Responsible lending and transparent customer support is something that credit lenders as well as credit service providers, i.e. mortgage brokers, should actively exercise.  Through the   Australian Securities and Investment Commission (ASIC), this has been made possible with the new standard consumer credit laws and regulations.

A current survey discovered 41% of new first property owners mentioned their mortgage broker was their most important source of information for mortgage advice.  Around 40% of new home loans in Australia are acquired through mortgage brokers.

There are a lot of mortgage brokers nowadays but the question is, how do borrowers obtain the right mortgage broker for their needs?  Do some research so that you understand and determine what makes one mortgage broker standout from the rest.

Create a checklist when looking for a mortgage broker.  This can assist you in knowing the types of services they offer.

Mortgage brokers should work with only your best interests in mind

●      What’s their commission rate?  Do they get the same commission rate regardless of lender or product chosen?

●      Do they have their own home loan products?  Let them explain why they think the product they endorsed is the right product for you and what’s the difference between the other products in their list.

●      Do they receive alternative ways of payment and/or any referral fees paid for client introductions?

●      Did they look into your ability to repay the home loan amount?

●      Did they get a Customer Charter and Finance Broking Agreement that lays out their SLA’s, remuneration and dispute resolution policy?  Let them explain their complaints process and as well their privacy policy.

●      Can they explain the application process from enquiry to settlement as well as mortgage processing times?

●      Can they provide full disclosure of commissions and its calculation?

●      Are their services offered at no extra cost?  Aside from the regular home loan application fees, check if they don’t charge you for their services.

Mortgage brokers should be able to show excellent professional standards.  Check if they …

●      …are compliant with the National Consumer Credit Protection legislation.

●      …have completed an accredited mortgage broking training course.  You may also check if they have qualifications for Certificate IV in Financial Services.

●      …have enough professional indemnity insurance.

●      …are members of Mortgage & Finance Association of Australia and comply with its Code of Practice.

Mortgage brokers should be able to offer a variety of home loans.  Check if they…

●      …have access to a number of lenders – big banks, smaller banks, building societies and credit unions .