Choosing a mortgage is serious business—depending on the loan you go for, you can either have a challenging or simple time paying it back over time. Unfortunately, selecting a home loan is easier said than done. The vast array of mortgage loans, not to mention the complexities involved, is sure to discourage anyone from looking for the right mortgage!
Although finding the right mortgage that works for you is in no way easy, you don’t have to have a difficult time searching for one. With a mortgage broker, you’ll be able to navigate every option and eventually land a loan that fits your needs.
If you want to work with a mortgage broker to help you get a home loan, follow our tips to find the right one to work with:
1. Do Your Research
Before you start looking for a broker, get a clear idea of the type of loan you want. Applying for a home loan is serious business—it’s crucial to figure out what you want out of a mortgage to scrutinise the recommendations of different brokers better.
To determine what to look for in a mortgage, ask yourself the following questions:
- What loan features do I want?
- Should I go for a fixed or variable interest rate?
- What’s the monthly repayment I can afford?
- What’s my preferred repayment period?
- How much can I shell out for a down payment?
Once you’ve done your homework, you’ll be able to look for different mortgage brokers, compare each one and decide who can provide you with a loan that works for you.
2. Find Out How a Mortgage Broker Is Paid
Mortgage brokers usually don’t charge you for their services. Instead, mortgage brokers get paid commissions from the banks for arranging their loans, which can affect the advice they’ll provide you.
A mortgage broker can get either of these two types of commission:
An upfront commission is a percentage of the loan’s total value, which means that the broker will have greater pay-off when the loan is larger. We’re not saying that brokers paid through an upfront commission are only out to earn more money, but you should be wary when recommended with a larger mortgage.
Trail commission refers to the percentage of the mortgage that a broker will receive over the life of the loan. Although you won’t have to worry about ulterior motives when recommending a larger loan, they won’t be obligated to provide any service to you during the life of the loan.
3. Ask About Their Accreditation and Experience
When looking for the right mortgage broker, make sure that they have the required qualifications to provide you with a loan and offer advice.
Your broker should possess an Australian Credit Licence so that they could act as an authorised credit representative. To find licensed mortgage brokers, use the Australian Securities and Investment Commission Connect’s (ASIC Connect) Professional Registers.
Although licensing is essential for any mortgage broker, keep in mind that having qualifications doesn’t automatically guarantee the quality of their service. Make sure to ask potential brokers for their experience to ensure that they’re equipped with the knowledge and expertise needed.
Looking for the right home loan can be challenging, but with a mortgage broker on your side, you’ll be able to find one that best suits your circumstances. As long as you follow our guide, you’re sure to work with the best mortgage broker to help you finance your dream home!
Are you having trouble looking for mortgage options? Then, we at Wealthy You might be able to help! Our mortgage company is home to some of the best mortgage brokers in Sydney who can offer you various mortgage solutions to meet your specific financial needs. Get your loan approved today!