So you’ve decided to partner with a mortgage broker to smooth your first – or return – entry into the world of property, mortgages, and loans. Good choice!
But before you choose your mortgage broker, it’s worth understanding the value they bring to the equation and how they make money. Because you don’t pay us a dime!
What can I expect from a mortgage broker?
A mortgage broker will work with you to understand your goals and objectives, as well as your borrowing capacity. They will help you secure a loan that meets your needs from a panel of lenders. This includes reviewing a range of loan products, negotiating lenders on your behalf, and handling the loan application.
Many home owners and property investors work with mortgage brokers because they provide expert knowledge of the lending landscape. Researching loan products can be time consuming, however mortgage brokers have the features of numerous lenders’ loan products at their fingertips, saving you a lot of legwork.
A good broker will follow the legal requirements and give each client a privacy and credit guide. At SFE Loans, we use a letter of engagement to set both your expectations of us and our expectations of you. This letter protects both parties and ensures clients have a clear understanding of our process from start to finish.
How do broker commissions work?
Lenders pay mortgage brokers a commission on the loans they arrange for customers. Generally, mortgage brokers receive two types of commission from lenders.
They may receive an upfront commission based on the amount of the loan settled. They may also receive what’s known as trail commission calculated on the outstanding balance of the loan.
I’m not a first homebuyer – can a mortgage broker still assist me?
If you’ve bought property before, chances are you’ll have some understanding of the lending environment. However, loan products change frequently. Lender terms and conditions do too, so working with a mortgage broker can help even the most seasoned buyer secure tailored loan product.
Mortgage brokers provide an expert and time-saving service to loan customers all over Australia.
How much does SFE charge?
A consultation with SFE is complementary. We are happy to sit with you and give our best advice, and it will cost you nothing.
For more information or to help you secure your home loan, contact us today.
*Our entire service is at no cost to you, unless you withdraw after formal approval or refinance within two years. If you officially engage us for your loan and go through the whole lending process, you will not pay a penny for our expert service!