Good mortgage brokers will work with their customers on a much wider level than just helping them obtain a finance approval to satisfy their immediate needs.
They keep a relationship that’s more akin to a partnership than a one-off transactional approach.
They will act as an ongoing finance partner, helping to continuously review and evaluate their customers' position to ensure that they remain on track to achieve their goals. As time passes, goals may change as do markets and lenders' products and policies.
A good way to think about your mortgage broker is having your own personal banker on call to help manage your finances as circumstances change.
Gone are the days when it was simple to compare lenders (interest rates, loan products, features and benefits). It’s now much more complex to compare the options and determine which may best assist you in achieving your goals. This has become even more complex in recent times when lenders are responding to changes in regulatory requirements. As to be expected, these responses are appropriate for each of the individual lender’s situation. This creates multiple changes across the industry. Having someone by your side who understands these changes and has access to a choice of lenders is important.
Loan structures offered by the banks are always changing — like what the market has just experienced with interest-only and investment lending changes.
A mortgage broker is well versed on these differences and can make a real difference in navigating the most appropriate finance pathway.
Applying for a home loan isn’t something that people do on a regular basis. Therefore, most customers may not understand the ins and outs of the process. Having a mortgage professional alongside to help guide you through the process is invaluable.
Experienced mortgage brokers provide real value in identifying the most appropriate loan structure to suit customer needs and objectives.
Most mortgage brokers are flexible in their availability, allowing the ultimate convenience to the customer in terms of timing and location to suit their lifestyle.
Some situations are more complex than others. It may be an investor with multiple properties, someone who may have financial challenges in the past (credit defaults), unusual employment structures, etc. Additional complexity comes in many forms. These situations are where a mortgage broker can add real value. Having access to a variety of lenders, all with differing products and policies, provides the best opportunity to identify a solution appropriate to the circumstances.
Once simple situations can change into more complex ones as markets themselves change. A great example of this is the recent changes experienced with lending for investment purposes and interest-only loans.
Real estate markets are cyclical. These cycles, whether at the top or the bottom, drive consumer behaviour. In many cases it’s quite reactionary. It’s important not to act hastily and stick to a well thought-out strategy to drive decisions. A mortgage broker that understands your goals and aspirations can assist in helping to provide guidance through these times. It may be as simple as providing a product recommendation that offers flexibility during a period of uncertainty.
Personalised, professional service
A good mortgage broker will take the time to understand their customer’s personal situation and requirements, and then match that with the most appropriate lending solution.
Mortgage brokers are licensed and regulated, with support from the key industry associations such MFAA and the FBAA.
Mortgage brokers have to maintain professional standards via ongoing learning and education — like seminars from lender partners through to economists and market commentators — to ensure they stay ahead of the curve in all facets of the marketplace.
Don Crellin is the managing director of Resolve Finance.
After completing a double major in banking and finance at Curtin University, Don has been an executive manager for broker distribution at ANZ and an experienced finance executive in both Australia and New Zealand mortgage markets.
Resolve Finance has been operating within WA and Victoria for 20 years and is owned by Dale Alcock, owner of the ABN Group of Companies
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