How to choose a mortgage broker for your property finance

How to choose a mortgage broker for your property finance
Photo: Rido81, Bigstock

The world of property finance can be complex and daunting for people to enter into, especially if it’s their first time buying a house or commercial lot. If you’re a first time borrower then it’s unlikely that you will know all of the real estate jargon and complex processes that go into property finance.

The best property finance mortgage brokers are able to help you to match your individual needs with a corresponding home loan from a vast array of lenders. In most cases it is more beneficial to secure your property finance through a broker rather than directly through a lender.

It’s crucial that you pick the right mortgage broker who has the knowledge, skills and the network of lenders needed to give you the best possible deal. Let’s take a look at how you can choose a mortgage broker to help you with your property finance.

Start your search

The best place to begin looking for mortgage brokers is amongst your friends and family who have engaged one before. If you notice someone you know got a great deal on their property finance then it’s prudent to ask them which broker they worked with.

A lot of brokers will get most of their business from word of mouth referrals as well as being recommended by real estate agents. Asking your real estate agent for their network of mortgage brokers is also a good place to start.

During this entire time you should be gathering as many names and numbers as you can so you can make an informed choice later on. You should be asking people why they were satisfied with a particular broker and why they engaged them in the first place so that you can compare it with your own circumstances.

Interview your candidates

After you’ve created a shortlist of candidates, begin scheduling interviews with as many of them as you can. Try to make the interviews all occur within the same week so you can dedicate your time to it and not have to worry about remembering weeks in advance.

Questions you should be asking during the interview are:

  • How long have they practised as a broker?
  • Do they have referrals from past clients?
  • What are their typical working hours and their availability?
  • What is their application process for property finance and can it be done online?

Above all, mortgage brokers work to connect homeowners with lenders and take a profit from this connection.  The broker seeks to get the best deal for you because it also means the best deal for them, so most relationships work out of mutual self-interest.

However, a good broker should look at your expenses and also give you a range of finance options and not pressure you into committing to any one choice. You should ask them for a breakdown of lending and brokerage fees so that you get a full picture of how the major transaction will take place.

Ask if they offer low credit lending options

If you have a low or poor credit score you may be surprised by how many lending options are still available to your through the right mortgage broker. While there may be more premiums to pay upfront, good mortgage brokers will have low doc lending options for property finance that you can take advantage of.

They should be asking you questions too

A good property finance mortgage broker should be eager to ask you questions about your marital status, income, bank balances, credit scores and any other information that’s relevant to finding the best loan options for you. Since they are doing business between you and the lender, it’s important they are on the same page as you regarding your financial situation and goals.

If the broker you find is just reading rates to you and not interested in your personal circumstances, financial history or goals, then it may be a sign to find someone else.

Above all, you should find a broker you can trust

As mentioned, the mortgage broker is your point of access to the lender and you’ll want to make sure that you can trust them to provide you with A+ service and support through the process of your property finance.

It’s a good idea to go back through you list of candidates and quickly compare key differences between them.  You should ask yourself if the broker helped you get a better understanding of the lending environment and if they showed an interest in your future financial aspirations.