The mortgage broking industry has seen an increase in new mortgage brokers coming from a mix of backgrounds. Many of us have a banking and finance background while others are making their first entry into the finance industry and see mortgage broking as a good business opportunity.  

Dealing with banks and the maze of loan products can be a challenge even for us with a banking background. Mortgage brokers once just had a loan approved and then the lender took over the clients’ needs. However in this era of a profit driven finance industry as against service driven, we as mortgage brokers are finding that our services are needed on a continuing basis to assist our clients. This is a welcome development for us as mortgage brokers as we are keen to provide good on-going service to our clients.  

A mortgage broker needs to have a wide knowledge of lenders and home loan products to assist their customers in selecting the home loan that best suits their individual needs. Interest rates and fees are naturally always at the top of the list. A homebuyer’s existing bank may not have the best interest rate and lowest fees. This is where the mortgage broker can assist the homebuyer in offering a good range of lenders and loan products. Fees range from application or loan establishment fees, settlement fees, document preparation fees, valuation fees, ongoing monthly or annual fees or exit fees for early repayment of the loan. Interest rates can be grouped into three areas standard variable, basic variable and fixed rates. A good mortgage broker will have a wide knowledge of interest rates, fees and features of the many home loan products to offer their customers.  

A homebuyer seeking the services of a mortgage broker should ensure they are dealing with someone with finance experience, a good track record and good knowledge of the home loan market. The mortgage broker should have professional indemnity insurance and be a registered business.

It is important for a homebuyer to be confident that the mortgage broker is operating independently of other considerations and in the best interests of the homebuyer. The mortgage broker should be working to provide the home loan that best suits the needs of their clients.