3rd June, 2024

How to choose a great mortgage broker?

Melbourne Mortgage Broker

If you are trawling the internet to find a great mortgage broker then these seven tips are what you should be looking for;

  1. Minimum Five Years Broker Experience: Ensure your broker has substantial experience handling various scenarios and providing you with experienced advice earned over years, not months. Newer brokers will be desperate to originate your loan application at all costs and will often lack the experience to prepare a high-quality mortgage application submission that may result in your loan taking longer to be approved or even declined.
  2. Strong Online Google Reviews: Check for positive reviews and testimonials from previous clients to gauge their reputation and service quality. Be wary of lots of short reviews that appear in a condensed period, as they are less likely to be legitimate. Instead, look for someone like AXTON Finance, who has hundreds of excellent reviews over many years. A simple independent search of the company name plus the word ‘reviews’ will help you determine if they pass your sense check.
  3. Fully Licensed: Verify that your broker holds all necessary licenses and certifications required by regulatory authorities. As a minimum your licensed mortgage broker should have a Certificate IV in mortgage lending but preferably a Diploma in Mortgage and Finance Broking. Licensed mortgage brokers should be members of the MFAA (Mortgage Finance Association of Australia) and/or the FBAA (Finance Brokers Association of Australia). You can check their credit license status via the government’s ASIC (Australian Investment & Securities Commission) website here. Mortgage Brokers are also required to be members of the government’s Australian Financial Complaints Authority (AFCA) should there ever be the need to lodge a complaint that cannot be resolved.
  4. Comprehensive Product Knowledge: Look for a broker who is well-versed in various mortgage products and scenarios and can offer you tailored options that fit your needs. Not all mortgage brokers are experienced enough to handle your application if you have any unique or complex variables about your situation especially if you are self-employed, have complex income streams, are an expat and/or a high net worth individual.
  5. Transparent Fee Structure: Ensure that your broker provides clear and transparent information about their fees and commissions to avoid any hidden surprises. All licensed mortgage brokers are required by law to disclose their remuneration earned on all regulated loan applications lodged to help comply with best interest duties that champion your interests first.
  6. Excellent Communication Skills: A good mortgage broker should maintain open lines of communication, keeping you informed throughout the process and promptly addressing any concerns. Ideally, your trusted mortgage broker will be updating you through efficient systems of communication instead of your chasing them up seeking an update.
    Proactive and Personalized Service: Choose a broker who takes the time to understand your financial situation, goals, concerns and preferences, offering proactive and customized advice rather than a one-size-fits-all approach.

This checklist will help you find a mortgage broker who can provide valuable guidance and support, ensuring a smoother and more beneficial mortgage experience.

As shameless self-promotion, we are confident we will pass all seven points summarised above, so why not save yourself the time and risk and call us for an obligation-free chat today?

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