Choosing the right mortgage is almost as important as choosing the right home. These days there are so many different types of mortgages available it’s hard to know which one is right for your situation.

One the other hand, just walking into your local bank branch and asking for a mortgage might not be the right choice either. Bank staff are trained to sell only mortgages available from their own bank, so how can you know they’re offering you the best available?

A qualified mortgage broker is continually trained and updated by each individual bank about their policies and lending products. This means your mortgage broker is able to compare what different banks are offering and then source the ideal home loan to suit your budget and your personal circumstances.

What Does a Mortgage Broker Do?

A professional mortgage broker will listen to your needs and spend time with you learning about your budget and your home loan requirements. Once he or she has a grasp on your financial situation they will identify the right mortgage – and the right lender – to suit you and your goals.

Your mortgage broker will then act as an intermediary to the bank, preparing your application for you and presenting all documentation to the bank on your behalf.

Mortgage brokers are specialists in their field of expertise. It’s their job to navigate through the confusing bank jargon, find those hidden fees and explain them to you so you understand the terms of the home loan you’re entering into.

Will a Mortgage Broker Know Which Bank is the Best?

Mortgage brokers are given access to all the rates and loan-types offered by the banks and lenders. This means they can quickly compare variable rates against fixed rate mortgages and show you the differences between them.

The truth is the ‘best’ bank out there is the one that best suits your situation, your budget and your requirements.

Your own situation might be better suited to a fixed rate. Some people are more suited to variable rates. Some investors don’t even want to pay off their mortgages, opting for ‘interest only’ payments. Everyone’s situation is different.

This is where mortgage brokers are important as it’s their job to know how to identify what solutions could work for you.

How Do I Choose a Mortgage Broker?

There are many mortgage companies in Australia to choose from. You should be careful to choose your mortgage company based on their industry accreditations and professional memberships.

Most banks require parent mortgage companies to be members of industry regulatory bodies, such as the MFAA or FBAA. Don’t be afraid to ask your mortgage broker for their qualifications and evidence of MFAA or FBAA membership.

How Much Does a Mortgage Broker Charge Me?

A good mortgage broker shouldn’t charge you anything for their services. They’re paid a commission by whichever bank they introduce you to. This means their service to you should be free of charge, while they charge the banks their upfront commission rate.