5 Top Tips for Choosing a Mortgage Broker
We understand that it can be hard to know what to look for when engaging a mortgage provider. As BCV Financial Solutions launch our mortgage broking service, we share our five top tips to choosing a broker to help guide you through the process.
- Make sure you’re clear on how your broker gets paid. At BCV, our services are funded by the commission earned from lenders so there is no cost to you. If you’re unclear about any element of your broker’s fees, get them to provide you with an outline in writing. Also understand how wide the pool of lenders they have access to is. The more lenders that a broker has access to, the more likely you are to get a competitive rate, plus you’ll get feature flexibility such as offset or redraw. Remember that a broker is obligated to disclose in writing the source of fees, trailing commission and any other remuneration or benefit that they will receive.
- Check that your broker asks a lot of in-depth questions at your initial meeting. There’s more to mortgage broking than sourcing the lowest rate. You can do that yourself online. The most effective mortgage brokers are those who have an in depth understanding of their client’s financial position and an appreciation of their future goals and aspirations. A mortgage or home loan application is often supported by up to date tax returns, income protection insurance and business financials. As a full service financial services firm, BCV is in a strong position to be able to be as effective as possible for our clients as we are across their entire financial life.
- Be clear on the lifestyle that you want to achieve. Maxing out on the cost of the property itself means a lot of time spent at home and we know from client’s experiences that the more time you spend there, the more you find that you want to change about it! Whether you’re looking for a mortgage as a first homeowner, a property investor or to borrow via a self-managed super fund, the questions are the same. What disposable income do you want each month? What cash do you want for your holiday each year? These are all questions that we make sure we’ve considered before presenting a package to a client.
- Regularly review the offer that you’re getting. We find that most existing homeowners who come to us haven’t shopped around in years, sometimes decades. Moving providers is often seen simply too much like hard work. But you could be saving yourselves thousands of dollars a year. For most of us, a mortgage is a life-long commitment, but lives change and what we want from a mortgage does too. It’s well worth doing a bit of research just to see what else is out there. You could be saying hello to that reno you’ve been wanting or holiday you’ve been eying up in no time!
- Check out their credentials. A basic, but essential element of engaging a mortgage broker. Make sure that your broker is a member of an external dispute resolution scheme such as Credit & Investments Ombudsman (CIO) as well as a member of FBAA or MFAA. Even think about asking to be put in touch with an existing client – a good broker should feel comfortable with you speaking to someone they have arranged a mortgage for.
If you would like to talk to someone about arranging a new mortgage or refinancing an existing one, call one of BCV’s mortgage brokers on (03) 9781 4533 or drop into our premises at 3/72-76 Dandenong Rd West, Frankston, Vic to discuss your options and see how we can help.