A mortgage broker is an intermediary between the borrower and the lender who negotiates the loan on your behalf.
The mortgage broker does all the hard work of researching and comparing hundreds of products for you. After researching the best option for you a broker will recommend a product and once you have selected a product the broker will help you prepare the loan application. From loan application to settlement a broker will support you
throughout the process.
Generally, a broker will not charge you for their service as they are paid a commission by the lender. However, in some cases where the broker does an extraordinary extra amount of extra work, or when no commission is payable by the lender, you may negotiate a payment amount with the broker.
Why use a mortgage broker?
There are a number of reasons for using a broker, but the main reason is a broker will make your life easier.
Firstly, brokers shop around for you. Using their skills, experience and specialist software a broker will do the hard yards for you, saving you time and money.
They also walk you through the entire process and will be with you for years to come, unlike your local branch manager, brokers will not move on, but continue to support your financial needs.
Every bank has different criteria and brokers have to know them all, giving you an almost 100% chance of success with your loan application.