What is a Mortgage broker?
“A mortgage broker is an intermediary between the borrower and the banks or lenders. Mortgage brokers usually specialises in home loans and other loans for individuals where as a finance broker specializes in business or commercial loans. A mortgage broker can help you compare the suitability of different mortgages to find a one that is suitable for you. Your broker then negotiates with banks or other lenders on your behalf to arrange your loan and manage the process through to settlement.”
Why use a mortgage broker?
“Your mortgage is probably the biggest expense you will ever have throughout your entire life. Differences in the rates, fees and features between home loans can add up to literally $1000s over the life of the loan. A good mortgage broker has access to a wide range of lenders and loans. Therefore, using a mortgage broker can make a big difference to your financial situation.”
What to look for when choosing a mortgage broker
There are some key things that you should consider before choosing a broker:
- Does the broker have access to a wide range of lenders?
- Are they very experienced?
- Do they specialize in the type of mortgages that you are looking for?
- Is your broker independently owned or owned by a big bank?
- Is the broker company only one man, big brand with 100s or 1000s of brokers or boutique brokerage?
- Does the mortgage broker company have local broker options?
Find out more here: mortgage broker wikipedia