- Improtant to chosse a broker who is a team worker
- The right broker should also communicate with you clearly
- Of course, there is no obligation to use a broker
In his latest article for The Property Tribune, solicitor Jules Lewin provides advice on how to select a mortgage broker from the perspective of a settlement agent.
Firstly, check that your broker is registered with ASIC, and choose one that is experienced with your type of matter.
Also, choose someone who is a team worker.
Ensure your broker agrees to keep you updated. Finance is an essential part of any property transaction so you need a team worker who will work with you and your settlement agent/solicitor to enable settlement to happen on due date.
Failure to do so may result in you paying penalties on your purchase price.
I have worked with brokers over the years. I have seen the stress caused when broker does not do the right thing for their client.
Examples are not keeping the client updated on progress of their loan/not query progress with the bank/ delaying the application process (not lodging the application immediately), not applying for the first homebuyers grant (where applicable) or providing documents required by the bank to process the loan. These are actual examples of the type of issues that arise.
With more complex transactions (commercial properties e.g. self-managed super funds/divorces or separations/business purchases), it is prudent to ask your broker how much time is needed before making an offer.
This will avoid the necessity of asking for an extension as more time is needed. Ask whether they have experience dealing with more complex types of matters like these.
There is no obligation for you to use a broker. You can go direct to your bank, but a broker may be able to find a better rate by looking for a more suitable lender for your needs.
Brokers get paid by the bank which grants the mortgage and the broker also get a trail for the life of the loan. This does not affect the amount of the loan.
Shop around there are plenty, ask friends and colleagues and ask questions before you engage one. The wrong choice may lead to you not getting finance on due date and losing your dream property.
Avoid the stress – seek your own advice.