good deal.
For example, while we don’t rely on you to pay for our services, our brokers earn a commission paid by lenders on loans settled that are submitted on our customers’ behalf.
Find out their lender panel
The larger a mortgage brokers lender panel is, the more options you’ll have access to. A good broker will have access to multiple lenders – they’ll be able to compare more packages, interest rates and deals – options that another broker, with a smaller lending panel, will bypass.
In this way, finding a good broker can potentially save you money on your home loan depending on the interest rates and packages available to them.
Peter has access to over 20 different lenders and hundreds of various packages and features to choose from.
To get in touch with one of our brokers or to find out more, give us a call on (08) 9417 3399.
At Select, we make finance simple.