10 Questions to Ask Your Mortgage Broker

When buying a property, one of the first things you’ll do is talk to your mortgage broker. They’ll walk you through the entire buying process and will help you know what to expect. But how do you choose a mortgage broker in the first place? These are the 10 questions you should be asking of your mortgage broker.   

What sort of Clients do you specialise in? 

While most brokers focus on average “vanilla” clients there are some who focus on other specific types of cases. These could be investors or borrowers with credit problems. These specialist brokers may be perfect for some clients with unique needs if it’s a little outside the norm. 

It is important to know what the broker is used to dealing with so that you can feel most comfortable and know that you’re in good hands. By asking what clients they specialise in you will get an idea of whether the broker is right for your particular circumstances.  

Which lenders are on your panel? 

Brokers tend to have between 10 to 40 lenders on their panel. These usually include smaller financial institutions and niche lenders, all the way up to the Big 4 banks.

By ensuring their panel contains lenders you are comfortable and familiar with, brokers accredited with more lenders will enable a harmonious relationship from the beginning.  

Why should I choose you rather than another broker? 

This is a challenging question for any broker that isn’t confident in their capabilities. You want a broker who you know will leave you in safe hands. This is why you should ask this question.

It is important that you don’t let them get away with vague, easy answers like: “Because I provide the best service” or “Because I am the best in the industry”.

Press for further detail. If they cannot truly explain why you should choose them over another broker, are they really worth your time? 

How much handholding will you do during the buying process? 

This is an important question, especially for first-home buyers. Getting your first home is stressful, no matter which way you cut it. You want to know that you will be looked after through the whole process.

Some brokers will closely guide you through the process while others will leave you to figure it out yourself. Sometimes that can be useful, but it is important to consider what you want.  

What documents will I need to provide to obtain my loan? 

You want to know exactly what documents you will need to provide as soon as possible. This will simply help the entire process go smoothly. Generally, you will need identification, proof of income, contact details, and more. In most instances, brokers will then need to fill in a fact find with you, to capture any additional information they don’t already have. It is best to sort out what exactly you need as soon as possible. 

What impact will my credit card limits have on my borrowing capacity? 

Do you have credit cards? If you do make sure you ask your broker how this will affect your borrowing capacity. They should offer you good advice based on your situation, helping advise you about any credit card-related issues.

As banks are crunching down on how many loans they accept, and who they provide them to, it is important to ask. That way you can be put in the best position possible.  

What are the pros and cons of each of these loans? 

Find as much information about each of the loans presented as possible. Each will come with its own pros and cons that could make or break the deal for you. Ask your broker to list out the pros and cons of each loan so that you are in the best position possible when it comes to making a decision.  

Can I make additional repayments on these loans? 

Some loans do not let you make extra payments. They may even charge you if you want to get out of your loan early. If you have any plans to make extra payments or to get out of your loan early make sure that you ask your broker this question.  

Also, ask your broker about offset accounts. An offset account can be useful in helping you reduce your interest repayments. Some loans do not include this, so ask your broker.  

How long will it take to process the loan? 

You don’t want to miss out on the perfect property. So, ensure that you ask your broker how long the loan will take to process. If you don’t get your loan approved in time, the seller is able to pull out of their contract with you and offer the property to another buyer. 

Your broker should be able to provide you with a good estimate, giving you peace of mind on your offer for that dream home.  

Am I eventually able to fix my interest rate? 

There are many benefits to both a fixed interest rate and a variable interest rate, either may suit you depending on your situation. If you see yourself transitioning into a fixed-rate loan in the future, ensure that the home loan you are taking will allow you to do that.

Otherwise, you may have to refinance your loan in the future to make this happen. Ask your broker, they can help you find the best option. 

If you are looking for a mortgage broker that you know you can trust, contact LINK Advance today.