Why do I need a mortgage broker in Canberra?
The Bush Capital of Australia, Canberra, houses some of the most chased-after properties.
With attention-grabbing properties, however, comes competition among buyers.
To purchase a property in Canberra with a home loan, you need to undergo a rigorous home loan process.
You apply with a bank, and you need to pass their rigid standards.
Not to forget, for a person with no knowledge of the mortgage market, finding the perfect lender might take several months (and rejections)!
So, there is a high chance of someone else sweeping away your dream property if you don’t move fast.
Also, worst-case scenario, you signed the contract of sale before applying for the home loan. Now your home loan got declined by the lender, the cooling-off period expired, and you lost several thousand in deposit for a house you will not get to call yours!
Had you had a proper mortgage broker by your side through the process, you would have faced a different outcome. You would have swiftly bagged the home loan and, in turn, the property.
Are all mortgage brokers the same?
No, all mortgage brokers are not the same.
However, the key differentiating factors across mortgage brokers have helped us group them into three subclasses: the good, the bad, and the niche-specific mortgage brokers.
Good mortgage broker
A good mortgage broker always stands out amongst others.
Below is a list of specifics that act as a tell for a good mortgage broker in Canberra:
- They have a credit licence of their own.
- They have an FBAA or MFAA membership.
- They have experience of more than five years of mortgage broking in Canberra.
- They have accreditation with more than ten lenders and work with at least eight a year.
- Their customer reviews from within and outside Canberra are excellent; they are good with customer service.
- They diligently follow the best interest duty that came into effect in 2021.
- Their settlement volume is not less than $50 million a year.
- They help you through each step of your home loan process.
- They provide logical reasons for why they linked you up to a specific lender.
- They get you the best interest rate and home loan package available to you.
- They get a mention from some of the top local mortgage news sites quite frequently.
- They are likely to have won some awards or recognitions as a broker.
- They do not have a wide lending panel. Clients with unconventional cases might not get the best deals, given minimal options.
- They provide delayed customer service from the start.
- They are not thorough with your application before submission. Suppose the broker is not asking you a lot of questions regarding your income and expenditure. In such a case, it means they are not prepared to defend your application if credit assessors question specific details.
- They do not attempt to get you any discounts and concessions. Getting you a lower Loan-to-Value Ratio (LVR), interest rate, deposit, and home loan package, regardless of whether you can afford to make standard payments, should be your broker’s priority. If they do not get you any discounts and concessions, they are not doing it right!
- They overpromise. Sometimes, a borrower clearly cannot qualify for a home loan given their current financial situation. A bad broker goes through with the application regardless, and you get rejected. It leaves a credit enquiry on your credit file that can be a questioning factor for any significant financial activity in your future.
- We have a panel of 50+ lenders. Our wide panel consists of the traditional bank (including the Big Four), non-bank, specialist, wholesale and online lenders. We link you with the type of lender that best suits your case.
- We are a team of experts. All our brokers are experts in the mortgage industry who have impressive career histories. They are directly backed by our expert credit analysts and loan-processing specialists, who analyse, assess, and process your mortgage application. Compared with other mortgage brokers, we have more specialists and experts in all our departments.
- We have a separate customer relationship team and customer success team. The customer relationship team handles current enquiries and the customer success team follows up with previous clients. Our team ensures you are content throughout your home loan journey.
- We have a comprehensive website with all the information you need! With more than 300 articles relevant to home loans, our website answers all your queries. We also review popular mortgage lenders in Australia, regardless of whether they are on our lender panel.
Bad mortgage broker
A major tell of a bad broker is them continuing to operate under the licence of another broker for several years.
Other hints that a broker is not good quality:
Niche-specific mortgage broker
All good brokers have a specialty of their own. They have their expertise set in one or more niches that keep their settlement rate high.
It is practically impossible for a single broker to be the best in all home loan categories.
A broker best at Low Doc, No Doc and renovation loans might not be as good with company home loans. Similarly, a broker good with company home loans and guarantor loans may not be good with Low Doc or No Doc loans. Thus, you must pick a broker wisely.
Now you might be questioning, If I do not have enough time to even decide on a lender on my own, how am I to figure out what niche I fit in and find a broker accordingly?
Well, this is the exact question that reasons why mortgage broking firms are better than independent brokers.
If you inquire with a mortgage broking firm like Home Loan Experts, with multiple experts and specialist brokers on board, we assign you a broker that best suits your case. But if you search for independent brokers, they might not work well for your case even if they are good in other areas.
This is why mortgage broking firms are more effective for someone who needs a niche-specific broker.
How much does it cost to use a mortgage broker in Canberra?
Often, mortgage brokers in Canberra charge their clients an up-front commission ranging from 4% to a little over 6%. The rates can vary, broker to broker.
A few mortgage brokers do not charge any broker fees for certain types of home loans; for example, we do not charge our clients any broker fee for most home and investment loans.
Why use us as your mortgage broker in Canberra?
Home Loan Experts is one of the top brokers providing services across Australia.
Our brokers have exceptional settlement rates in Canberra.
In 2020, we were able to total an average of $75 million-plus in settlements on a monthly basis. A large percentage of this was from home loans in Canberra.
Below are some points that differentiate us from other brokers:
Get a free no-obligation assessment!
For a free no-obligation assessment from one of the best home loan brokers in Canberra, give us a call on 1300 889 743 or fill in our online assessment form.