Using the services of an accredited and licensed Mortgage Broker can save you time, stress and potentially thousands of dollars, not to mention, informed borrowers make better decisions! However, there are many misconceptions about Mortgage Brokers and we wish to bust those myths wide open!
BROKERS CHARGE A FEE
A common misconception is that borrowers will pay extra fees and charges when getting a home loan through a broker. The truth is that we do not charge any fees! You will get the same pricing going through us as you would going direct to the banks. The way we get paid is through commissions paid from the banks. The banks give us a share of the profit that they make off you so there are no hidden brokerage charges and the banks do not load up the interest rates on broker introduce loans – the pricing is exactly the same!
BROKERS ARE DODGY
All Astute brokers are required to have accreditation with industry regulator Mortgage and Finance Association of Australia (MFAA). The mortgage broking industry is regulated by ASIC which means all brokers have compliance requirements and are subject to regular audits. Astute Financial has a full time internal compliance manager who oversees our statutory obligations and are considered to be a market leader in this area. Astute Financial have an Australian Credit Licence and all of our brokers are authorised representatives of that licence.
BROKERS HAVE ALLIANCES WITH INDIVIDUAL BANKS
Astute Financial are the only independent aggregator who are not owned or partially owned by one of the banks. This means we are completely impartial and do not have allegiances to any one bank over another. Our job is to find a solution to each individual lending need. Each customer’s situation is different from the next so we will never adopt a one size fits all approach.
BROKERS ARE A LAST RESORT
Some people think you would only use a broker if you have tried all the banks and cant get approved. The opposite is actually true – by going to a broker first you have the ability to shop around prior to submitting any applications. Our advantage is in our ability to complete an in house assessment of your application and then recommending a bank based on our prior knowledge of all the banks different policies. This actually means you have a better chance of getting approved first go.
BROKERS LODGE SEVERAL APPLICATIONS TO A NUMBER OF BANKS
In the industry this is known as “hitting and hoping”. The practice of hitting and hoping has been stamped out of the industry long ago through regulation and compliance. As mentioned above, we do an in house assessment and make a recommendation based on applied knowledge of the banks on our panel. We never lodge applications to two different banks at the same time.
If you are considering the use of a Mortgage Broker don’t hesitate to give one of our professional Mortgage Brokers at Astute North Queensland an ‘obligation free’ call to discuss your lending options P: 1300 880 767
Author: Jacqui Webb, Astute North QLD, Atherton