When navigating the vast numbers of available lenders for your next home loan, it’s important to be apprised of all the best possible options for your given circumstances. Let’s be real here, a 500k mortgage will NOT cost you 500k, instead you’ll most likely be paying up to hundreds of thousands of your hard-earned dollars more due to interest rates, taxes, insurances etc over the life of the mortgage.
That’s where a good mortgage broker comes into play and are literally worth their weight in gold. Most competent brokers have close relationships with key lenders, subsequently providing them with inroads to significantly better rates and other deals that the borrower would not otherwise have access to. A really good home loan specialist would also have improved negotiating power on lower interest rates and other costs as the banks would want to continue to do business with the broker.
Essentially, a mortgage broker acts as the middleman between you and the banks. Their role is to work on your behalf to secure the best possible home loan for your needs. On top of that, they will also assist you through the entire application to settlement process.
When searching for a Cairns mortgage broker, be sure to find one will:
- Have a comprehensive understanding of your requirements
- Work with you to discover precisely how much you can borrow
- Work hard to find a range of options best suited to your needs
- Will take the time to fully explain each option and their pros and cons
- Will work with you and help you with the entire loan application process
How do mortgage brokers earn their income?
With a few variations of how mortgage brokers get paid, it’s worth asking the question when first speaking with your potential broker.
- Most brokers receive a fee or a commission from the banks/lenders, so you won’t be out of pocket for any broker expenses
- Some lending institutions will pay a set fee, irrespective of the type of mortgage
- Higher fees may be paid to brokers for offering specific loans
- Some brokers may charge you, the borrower a fee as well as, or instead of the lender’s commission
Always ask so you know exactly what to expect from your mortgage broker.
Before meeting your Cairns mortgage broker:
Ensure your broker is operating legally
It’s always advisable to do some background checks on your potential broker.
- You can check the asic.gov.au professional register for current licensing
- check the listing for ‘credit representative’ and ‘credit licensee’
Write a list of essentials and not-so essentials
Be sure to clarify what’s important to you when discussing your home loan options with a broker. Do you want the cheapest option, or do you want the option with the most choices and flexibility such as additional payment features?
This information will make it easier for your broker to find some options that best suit your needs.
Ask the right questions
- Why should I choose you over other mortgage brokers?
- Is this business a local Cairns business or part of a national company?
- How do you get paid for being my broker?
- Will there be additional fees and what are they?
- What lenders do you work with and why?
- Will you offer me options or just a single mortgage choice?
- Why are you offering me this particular loan?
- What are the benefits and features of this loan?
- What is lender’s mortgage insurance (LMI) threshold and do I need to pay it?
Ask your mortgage broker for a quote
Ensure your quote contains the following information:
- Loan type
- loan amount
- duration of loan
- current interest rate
- fees payable
At the end of the day, you’ll want to make sure that you are entirely comfortable with your home loan specialist. Remember, there are a number of Cairns mortgage brokers, make sure you find the right one for you.
At JGM Lending and Finance, we’re confident that you will be very happy with our mortgage services. As a local Cairns home loan specialist, we have an in depth understanding of the local market and have access to a large range of home loan options for you to choose from. Call Cyndy today for a chat.