First check their website
Before you even meet a broker, start with their company website. Make sure they have one! Is the website clear, with good tangible information – not just lots of cheap loan offers and sales pitches.
Check them out on the phone
When they call to make the appointment, make sure you feel comfortable with them. They will be intent on making an appointment to come and see you which is fine, but take the time to start checking them out then and there – with a couple of questions like:
- What is your experience?
- Who are your previous customers? (Do they sound similar to you?)
- What other kinds of loans have you done?
Consider if their answers are clear and straightforward. Do they sound knowledgable and genuinely interested in your personal circumstances? Do you like their style?
When they come to visit, some points to look out for:
Take the time to understand you
The right broker will take the time to really understand your entire finance situation, both now and into the future. They should have a broad range of knowledge of all kinds of people – professionals, investors, business people including a working knowledge of self-employed persons and the complex structures sometimes put in place by their accountants.
If you are a first home buyer, they should know of the entitlements.
Knowledge of lender products
They should have a good working knowledge of their lender panel’s offerings for all financial circumstances and they should thoroughly understand their lender fees, including loan set up and exit, mortgage stamping, statutory fees.
Look for brokers who have a full product suite including car and equipment loans, personal loans and commercial loans. They should be a “one stop shop”.
Specialised software
Most good brokers these days use specialised software to access all the loans on offer from their panel of lenders, and they should be happy to work through a number of options with you. Believe it or not, there are literally hundreds of loan products in the market today and changes can occur daily, so it really does require the assistance of technology to analyse all the options effectively.
Do they speak plain English?
Most good brokers should be able to explain the most complex offer in plain English. They should have a clear ability to ‘structure’ loans to suit your specific situations. An example may be that your circumstance might best suit a combined introduction rate loan with a professional package. Alternatively you might suit a fixed rate short term loan and with a review booked in a year to potentially switch to another product.
The service should be free and outstanding
You generally do not pay a mortgage broker for the service of finding a domestic home loan, so make sure they aren’t charging you a fee. This should also include an ongoing review process.
You are entitled to great customer service before and after your loan has settled. While you are waiting for lending approval, the broker should keep you informed and get back to you in a timely manner.
Are they known in the business community?
Are they well-networked and known within their business community – amongst real estate agents, lawyers and accountants? Who do they know and who knows them?
The finance market is very competitive. There are literally thousands of options to choose from, so always talk to your broker before making a final decision.
