Show that broker you know your loans

MORTGAGE brokers help navigate the huge range of loans on the market, using algorithms and technology based on your personal details to find the loan that suits you.

But you want to know they aren’t just signing you up to the loan that gives them the easiest path to the best commission. So arm yourself with knowledge and ask them questions that will show you are serious and have done your due diligence.

HOW DO YOU GET PAID?

Mortgage brokers are legally required to be transparent about commissions, said Mortgage Choice’s Jessica Darnbrough. “As a borrower, you don’t have to pay your mortgage broker, your chosen lender will,” Ms Darnbrough said.

“Still, it is good to ask your broker how they get paid and if different lenders pay the broker different rates of commission.”

HOW MANY LENDERS DO YOU HAVE ON YOUR PANEL?

Brokers do not have to deal with every single lender, but a range of majors, small banks and credit unions means more choice and a better chance to find the right product for you.

CAN YOU PROVIDE A LIST OF MUST-HAVE DOCUMENTS?

“Ask for a list of the paperwork or financial statements to bring to your first meeting,” she said. “It will show you are ready to get the ball rolling.”

WHAT HOME LOAN FEATURES ARE RIGHT FOR ME?

“For some borrowers, an offset account or redraw facility may not make sense. If you ask your broker what home loan features are right for you, it will show you have done your research.”

CAN I MAKE ADDITIONAL REPAYMENTS?

“Depending on your loan type, you may not be able to overpay your mortgage. Your broker should talk you through your repayments and (how) to make additional repayments.”

CAN I SWITCH INTO A FIXED RATE OR VICE VERSA?

“Before switching loan types, it is important to know the costs involved as well as the pros and cons of switching..”

WHY IS THIS LOAN RIGHT FOR ME?

“Your broker will give you a few loan options. Ask them to explain why they are right for you and your situation.”