Like finding a good lawyer, accountant or architect, you only really know if they are good once you are well through the job or finished? Even a good referral might not be reliable as 85% LVR no LMI loans, Family pledge and reducing mortgage insurance are not things that all brokers do regularly, and some lenders don’t even offer it. This is a big reason we have gathered experienced brokers together for you and make them available to you at no cost.
You can of course research brokers and then develop a checklist, put time aside to interview 3 or 4 brokers then decide. As time is valuable for us all, the better alternative is to make contact with Finance Professionals for a free 20 min phone meeting and we will then be able to match you with a suitable pre-screened broker.
Here are some typical questions asked about mortgage brokers:
How do I choose a good broker?
We have already qualified and found selected brokers across Australia that we can refer you to. We hand pick the brokers based on a 10 step program:
Minimum 5 years industry experience
Diploma of Finance and Mortgage broking qualification
Hold personal accreditations with a broad range of lenders
They have qualified with ASIC to hold their own Credit license
They are solution driven and creative thinkers rather than pick the first answer and run with it
They appear personable and service driven
Peer reviewed by at least 2 lenders
Peer reviewed by their Aggregator
Ongoing positive feedback from the clients referred.
Are brokers formally qualified?
Yes. The minimum qualification before a broker can practice is a Certificate IV in Finance and Mortgage broking. Police checks are also mandatory as is membership of an External Dispute Resolution Scheme like www.COSL.com.au , completion of the Anti-Money Laundering and Counter-Terrorism Financing compliance training and membership of industry associations www.mfaa.com.au or www.fbaa.com.au .
Bank lenders have to do the same minimum Cert IV certification; however they can start working as a lender, whilst they are learning.
Whilst Cert IV is a great start, like most courses, the real learning starts on the job and it takes 2-3 years minimum for someone to start to be effective and even 15 year veterans say they learn something new, regularly.
The next level up is a Diploma in Finance and Mortgage Broking and this plus 5 years experience, is the minimum level of broker that we pre-qualify for you. The best brokers normally have relevant life skills like experience in other finance products, experience running business, statistical analysis, accountants or compliance related roles.
Why do banks use brokers if it costs them commission money?
There are 4 reasons:
It actually saves money. It’s expensive for banks to recruit and train staff, supply desks, phones, computers, pay sick pay, super, payroll tax and supply office space. Money has to be spent advertising to bring clients in and on top, bank staff are paid regardless of whether a loan enquiry is successful or not so there is a lot of expense and waste. Compare this to the broker who receives no contribution for overheads, has to find their own clients and only gets paid for a successful loan settlement.
New clients. Banks preference new clients as it expands their client base and brings more deposit funds that they can then on lend. Typically consumers go to the bank they already use for a new loan, whereas brokers often introduce consumers to new lenders with better rates.
Necessary for non banks. Some lenders like ING, Homeside, Macquarie Bank and mortgage managers don’t have branches at all. Lenders like Suncorp, Adelaide Bank. AMP and many credit unions have very limited branches, so without brokers they will struggle to expand.
Banks have little choice! Mortgage brokers currently account for over 50% of all mortgage loans written in Australia, and 63% of new loans to banks, so if a bank was to stop using brokers, that’s a big part of the market they would miss out on.
Contact us know for a free phone meeting to discuss your needs and scenario.