How to find a mortgage broker

When it comes to finding reliable professionals, personal recommendations can be invaluable. Reach out to friends, family, or colleagues who have recently obtained a mortgage in Australia. Ask them about their experiences with mortgage brokers and if they can recommend anyone based on their satisfaction and the successful outcome of their mortgage process. 

Real-life experiences and word-of-mouth recommendations can give you a good starting point in your search.

Find qualified mortgage brokers in your area and compare reviews and ratings from their customers.

RateCity’s mortgage broker search page provides personalised broker profiles, click-through call function, a call back service and the broker’s approximate response time. You can narrow your search by location, simply by typing in your suburb or postcode.

You’ll be able to see each broker’s name, ABN, the type of licence they possess, their licence number, suburb and postcode. Google reviews and star ratings are also displayed, along with the broker’s area of expertise. For example, some brokers may specialise in securing investor loans, while others may focus on debt consolidation.

A broker based in your neighbourhood may know mortgage providers more familiar with local conditions, such as the average wage people earn and how much they tend to borrow. The expertise and connections offered by local mortgage brokers may better serve you in obtaining a mortgage more suited to your situation.

Reputable mortgage broker associations, such as the Mortgage and Finance Association of Australia (MFAA) or the Finance Brokers Association of Australia (FBAA), can be useful sources to find registered and accredited mortgage brokers. 

Visit their official websites, where you can access search tools or directories that list qualified brokers. Opting for a member of these associations ensures that the broker adheres to professional standards and practices.

You can utilise professional directories like Yellow Pages or True Local, which provide comprehensive listings of businesses and professionals, including mortgage brokers. 

Digital directories often feature user reviews and ratings, allowing you to gauge the reputation and reliability of different brokers. Read through the reviews and pay attention to brokers with positive feedback from their clients.

Engaging with local real estate agents can be a valuable source of recommendations. These agents have a deep understanding of the property market in your area and often work closely with mortgage brokers. 

Seek their advice and ask if they can recommend reputable brokers who are familiar with your local market. Real estate agents can provide insights based on their experiences and help you find a broker who can navigate the intricacies of your specific area.

Most mortgage brokers don’t charge customers. Instead, they’re paid by the lender who grants the loan. This means that borrowers generally do not have to pay any fees or charges to the broker for their services.

Mortgage brokers are typically paid through a combination of upfront and trail commissions. The specifics of their payment structure can vary depending on the broker and the lender they work with.

• Upfront commission: When a broker successfully helps a borrower secure a loan, they receive an upfront commission from the lender. The amount of upfront commission is usually a percentage of the loan amount and can vary based on factors such as the lender, the loan product, and the loan-to-value ratio (LVR). Upfront commissions are typically paid by the lender, not the borrower.
• Trail commission:In addition to the upfront commission, mortgage brokers may also receive ongoing trail commissions. These are calculated as a percentage based on the outstanding loan balance and are paid by the lender to the broker over the life of the loan.

It's crucial to verify the credentials of potential mortgage brokers to ensure their legitimacy. In Australia, mortgage brokers must be licensed and accredited by the Australian Securities and Investments Commission (ASIC).

Visit the ASIC Connect website and use their search feature to confirm the broker's credentials. Checking their licensing status ensures that you are working with a qualified professional who meets the necessary regulatory requirements.

Some mortgage brokers work independently, while others are part of a mortgage franchise or aggregator. You can find online mortgage brokers who can assist you by communicating via email or messaging, without the need to leave home.

If you're dealing with a solo broker, ask about their lender panel. This is the group of lenders they've built relationships with over time. It can be a good thing because they might have a solid local presence but, on the flip side, their options may be limited compared to franchise brokers. They might not have the same negotiating power either. However, going solo could mean you'll get a more personalised and tailored service.

If you're considering a franchise broker, they often have access to a wider range of lenders through their franchise network. They also receive regular professional training. Just keep in mind that franchise brokers may not offer the level of personalised service as that of an individual operator due to their larger customer base. Additionally, they might not be as familiar with local lenders either, especially those who work with buyers in unique financial situations.

If convenience is your game or meeting in person isn't possible, an online mortgage broker might be worth considering. These tech-savvy brokers can provide similar advice over the net, at a time that suits you. - no worries about office hours or long waits. In some cases, they may even come to your home for a consultation.

Before you jump into a broker consultation, have a clear idea of what kind of home loan you're after. This way, you can ask the broker specific questions and seek guidance tailored to your needs. Maybe you want a loan with an offset account or need a lender who understands self-employed applicants. Let the broker know your preferences.

Remember, finding the right mortgage broker is all about finding someone who understands your neighbourhood, has the right lender connections, and can provide the guidance you need for your home loan application.