Mortgage Broking 101

Nicole Cannon

It never ceases to amaze me how many times I speak to new people who I meet who aren’t fully aware of what the role of a Mortgage Broker actually does. So I thought I would enlighten you all and explain to you what the role is of a Mortgage Broker.

Wikipedia defines A Mortgage Broker as:

A mortgage broker acts as an intermediary who brokers mortgage loans on behalf of individuals or businesses...Mortgage brokers exist to find a bank or a direct lender that an individual seeks with a specific loan the individual is seeking... Mortgage brokers are regulated to ensure compliance with banking and or finance laws in the jurisdiction of the consumer.

However there is so much more to what a mortgage broker actually does:

Your Mortgage Broker is a Listener

They will meet with you to discuss your personal situation in detail. They will outline your current financial position (often called a health check) they will discuss your short, medium and long term goals, intentions and reasons for your loan application.

Your Mortgage Broker is a Researcher

Upon this your mortgage broker will do all the necessary research – with sometimes over 20 lenders to find you some options. They will outline the pros and cons of each lender. They will contact as many lenders as they need to so that they can find you the best optionspecific to your situation and needs.... Believe me it really is amazing as to how different every situation is!

Your Mortgage Broker is a Negotiator

Your mortgage broker may also negotiate your rate with either your current lender or your new lender so that you can get the best rate possible. This can happen on a case by case basis and does depend on your lender, your individual circumstances and loan amount.

Your Mortgage Broker is an Organiser

Your mortgage broker will arrange to collect all your loan documents and will prepare the loan application to the bank on your behalf. They will upload onto the lender portals, submit the paperwork to them and follow this through right through from the submission to settlement.

There are many steps here your broker keeps a track of – receipt of documents, ensuring valuations are ordered and returned in a timely manner, ensuring mortgage insurance will review the file for approval, that documents are printed and sent in time ....and are correct! And when they are returned make sure that all the required documents are there for settlement. The journey does not end here. Your mortgage broker will also be there to help you post settlement; to answer any questions you may have,to discuss and facilitate any changes required to the loan and will also be there to conduct annual reviews.

Your Mortgage Broker is a Communicator

Your mortgage broker will update with you and any other third parties that you wish to be notified on the loan process. Your mortgage broker will also have very good relationships with their banking and lender contacts so that if there are any problems ...and believe me MANY little issues happen behind the scenes that our clients are never aware of ... they know who to speak to so that the problem is sorted and dealt with as quickly as possible.

Your Mortgage Broker is a Time Manager

A mortgage broker can have many files on the go at the same time – it is not uncommon to have at least 15 on the go at once so your mortgage broker has to manage their time very well so that your loan and everyone else’s loan does not got overseenespecially if you have a deadline. Your mortgage broker will meet with you at times that suit your busy lifestyle and will fit into your times whenever possible.

It is very important to note that your interest rate is not any higher for this service!! Sometimes we can get BETTER rates than what the major lenders provide direct to their clients!

Our service is invaluable.

It saves you time. It reduces your stress. It can even help you find a better rate than what you could possibly find if you tried to source a loan yourself.