What is a Financial & Mortgage Broker?
“We Are Here To Serve You”
What is a Financial & Mortgage Broker? Who is it for?
At 1300whatloan we provide an FMB, to ensure you are fully appraised of all the options and structures that are available to you. This service is an ideal first step for clients. It usually takes around two hours, during which time our highly trained Finance & Mortgage Broker will work closely with you to gain an in-depth understanding of exactly how your finances are structured.
What do I get out of a FMB?
The session will:
During this consultation, your specific needs and wants are assessed in line with your proposed asset accumulation or business plan. Any changes to existing or recommendation provided on will include a cost versus benefit analysis.
This will allow you to be fully informed, and able to make a decision on the most appropriate course of action.
About Costs
1300What Loan receives a commission from the lender, this means our personal service provided to you at no additional cost. 1300WhatLoan Services is committed to helping you achieve these goals.
We look forward to the opportunity of helping you choose the right loan for you. Call us today and together we can review your current situation and apply the wealth creating steps that will set you on the right path.
At 1300whatloan we provide an FMB, to ensure you are fully appraised of all the options and structures that are available to you. This service is an ideal first step for clients. It usually takes around two hours, during which time our highly trained Finance & Mortgage Broker will work closely with you to gain an in-depth understanding of exactly how your finances are structured.
What do I get out of a FMB?
The session will:
- Identify where you are today from a financial aspect, in particular your debt and equity
- Identify any problems with your current situation.
- Provide possible solutions for any problems.
- Find the right loan the wrong loan or products could you hundreds of dollars extra.
- Show a way to save money with your current situation.
- Calculate your borrowings and repayments
- Explain (LMI) Lenders Mortgage Insurance
- Discuss your insurance needs
- Enable you to create a detailed plan of action for future wealth creation, asset accumulation and asset protection.
- Most Important Answer any of your questions
During this consultation, your specific needs and wants are assessed in line with your proposed asset accumulation or business plan. Any changes to existing or recommendation provided on will include a cost versus benefit analysis.
This will allow you to be fully informed, and able to make a decision on the most appropriate course of action.
About Costs
1300What Loan receives a commission from the lender, this means our personal service provided to you at no additional cost. 1300WhatLoan Services is committed to helping you achieve these goals.
We look forward to the opportunity of helping you choose the right loan for you. Call us today and together we can review your current situation and apply the wealth creating steps that will set you on the right path.
Who is better? The Bank Or The Broker
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6 Reasons to Use a Broker
1. Choice
2. Ease of Use
3. Commitment (of the broker)
4. Rate
5. Product niches
6. The ability to place the hard-to-house home loan
2. Ease of Use
3. Commitment (of the broker)
4. Rate
5. Product niches
6. The ability to place the hard-to-house home loan
Six Reasons to Use a Mortgage Broker
The growth of home loans arranged through mortgage brokers has increased greatly of late – Australia is rapidly catching up on the US and UK in its use of brokers. In fact, around half of all home loans are now arranged by a mortgage broker.
Here are six reasons why people are using brokers, when they could go to their own bank and get a perfectly good deal.
1. Choice
Through a broker, homeowners have access to a much wider range of home loan options than if they went to their local branch. This is because most brokers have access to a panel of around 20 lenders. These lenders range from the Big Four, interstate lenders (such as St George Bank or Adelaide Bank), well known lenders who only go through brokers (AMP & Macquarie) and specialist in-house lenders.
2. Ease of Use
If work commitments make it hard for you to find time to get to a bank for a home loan, a broker could well be the answer. Many brokers are prepared to visit clients at home out-of-hours and weekends.
3. Commitment (of the broker)
Most brokers get paid commissions for arranging a loan. This means that they are committed to sorting out your finance. Your home loan application is more likely to go all the way with a broker than when you approach a relatively junior home loan manager in a branch whose hip pocket is not directly affected whether you are approved or declined.
4. Rate
Good brokers know which banks are hungriest for business. Chances are that, if you went to your branch, you would pretty-much be offered a take-it-or-leave-it deal. Brokers can shop around to get you the best rate and have access to banks’ ‘pricing teams.’ With these teams, brokers can negotiate a sharp rate for you.
5. Product niches
Not all banks are the same. For example, NAB won’t lend of a property which is subject to Company Title and ANZ won’t lend more than 90 per cent of the value of a property if you have not had a credit facility with them for more than six months.
Good brokers know the relative niches of each bank and are able to place customers where they are most likely to get approval.
6. The ability to place the hard-to-house home loan
Lo-Doc loans are still used; often by people who have not filed tax returns or whose credit history is imperfect. There are specialist lenders, such as Pepper and Liberty, who offer competitive products for these clients. These lenders concentrate much of their effort in going through brokers.
The banks are neutral on who brings them the business; it could be a broker who gets paid a commission, or it could be an in-house loan manager who gets paid a salary.
Either way, brokers can access loans that are at least as good as anything from a bank branch. Often they are better than what a branch can offer.
Disclaimer: This article contains general information. Before you make any financial or investment decision you should seek professional advice to take into account your individual objectives, financial situation and individual needs.
The growth of home loans arranged through mortgage brokers has increased greatly of late – Australia is rapidly catching up on the US and UK in its use of brokers. In fact, around half of all home loans are now arranged by a mortgage broker.
