Choosing a mortgage broker is one part of preparing for a property purchase or refinance. Mortgage brokers may differ in their experience, lender accreditations, communication methods and the types of lending enquiries they handle.
A mortgage broker may explain indicative borrowing capacity, lender requirements, loan features and the application process. They may also gather information and documents, compare available options from their lender panel and communicate with the selected lender.
Consumers may wish to compare several factors before choosing a mortgage broker. With so many options available, it can be tempting to select the first name you find online or simply go with a recommendation without asking important questions.
Considering a broker’s experience, accreditations, lender panel, communication methods, fees and service scope may help consumers compare available providers.
FinanceCorp provides credit assistance to home buyers and property owners in Western Australia and across Australia. Its brokers gather information about each consumer’s requirements, objectives and financial situation and explain and compare available options from the FinanceCorp lender panel, subject to broker accreditation and lender criteria.
Why Comparing Mortgage Brokers Can Be Useful
A mortgage is often the largest financial commitment most Australians will make. Even a small difference in loan structure, features, or interest rates can influence how much you pay over the life of your loan.
Different mortgage products have different features, costs and repayment structures, which may be relevant depending on your circumstances. The lowest advertised rate does not automatically mean a loan will have the lowest overall cost or meet the borrower’s requirements and objectives.
A mortgage broker gathers information about the consumer’s requirements, objectives and financial situation before providing credit assistance and comparing available options from their lender panel.
A first-home buyer may seek information about deposit requirements, lender criteria, application preparation and government scheme eligibility. An investor may have different lending requirements relating to rental income, existing liabilities, property details, loan purpose and lender policy.
A broker can provide support throughout the lending process rather than simply assisting with the loan application.
Start by Understanding What You Need From a Broker
Before comparing mortgage brokers, consider your own situation. A broker’s experience, lender accreditations and service approach may be more relevant to some lending enquiries than others.
Are you buying your first home? Refinancing an existing mortgage? Purchasing an investment property? Building a new home? Managing debt?
The type of lending enquiry may affect the experience and accreditations required.
Consumers may wish to ask whether the broker regularly handles lending enquiries similar to theirs and how available options will be explained and compared. Consumers should be given adequate information and time to consider available options without being pressured to select a particular lender or product.
FinanceCorp focuses on understanding each client's circumstances before presenting and discussing available finance options. The company’s approach centres on providing information and support throughout the lending process.
What to Look For When Comparing Mortgage Brokers
Shopping for a mortgage broker requires more than checking reviews or choosing the first person who appears in search results. Relevant considerations may include experience, communication methods, lender accreditations, lender-panel access, fees and service scope.
Here are some important factors to consider:
Experience and industry knowledgeMortgage lending can be complicated. Policies vary between lenders, and every borrower’s circumstances are different.
An experienced broker may be familiar with different lender policies and the information commonly requested for particular types of applications.
Consumers may wish to ask whether the broker has experience with lending enquiries similar to theirs, such as first-home purchases, refinancing, self-employment, investment lending or more complex applications.
Access to multiple lenders
Mortgage brokers compare options from the lenders on their panel and for which they hold the relevant accreditation. They do not compare every lender or product in the market.
A broader lender panel may provide more available options for comparison, subject to broker accreditation, lender criteria and the consumer’s circumstances.
FinanceCorp brokers may compare available options from the FinanceCorp lender panel after gathering information about the consumer’s requirements, objectives and financial situation.
Communication and transparencyA mortgage application may involve documentation, valuations, lender enquiries, approvals and settlement deadlines.
Consumers may wish to ask how often the broker will provide updates, what communication methods will be used and which parts of the process remain subject to the lender or other service providers.
Pay attention during your first conversation. Do they listen carefully? Do they answer questions clearly? Do they explain terms without unnecessary jargon?
These questions may help consumers understand the broker’s communication style and service process.
Questions to Consider When Comparing Mortgage Brokers
Consumers may focus heavily on factors such as speed or an advertised rate when comparing brokers. Other matters, including lender access, fees, communication and service scope, may also be relevant.
Interest rates are one consideration, alongside fees, loan features, lender criteria and the broker’s communication and service process.
Topics to consider include:
Choosing based only on interest rates
The advertised interest rate is one consideration. Fees, comparison rates where applicable, loan features, repayment arrangements and lender criteria may also be relevant.
Offset accounts, redraw facilities, repayment options and fixed or variable rate structures may involve different conditions, fees and features. Their relevance will depend on the borrower’s requirements and objectives and how the features are used.
A mortgage broker may explain relevant fees, features, repayment arrangements and lender requirements rather than comparing only the advertised interest rate.
