Working With A Broker
Simply put, a mortgage broker’s job is to find you the right home loan for your situation and make sure that you continue to have the right loan as your goals and situation change over time.
What Makes Us Different
Puzzle Box
Banks
Our Code of Ethics
I’m serious about the commitment I make to my customers.
Transparency
We do all that is possible to ensure our customers are fully informed about why we make the loan recommendations we do, and how we get paid.
Governance and culture
We will always act in accordance with applicable laws and cooperate with any regulatory bodies. We see our role as constantly adapting, leading and shaping best practice in the industry.
Manage conflicts of interest
Conflicts can happen from time-to-time. When any conflict of interest exists, we will disclose them to our customer and always give priority to their needs.
Committed professionals
To deliver outstanding results for you, we invest in ourselves and our business. You can have confidence we maintain, develop and apply a high level of knowledge and skills to meet all required industry standards and qualifications.
Quality
We will do everything possible to ensure records of clients are retained, maintained and kept in a form that is complete, accurate and safe.
Access over 60 lenders in one place.
Do I have to pay to use a broker?
There are a lot of misconceptions that mortgage brokers charge hefty fees. Generally, this is not the case. Typically a mortgage broker will be paid by the lender (i.e. no additional cost to you) in the following way:
Mortgage brokers are paid an upfront commission and a trail payment:
- UPFRONT PAYMENT PAID TO ME BY THE LENDER, NOT BY YOU. A one-off payment called an upfront commission is usually between 0.65% to 0.7% of the loan amount (+gst). We do all the legwork to get your loan approved.
- TRAIL PAYMENT PAID TO ME BY THE LENDER, NOT BY YOU. ‘trail’ or ongoing commission is usually 0.15% p.a., based on the balance of your loan. We’ll be in regular contact with you to check in on your situation and make sure your loan continues to work hard for you, your changing situation and goals.
How that plays out
Let’s say you choose to take out a $500,000 loan with Bank ABC.
The broker will be paid:
- An upfront commission of $3,250 (based on a 0.65% upfront payment rate)
- A trail payment of:
- $750 in the first year with a loan balance of $500,000
- $675 in the second year if your loan balance was $450,000
- $600 in the third year if your loan balance was $400,000
The trail payment will continue until you pay off your loan or your loan is changed. It will also cease if your loan ever enters in to default or arrears.
Broker vs. Bank
Let us say this loudly, loyalty doesn’t necessarily pay anymore. Not with lenders (banks) anyway. They’re busy acquiring new clients, delivering dividends to shareholders… and they know that we Aussies like to stick with the brands we know.
Banks can be guilty of taking their current clients for granted. You may have a long term savings account with a bank but that doesn’t guarantee you a great home loan.
Loyalty is a characteristic we value but when it comes to home loans it could end up costing you more in repayments than is necessary. That’s when you’ve got to question the value of asking your bank, directly, for a loan.
Often customers who have been with the same bank for a while can be easily swayed by the offers put right in front of them, tempted to go with the first one they see. After all, with the busy lives we all lead, it’s easy to just head to the bank and pick the first product the bank suggests, isn’t it?
These days, if you’re looking to find the right deal, with suitable inclusions and terms, and would like to save as much money as you can, this is where a mortgage broker – like us – can be worth their weight in gold to you. Look, you might even end up with your current bank, in the process, but boy will we make them work hard for you.
10 reasons you’ll love a broker more than you love your bank...
- Since January 1st 2020, the Best Interests Duty (BID) only applies to brokers, not banks. This means you’ll have a professional who is legally obligated to work and act in your best interests – and no one else’s.
- You get someone who works for you. Bankers work for their shareholders.
- You’ll benefit from a comparison of over 60 banks and lenders who offer hundreds of loans and products.
- You’ll have someone with you for the long haul, regularly checking in on your loan to ensure it aligns with your goals.
- You’ll have someone fighting for the fittest rate on the market for you so that your loan matches your needs and goals, not the first product on the shelf.
- You can contact me at any time, not just during the restricted working hours of a bank.
- You’ll have a professional advising on rates, repayments, incentives and contracts.
- From the first Fact Find to the final repayment, your broker is with you all the way.
- You won’t be left alone to negotiate with bankers, agents, conveyancers, accountants…
- Oh, and did I mention that having a broker comes at no cost to you?
I’ll search high and low, across thousands of products, all the best known and emerging banks and lenders to find your loan. I’m a part of a family- owned company, I genuinely want what’s right for you.
1There may be occasions where you may be charged a fee by your broker.
2Your broker is able to assess each lender’s approval times and identify those that can provide approval quickly, however this is subject to change and can vary significantly based on how complex is your loan application and how quickly you’re able to provide the information we need.
3Not all lenders are available to all brokers. The exact details of the lenders your broker has access to is disclosed within the Credit Guide your broker gives to you when providing credit assistance or is available upon request.
4The way in which your broker will stay in touch with you will differ, however typically this will be via email. In addition you will be able to contact them for guidance as required. You are able to opt out of these communications at any stage.