Before you start the search for your new dream home you need to make sure you have the finance in place to make an offer. Speaking to a mortgage broker who can help you through the intricate lending process from start to finish is one way to do it.

Here are five common facts to help you understand what mortgage brokers do:

1. A mortgage broker is someone who acts on your behalf and is the middleman between you and your potential lenders. The broker’s job is to help guide you through the daunting process of applying for a home loan and does all the legwork for you. Working with a broker allows you to compare hundreds of home loans and keep up to date with what’s happening in the property market. They’re there to help look after your finance needs long term and not just for the home loan.

2. Their service is at no cost to you. Brokers are paid commission by the lender once your loan has settled. All commissions are disclosed upfront, so you’re aware of what the broker gets paid. Whilst some lender commission rates vary from others, the difference generally is less than a cup of coffee a day.

3. Mortgage brokers are licensed financial professionals who are the experts in the field. They know all the products in the market and are on top of the latest market trends. They also know which lenders will approve your loan and help negotiate the best interest rate on your behalf. They will work closely with you to understand your needs and recommend the right products to suit your needs. It’s a long term relationship and they are with you throughout the whole process, not just for your first loan. Whether it’s upgrading, downgrading or buying your first investment property, your mortgage broker is here to help.

4. To choose the right mortgage broker, it’s always wise to check if they are licensed or operating as an authorised credit representative. It’s also beneficial to ask if they are a member of an industry association such as the MFAA and FBAA. To get a better understanding of how your broker works, make sure you ask them questions and get to know them better. When they’re giving you their recommendations, make sure you ask them how they got there so that you’re both on the same page.

No, as mentioned, brokers do not charge a fee and must disclose commissions upfront at the start of the process. If there are any fees on the loan, then as part of the loan recommendation process, these must be stated by the broker. Don’t be afraid to ask questions as there should be no surprises during this journey.

Next steps

Like finding your perfect home, finding a good broker is just as important. If you don’t have the time, patience or know-how to navigate the lending process on your own, speak to an Oxygen broker and get in touch today.

At Oxygen we have a very simple value proposition – to provide our customers with a higher quality of advice, the most competitive loan, and do it hassle-free.

Find a broker