Not asking enough questions
Some borrowers hesitate to ask questions because they feel they should already understand the process.
Consumers may wish to ask questions about fees, lender access, anticipated timeframes, communication and the application process.
Ask about fees, lender options, indicative processing timeframes and how updates will be provided. Actual timeframes remain subject to the lender and other parties.
Asking About Support After Settlement
Some brokers offer ongoing contact after settlement, while service arrangements may differ between providers.
Interest rates, loan features, lender policies and a borrower’s circumstances may change over time.
A broker may provide information about the current loan and discuss whether the borrower wishes to explore available refinancing or variation options. Any new credit assistance is subject to the applicable enquiries and assessment.
How FinanceCorp Provides Credit Assistance
FinanceCorp provides information and credit assistance throughout the lending process. Depending on broker accreditation and lender availability, the team may assist with home loans, refinancing, investment lending, construction lending, debt consolidation and other lending enquiries.
FinanceCorp brokers may explain and compare available options from their lender panel and outline differences in lender policies, fees, features and application requirements.
This provides consumers with a central point of contact for comparing available lender-panel options and managing communications relating to the selected application.
FinanceCorp gathers information about the consumer’s requirements, objectives and financial situation before providing credit assistance and completing the applicable preliminary assessment.
Questions to Ask Before Choosing Your Mortgage Broker
Before committing to a broker, have an open conversation about their approach.
Ask questions such as:
- Which lenders are on your panel, and which lenders are you currently accredited with?
- How do you compare and present available loan options?
- How do you communicate throughout the application process?
- What experience do you have with borrowers in my situation?
- Will you continue supporting me after settlement?
The answers may help consumers compare the broker’s service approach, communication methods, lender access and relevant experience.
A broker should be able to explain their process, relevant accreditations, lender panel, fees and the way available options will be presented.
Local and Online Service Considerations
Some consumers may prefer a broker familiar with the area in which they are purchasing, while others may prefer phone or online service.
A broker familiar with Western Australia may have experience with local property types, purchase processes and lending enquiries. Available lending options and lender requirements will still depend on the application, broker accreditation and lender policies.
FinanceCorp provides credit assistance to consumers in Western Australia and across Australia through local, phone and online appointments, subject to broker availability.
Compare Mortgage Brokers Before Deciding
Consumers may wish to compare a broker’s experience, accreditations, lender panel, communication methods, fees and service scope before deciding whether to proceed.
FinanceCorp provides credit assistance for a range of lending enquiries, subject to broker accreditation, lender availability and the consumer’s circumstances. Its brokers gather information about the consumer’s requirements, objectives and financial situation before explaining and comparing available lender-panel options.
Contact FinanceCorp to discuss your lending enquiry and learn more about its credit-assistance process. Any lending recommendation or application remains subject to applicable enquiries, verification, preliminary assessment, lender criteria and approval.
Frequently Asked Questions
Is using a mortgage broker better than going directly to a bank?
A bank generally discusses its own products, while a mortgage broker may compare available options from lenders on the broker’s panel. The range considered will depend on the broker’s accreditations, lender-panel access and the type of lending requested.
How much does a mortgage broker cost?
Mortgage broker remuneration and consumer fees vary. Brokers may receive commissions from lenders and may also charge a consumer fee in some circumstances. Consumers should review the broker’s applicable disclosure documents and ask about fees and remuneration before proceeding.
Can a mortgage broker help if I already have a home loan?
A mortgage broker may provide credit assistance relating to refinancing or a proposed loan variation and explain available options from their lender panel. Any recommendation remains subject to the applicable enquiries, verification and preliminary assessment.
When should I contact a mortgage broker?
Some consumers choose to speak with a mortgage broker before beginning a property search so they can obtain an indicative understanding of borrowing capacity, lender requirements and the application process. Any borrowing estimate remains indicative and subject to lender assessment, criteria and approval.
Important information: This article provides general information for educational purposes only. It does not take into account your objectives, financial situation, needs or borrowing requirements and is not a recommendation to use a particular mortgage broker, apply for a particular loan or select any lender or credit arrangement.
FinanceCorp provides credit assistance under Australian Credit Licence 395037. The lenders and products considered depend on broker accreditation, lender-panel access, the type of lending requested, the information provided and the consumer’s circumstances. FinanceCorp does not compare every lender or loan product in the market.
Any references to borrowing capacity, interest rates, loan features, fees, timeframes or lender policies are general or indicative only and may change. All lending is subject to applicable enquiries, verification, preliminary assessment, lender criteria, approval, terms, conditions, fees and charges. Seek assistance from appropriately qualified financial, legal, taxation, property or credit professionals where required.
