FAQs

FAQs

Frequently Asked Questions

What does a mortgage broker do?

Mortgage brokers are professionals in the home loan industry. We work with you to determine your borrowing needs and how much you can borrow. Brokers, like us, help to ensure that you don’t take out a loan that you can’t afford.

Professional mortgage brokers focus on loans. If you have a toothache, you go to the dentist, not a florist. If your car is broken, you take it to a mechanic, not a librarian. You go to someone trained to help you with your specific need. It’s the same when you need a loan. Why spend hours of your precious time waiting in queues at banks, or researching online, when we can take all of the hassle out of it for you? You’ll be rewarded with expert advice and a tailored solution picked from a wide range of lenders to ensure that you get a great deal and most importantly, that it suits your needs.

Do you charge a fee for your service?

Some mortgage brokers charge a fee and some don’t.  We are paid a commission by the banks when you take out a loan through us, so we choose not to charge a fee to my clients.  This means that you’re receiving expert personalised loan solutions and concierge service through to settlement, beyond settlement for the life of the loan, at no additional cost to you!  Why would you go direct to one bank?!

Does it cost more to use a mortgage broker that go to a bank?

This is an absolute myth and not true at all. Brokers get paid commission by the bank for bringing new business to them, this does not impact your rate or level of service.  In fact, depending on your circumstances, we may be able to offer a better rate than advertised!

Don’t you just recommend the lender who pays you the most commission?

Absolutely not! Our priority is always putting your personal circumstances first. If one bank pays a higher commission but don’t offer the solution you need, there is no way that we’d be recommending them for your needs.
There is legislation in our industry, called the National Consumer Credit Protection Act (or NCCP), that is designed to protect consumers and ensure ethical and professional standards in the finance industry. We tell you upfront what commission we will be getting from the bank. Our job is to find the best loan for your needs and serviceability.

How much can I borrow?

This is dependent on a range of factors, including how much you have saved for a deposit and what you current expenses are. Give us a call and we can go into your options in more detail, or check out the loan calculator page of our site!

Should I go fixed or variable?

Without knowing your personal circumstances, we wouldn’t be responsible if we gave you a generic answer to this on my website!

We listen to your needs and a thorough financial review, before recommending a product based on what you say is most important to you – for example, “pay my loan off quickly” or “guaranteed repayments”.  It may be a combination of factors and therefore we cannot determine which loan is right for you without a full understanding of your financial circumstances.

I am not in your area, can we still work together?

Sure thing! We are mobile brokers so we can come to you!

Which lenders do you deal with?

We are Connective Brokers. This means that we have access to over 40 lenders – these include the major banks, second tier lenders and credit unions. Each of these lenders offer their own suite of products and we can tailor a solution from the lender of your choice.

Who sets interest rates?

The Reserve Bank of Australia meet on the first Tuesday every month to determine the official cash rate for the country. The lenders then use this information to set their own rates. Mortgage brokers do not set rates.

Why should I use a mortgage broker if I can go with a bank?

When we talk about a ‘loan product’, we are referring to the thousands of options that are currently available for you for your loan. Each bank (or lender) has loads of different loan options – low doc, package loans, re-draw facilities, plant and equipment loans, fixed, interest only, interested in advance, variable, introductory variable… the issues you face as a consumer is ‘which loan is right for me?’ And that is where a mortgage broker comes in. If you go direct to the bank, you will only be offered the loan options available through that one lender. As your mortgage broker, I do all the leg work for you. I spend countless hours each month to stay across many lenders and all of their loan products and my main purpose is to find the right loan for your needs. Your full financial situation would need to be reviewed prior to acceptance of any product or offer.