What to look for while choosing mortgage Broker?

Hi
I am a First home buyer trying to get into the property market. I have been recommended few brokers by family and friends but not sure if they are good or who to pick . My question to the group specially to brokers is what should I look for while choosing the broker? or what sort of question should I ask before I decide. I been checking Mortgage Professional Australia ranking but that only shows the $ approved not their serviceability etc.

Thankyou for you response in advance.

 

What are you looking for and can you articulate this?

Lowest rate? Loan features (do you know what you want? Offset? Redraw?) Do you need a plan to buy the second, third, etc property? What if some of these conflict with each other?

The more you know the better you can assess the broker.

 

If they've got grey hair, so you know that they deal with the stresses of compliance daily and they drive a beema

 

First thing - don't send them a list of the questions you get off Google.

If you're thinking of investing in property in the future, get a broker of these forums. They are world apart from most brokers out there when it comes to forward planning and loan structuring.

If you're never going to invest in property, customer service and communication will be key - how quickly they get back to your initial email will be a good first indicator.

Good luck!

 

Recommendations here on PC would be a good start. Serviceability is determined by the borrowers financial position. Poor servicing may mean no loan. Thats a poor statistic.. A good broker will assess your needs and income etc and try and find some lenders that fit that and advise on a range of loan related issues and purchasing costs etc incl how much you have saved. Common for a first buyer to need some support. eg First home buyer help.

A few here in Sydney region (apologies to those i miss and this is no reflection on them) - Check members lists on PC. You can use one that is in WA (Jess), QLD (Jamie Moore) , .....Vic with little drama too.
Richard Morgan 0411 282 606
Shahin Afarin 0420 987 683

 

Have a read through this thread. May help.
What to expect from a M-broker

 

Thankyou all for your response.

 

Thankyou for this a good point to discuss with the potential broker. I am only eyeing for first home at this stage.

 

Based on all the discussion i read and to get best out on market rather than just few product from specific bank we preferred to go with broker.

 

Can you imagine upgrading the ppor and then keeping this one as an investment after a few years? The right loan setup can save you thousands.

 

I don't think you'd go too far wrong working with any of the long term brokers from this forum. All have been around for years - and have a long history of providing useful advice.

If you're after someone close to home - I'm sure there's no shortage of Sydney based brokers who'd be happy to help.

Cheers

Jamie

 

All brokers on here I believe are pretty good.

You just have to find one that you get along with and give you the full confidence in what you want to achieve.

 

Good question.

There is lots tools available, for straightforward loans what else do you need to consider? Home Loan Comparison - Interest Rates From 1.77% I Canstar

 

That assumes you know what you want / need in the future. An offset, for example. Or if your situation is even slightly off the standard payg type (eg bonus, commission, investment income).

 

I totally agree, for me it's a mixture of mostly knowing what I want and understanding what else I should consider now and the future.

Currently I mostly know:
- owner occupier.
- P&I.
-
- Amount I need to borrow.
- LVR (based on current equity v loan amount).
- income (before bonuses) v outgoings
- length of loan.

Things I am not so sure on are:
- Interest
-- Fixed v Variable.
-- comparable rate (what it accounts for)?
- Fees (setup, ongoing, exit)
- Offset v Redraw (I need some cash for??)

What else?

 

what your future plans are. Move out and make it ppor? Refinance to buy more property? Sell? Sell when?

You need to understand that things can be good or bad depending on what happens in the future.

Eg a low rate online lender prob doesnt have an offset. That will be a problem in 10 years if you want to upgrade and make the old place an ip. But it may not be a problem if you sell.

some lender might have higher rates and fees, but if you already have other debt and self employed that might be your only option.

you dont want multiple dings on your credit file.

fixed rate will protect you from rate rises, IF they occur, but a problem if you need to sell during the fixed period.