Why use a broker?

We all know that getting a loan from a bank can be a time consuming and terribly frustrating experience, but should we use a mortgage broker? We have heard that dealing with a mortgage broker can be a less than satisfactory experience so how do we find the best broker and what value do we get from them?

  • Mortgage brokers act as the intermediary between loan providers and the client. Therefore, they should be able to access a wide array of lending institutions to single out for you the best loan product for your specific requirements.

  • A mortgage broker will save you time as they will often come to you. Once they have all of your information, they will put the loan application together for you and do the hard yards with the bank to get it approved.

  • This extends beyond the approval process where New Jeneration Finance is concerned. We not only manage the process but spend time dealing with all parties involved in the settlement process to ensure that settlement occurs in the smoothest possible way. We also spend time with our clients after their loan settles to help them understand the operation of their facilities and in transferring their bank accounts over.

  • Most mortgage brokers provide their services for free, as they are paid directly by the banks which in no way affects the rate you are provided. They may charge a fee where the loan is a difficult one.

  • People are realising that the proper structuring of their mortgage can have a significant impact on their short and long term financial position. Professional advice from a broker can ensure that all bases are covered for you in relation to the structure of your facilities.

What should you look for in a broker?

  • You should look for a broker who is independent, that is, they are not tied to a specific lending institution. A broker will certainly have their favourite lenders based on their experience with the products and service levels received. There are some who are paid the same commission level from all banks, therefore providing a high level of independence.

  • You should also make sure that the broker you use has significant experience in lending. Find out what their background is - is it in finance or a totally different industry?

  • Does the broker have professional indemnity insurance? They should have a reasonable level of insurance to cover them in the event they are sued for negligence or breach of professional duty.

  • Check whether the broker is a lender themselves. You don't want a mortgage broker recommending loans to you if they offer their own loans unless you can be guaranteed that they will always recommend the best loan for you and not lean towards their own loan).