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How to find a trusted mortgage broker in Sydney, Australia

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How to find a trusted mortgage broker in Sydney, Australia

It’s normal to be cautious when looking for a mortgage broker.  After all, buying a house is a huge investment, and perhaps the biggest decision you’ll make in your life, hence it’s important to be sure that you’re making the best choice possible. Finding the right house is just the beginning of the process, and there are a lot of additional factors such as starting with finding the best suburb, finding a trusted mortgage broker, getting the best mortgage rates, stamp duty, paperwork and more. However, the daunting process can be a little easier with the assistance of a broker, but you must be sure they are trustworthy and experienced before selecting the broker.

A mortgage broker is an intermediate between the borrower and lender. The broker helps the borrower to get hitched with the best possible interest rate.

But the question is, how do you find if the broker is trustworthy. It can be a somewhat daunting experience finding the best mortgage broker. We’re dedicating this blog to help you in your quest of finding the best mortgage broker in Sydney that appeases your needs.

Check educational qualifications and work experience

The very first thing you should inquire about is the educational qualifications, and what experience the broker holds. 

Most of the professional brokers will have a diploma, while others have other credentials such as a degree in finance, economics or accounting. It’s better to go for the brokers who have more credentials than needed by the government and own an Australian Credit License or/and are qualified to act as an authorised credit representative.

Check accreditation

It is better to invest time in choosing your broker than wishing that you hadn’t chosen them later on. The wrong one can be costly and you will pan out with a mortgage that doesn’t truly fit your financial situation. Therefore, before sealing your deal with a broker, make sure they have licenses which include – Accredited under the National Consumer Protection Act, Certificate IV and a Diploma in Financial Services, has a membership of Mortgage & Finance Association of Australia( MFAA) or Finance Broker Association of Australia (FBAA), and a member of Credit Ombudsman Service Ltd (COSL).

Check their lender panel

A lending panel can provide you with a brief description of their work and experience. Brokers are constrained by a list of lenders they can access, this list has been named as a lending panel. Check the list if they have connections with a range of reputable institutions and how many lenders they use on their panel. 

Don’t be afraid of asking questions, be sure the rate they are offering matches you need. 

  • Ask about why they have shortlisted the specific lender. 
  • Ask him/her for the top 10 lenders they send the loan to and what percentage of loan they deliver to their door. 
  • Ask your broker to explain all the documents related to loan and contract 

A trusted mortgage broker will provide you with satisfactory answers and provide transparency with all the information you need.

Know about their payment process

A mortgage broker in Sydney provides free assistance to the borrower and gets paid commission from the lenders for arranging the loan. There are typically two types of commission they get

An upfront commission: these rates are similar across lenders, it’s a percentage of the total value of the loan, simply the greater the loan, the greater they’ll get paid off. 

A trail commission: in this the brokers are paid over the life of the loan. The percentage of the loan broker continues to earn till the end of the loan.  

You have the right to ask about their commission and the benefit they’ll receive.

See if they explain everything

We have a variety of options available in the market. A credible broker will bring forward a number of options on your platter and will be able to explain the loan and reason for recommending. 

A good broker will not pressurize you for purchasing a loan. If a broker is putting weight to seal the deal without properly providing sufficient information and many options, take that as a red signal and step away, stay away from such brokers.  

However, always remember you have got all rights to say no if you aren’t satisfied with the deal. 

If the process still bewilders you, we are always there to help, chat with our professionals to crack the deal with the best mortgage broker in Sydney, Australia

Call Denis Mulcahy on 9907 4624 or visit  freshwaterfs.com.au to see why we’re one of the best mortgage brokers in Sydney.

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