What is a mortgage broker? Flashcards
What is a mortgage broker and should you use one?
Are you considering using a mortgage broker to help you find a home loan? Learn more about what mortgage brokers do, some of the potential pros and cons of using them and what questions you may want to ask when meeting your broker.
What is a mortgage broker?
A <a>mortgage broker</a> is a type of financial professional who specializes in helping their clients to find a home loan. Their job is to gather information about the needs of their clients and to suggest lenders and products that match those needs. Once they have helped their client to select a home loan, a mortgage broker may also assist the home buyer with the application process.
What does a mortgage broker do?
A mortgage broker is essentially a conduit between you and the home loan providers they work with. Their first job is usually to assess your financial affairs in order to put together a picture of your credit-worthiness and borrowing capacity. This helps them to determine what type of home loan might be right for you.
What questions should you ask a mortgage broker?
- Are they licensed?
According to Moneysmart, you should check that your broker is licensed to give you credit advice. You could ask your broker to give you details about the licenses they hold, or do an online check. Industry bodies representing mortgage brokers, such as the Finance Brokers Association of Australia Limited (FBAA) and the Mortgage & Finance Association of Australia (MFAA) may be able to assist you with finding an accredited broker.
How many lenders do they deal with?
Generally speaking, the more options a broker can offer you, the better. There may be little advantage to using a mortgage broker that recommends products from only two or three lenders. It could also be worth asking whether they have a bias towards any particular lender and if so, why.
What are their fees and commissions?
Consider enquiring about how much the mortgage broker will be paid by the financial institution for referring your business to them. Do some lenders pay them more than others if they secure a sale, for example? It could also be worth checking how their commission will be structured. For example, will it be an upfront commission or one that is paid to them on a recurring basis for as long as you have the loan?
What is boat mortgage?
A boat loan (which can be referred to as a secured loan if security is sought by the lender) involves a finance company lending you the money to purchase the asset and retaining security over it for the life of the loan. Boat loans can be arranged for both personal use (such as a consumer loan) or business use (such as a chattel mortgage).
If you are looking for expert’s advice for boat loan, boat finance in Sydney is one of the best advisor for it.
