What a Mortgage Brokers role in helping you buy a property? And why should you use one?
A mortgage broker helps you find and secure a suitable home loan from a lender or financial institution. The job of a broker is to compare your options and look after all the paperwork on the financial side of your home loan. Your mortgage broker will go into bat and negotiate your financier on your behalf and streamline you loan process, saving you time, money and stress.
How does this work? To find you a suitable home loan, your broker needs to understand your requirements. A good broker will prioritise understanding your priorities, how much you can afford, the details of a loan, and the process of applying for a loan.
In this article, we are going to discuss who is a mortgage broker and who pays a mortgage broker Brisbane in an ongoing transaction:
A Qualified Mortgage Broker
- A qualified mortgage broker must be accredited and display their credentials. Along with license number, their name will appear on ASIC’s professional registers. This is public information, and it is free to search the ASIC registry to ensure your broker is properly accredited.
- Your broker will go to market and research options, presenting you with several options. A good broker will be able to clearly explain to you how the loan works, re-payment schedule and compare the features of each option.
How a Mortgage Broker Operates
- A mortgage broker should ask you about your goals and requirements so that he can suggest to you a suitable home loan.
- A mortgage broker in Brisbane should negotiate directly with the lenders on your behalf.
- A mortgage broker can help you get preapproval for a home loan.
- A mortgage broker should do all the legwork from your application to managing settlement with your bank, and keeping you updated throughout the process.
- A mortgage broker or a home loan broker Brisbane should find you home loan options at a competitive rate and with features that suit your circumstances and goals.
- Your broker should keep you informed about market developments even after the settlement, and can periodically review your loan to ensure you have suitable options.
How to Find a Mortgage Broker
Your Solicitor or accountant can refer you to a trusted mortgage broker, or you can find a broker local to you.
Types of Commissions for a Mortgage Broker Brisbane:
A Mortgage Broker is typically by the lender. Unlike banks, Mortgage Brokers are bound by best-interest regulations and can face repercussions if they do not act independently to find solutions that are governed by your best interests.
There are two types of commission that mortgage brokers earn: upfront commission and trail commission:
Once the loan settlements are done, and you receive your funds for a mortgage, the broker receives a one-off commission payment. The commission is not added to your loan amount and will typically be disclosed to you when you sing your financial documents.
The home loan broker Brisbane broker receives a commission every month for the loan’s life span. The lender pays this commission if the client chooses to keep the loan settlement with the said lender.
As the loan amount comes to its own, so will the trial commissioner. It all depends on the lenders.
However, if the client is unsatisfied with their current loan settlement, they might want to refinance their home loan with another lender shortly after settlement. The mortgage broker may have to pay a clawback fee (a fee charged for refinancing the loan).