WHAT DOES A FINANCE BROKER DO?
Finance brokers are qualified finance industry professionals. We work with you to determine your borrowing needs and objectives, and to help you determine how much you can borrow. Brokers help to ensure that you don’t take out a loan that is not right for you.
Like your solicitor, accountant or financial planner, we are specialists in what we do and will provide you with a suitable finance solution to help you achieve your goals.
With a finance broker, you can expect a more personalised level of service than you would usually receive directly from a lender. Additionally, our brokers have access to finance products from a wide variety of lenders. This means your broker can compare lending products from different lenders to find a loan that’s just right for you.
DO YOU CHARGE FEES FOR LOANS?
Some finance brokers charge a fee for their services and some don’t. When you take out a loan via a finance broker, it does not cost you more in loan repayments. Brokers get paid a commission by the lender for bringing new business to them, but this does not impact your interest rate.
Some brokers charge a fee for their service. They must disclose this fee upfront to you so that you know what it will cost if you engage their services.
DON’T YOU JUST RECOMMEND THE LENDER WHO PAYS YOU THE MOST COMMISSION?
Absolutely not. First of all, there is very little difference between the commissions paid by the various lenders. There is also legislation in our industry called the National Consumer Credit Protection Act (or NCCP), that is designed to protect consumers and ensure ethical and professional standards in the finance industry. We tell you upfront what commission we will be getting from the lender. Our job, our only job, is to find a competitive loan for your needs and objectives.
ISN’T IT MORE EXPENSIVE TO USE A BROKER?
Some brokers charge a fee for their service which they must disclose to you up-front before you engage their services. However, the costs of the loan are the same. These costs depend on the loan and lender you choose. If you want to save on loan costs, just tell us. We can locate loan products from the lenders with the lowest fees and charges.
HOW MUCH CAN I BORROW?
There are specific factors that need to be considered when determining how much a customer can borrow, such as income, employment position, savings, current living expenses and any liabilities. Our borrowing calculator can give you a rough idea of how much you may be able to borrow. For a more accurate assessment, please give us a call and we can go into your options and discuss your circumstances in more detail.
SHOULD I GO FIXED OR VARIABLE?
A finance broker will recommend a product based on what you say is most important to you – for example, “pay my loan off quickly” or “guaranteed repayments” or “low cost”. We do however, live by the following; “if you want flexibility, take a variable rate loan. If you want budget certainty, take a fixed rate loan. If you want both, then do a split loan.”
I AM NOT IN YOUR AREA, CAN WE STILL WORK TOGETHER?
Sure thing! We are mobile brokers, so we can come to you! We offer face to face, phone and Skype appointments. We understand how busy life can be, so after hours and weekend appointments are also available, subject to availability.
WHO SETS INTEREST RATES?
Finance brokers do not set rates. The Reserve Bank of Australia meet to determine the official cash rate for the country. The lenders then use this information to set their own rates. Lenders also adjust their rates according to their costs and other economic considerations.
WHY SHOULD I USE A MORTGAGE BROKER IF I CAN GO WITH A BANK?
Lenders will only sell you their own products. Each bank (or lender) has a variety of loan products on offer – low doc, package loans, loans with re-draw facilities, plant and equipment loans, fixed rate loans, interest only, interested in advance, variable, introductory variable… and so on. The issue you face as a consumer is ‘which loan is right for me?’ And that is where your finance broker becomes an invaluable resource! If you go direct to the bank, you will only be offered the loan options available through that one lender. As your finance broker, we do all the leg work to find the right loan for your needs. We are across many lenders and all of their loan products, and our sole purpose is to find a suitable loan to match your personal financial circumstances and goals.
HOW MANY LENDERS DO WE DEAL WITH?
We compare over 45 lenders! No point in going to a finance broker that recommends products from only two or three lenders – you could compare far more products than that by yourself, quickly and easily.
WHAT WILL MY REFINANCING COSTS BE?
Refinancing costs (for example, a loan application fee, a property valuation fee, lenders’ mortgage insurance) are separate to the payment that the broker receives – and these refinancing costs DO come out of your own pocket! It’s important to ensure that the costs associated with switching are not going to outweigh the benefits.