Choosing the RIGHT MORTGAGE BROKER for you!

Author: Harry Pontikis

It wasn't so long ago, that when you wanted to buy a house, you simply put on your best suit and went to see your local bank manager and accepted whatever loan he was prepared to offer you. It may not have been the best loan, or the cheapest, but it was certainly a straightforward process.

These days with new lenders and new products popping up almost every day, there are a huge range of loans, offers and specials on the market. There is certainly a much greater chance that the right loan for you is out there - the biggest challenge, is finding it!

This is where the finance broker comes in. Instead of you going from one lender to another, making endless phone calls, researching on the internet and sifting through the endless amount of industry jargon, a finance broker can do it all for you. If you choose the go-it-alone route, you might be lucky to compare three or four different products. Brokers can compare hundreds!

A Home Loan broker will also help you understand the various deals that are on offer, explaining all the features and details that might make a big difference to your repayments. And what is more, your broker will lodge your application and chase it through with the lender - so you don't have to. Your broker is a single point of contact throughout the entire process and has a whole processing team supporting them.

How do I recognise a good one from the rest? - The mortgage broker you choose should offer a free service as their commissions are paid by the banks.*

- They should be Members of the Mortgage Industry Association of Australia (MIAA) as membership is offered only to brokers who have undergone thorough training and maintain high technical and ethical standards.

- The broker should also subscribe to the Credit Ombudsman Scheme which is a voluntary dispute resolution scheme. This means that if there is a dispute between you and your broker, you can take advantage of the independent dispute resolution process.

- Ensuring the broker is also part of a large and reputable Aggregator, ensures they have access to a large range of lenders. One Aggregator (Professional Lenders Association of Australia) also has a minimum industry education and compliance criteria for all their members.

- The reputation of the broker is essential to using them. Ask friends, your family and business contacts you have, to recommend brokers they have used and are happy with.

* If you have complex commercial requirements, or ask the broker to use a lender which does not pay commission, you may expect to be charged a small brokerage fee

Where do I find a good mortgage broker?

Choosing a mortgage broker is like selecting any professional - you need to find one who is experienced and whom you can trust. Getting their details from a friend, a family member, an Association you belong to or even your employer is often a good way to start.

Checklist for choosing a broker: YES or NO - A member of the MIAA - A member of a large Aggregator (eg. PLAN or AFG) - Part of a reputable company network with head office support and training - A full time finance broker - Happy to disclose fees and commissions - Is aligned to large organisations and provides their staff and members with finance - Covered adequately by Professional Indemnity insurance - Pays its Lending Consultants the same rate - independent of which lender or loan you choose.

Some questions to ask:

- How many banks and financial institutions can they offer?

- Do they have specialist software to compare loan products?

- Do they have electronic lodgement capabilities with the lenders?

- Does the broker undertake ongoing professional training?

- What is their organisation's customer charter or values?

- What privacy guidelines do they adhere to and what happens to your personal information?

About the author: Harry Pontikis is the Director of Chocolate Homeloans and has a lifetime of experience in delighting people with his honesty, integrity and professionalism. Harry leads a team of 48 experienced finance brokers who specialise in helping people realise their dreams through the purchase of their first home or investment properties. http://www.chocolatefinance.com.au