Here are six reasons why people are using brokers, when they could go to their own bank and get a perfectly good deal.
1. Choice
Through a broker, homeowners have access to a much wider range of home loan options than if they went to their local branch. This is because most brokers have access to a panel of around 20 lenders. These lenders range from the Big Four, interstate lenders (such as St George Bank or Adelaide Bank), well known lenders who only go through brokers (AMP & Macquarie) and specialist in-house lenders.
2. Ease of Use
If work commitments make it hard for you to find time to get to a bank for a home loan, a broker could well be the answer. Many brokers are prepared to visit clients at home out-of-hours and weekends.
3. Commitment (of the broker)
Most brokers get paid commissions for arranging a loan. This means that they are committed to sorting out your finance. Your home loan application is more likely to go all the way with a broker than when you approach a relatively junior home loan manager in a branch whose hip pocket is not directly affected whether you are approved or declined.
4. Rate
Good brokers know which banks are hungriest for business. Chances are that, if you went to your branch, you would pretty-much be offered a take-it-or-leave-it deal. Brokers can shop around to get you the best rate and have access to banks’ ‘pricing teams.’ With these teams, brokers can negotiate a sharp rate for you.
5. Product niches
Not all banks are the same. For example, NAB won’t lend of a property which is subject to Company Title and ANZ won’t lend more than 90 per cent of the value of a property if you have not had a credit facility with them for more than six months.
Good brokers know the relative niches of each bank and are able to place customers where they are most likely to get approval.
6. The ability to place the hard-to-house home loan
Lo-Doc loans are still used; often by people who have not filed tax returns or whose credit history is imperfect. There are specialist lenders, such as Pepper and Liberty, who offer competitive products for these clients. These lenders concentrate much of their effort in going through brokers.
The banks are neutral on who brings them the business; it could be a broker who gets paid a commission, or it could be an in-house loan manager who gets paid a salary.
Either way, brokers can access loans that are at least as good as anything from a bank branch. Often they are better than what a branch can offer.
Disclaimer: This article contains general information. Before you make any financial or investment decision you should seek professional advice to take into account your individual objectives, financial situation and individual needs.
HOW DO MORTGAGE BROKERS GET PAID?
Click here t Mortgage brokers are generally paid in one of two ways. Firstly, brokers are simply paid by the banks for introducing new business & for doing most of the administrative work that would otherwise have to be done by one of their own staff.
This outsourced approach is very effective and suits all parties. The banks win by getting new business and reducing staff costs. You, the client, win by gaining access to a mortgage broking professional, who has access to many lenders and loan products, and the service of an experienced broker in your corner to assist with all the paperwork and headaches.
And of course, the mortgage broker wins by getting paid by the bank to perform these tasks and services. The second way that more experienced mortgage brokers may get paid is by providing additional services to clients not covered by the banks. This can include structural loan planning, debt reduction strategies, solutions on how to repair a bad credit score, debt default restructuring, budgetary advice, refinance solutions and much more.
Example:.
Upfront commission;
The most common commission received by a broker is known as the upfront commission, which normally amounts to 0.3-0.5% of the total loan value. For instance, for a $900,000 home loan, a 0.3% commission would translate to $2,700 as the broker’s upfront commission.
Trailing commission;
The ongoing or trailing commission is calculated based on the remaining loan amount each year, which is paid to the broker monthly. Although some lenders offer no ongoing commission to brokers, others may offer a trailing commission of 0.1-0.2% based on the outstanding value of the property.o edit.
This outsourced approach is very effective and suits all parties. The banks win by getting new business and reducing staff costs. You, the client, win by gaining access to a mortgage broking professional, who has access to many lenders and loan products, and the service of an experienced broker in your corner to assist with all the paperwork and headaches.
And of course, the mortgage broker wins by getting paid by the bank to perform these tasks and services. The second way that more experienced mortgage brokers may get paid is by providing additional services to clients not covered by the banks. This can include structural loan planning, debt reduction strategies, solutions on how to repair a bad credit score, debt default restructuring, budgetary advice, refinance solutions and much more.
Example:.
Upfront commission;
The most common commission received by a broker is known as the upfront commission, which normally amounts to 0.3-0.5% of the total loan value. For instance, for a $900,000 home loan, a 0.3% commission would translate to $2,700 as the broker’s upfront commission.
Trailing commission;
The ongoing or trailing commission is calculated based on the remaining loan amount each year, which is paid to the broker monthly. Although some lenders offer no ongoing commission to brokers, others may offer a trailing commission of 0.1-0.2% based on the outstanding value of the property.o edit.
WHAT IS LVR ? ( LOAN TO RATIO)
This is possibly best explained with an example. If a property is valued at $500,000 and you apply for a loan for say $400,000 then the value of your loan relative to the value of the property is the L.V.R. In this example, $400,000 (loan) / $500,000 (value) = 80% L.V.R
If using the same example property you only had say a $50,000 deposit (10% of property value) and required a loan of $450,000 (90% of property value) then the L.V.R would be $450,000 (loan) / $500,000 (value) = 90% L.V.R
In general, loans above 80% LVR will attract Lenders Mortgage Insurance or LMI.
If using the same example property you only had say a $50,000 deposit (10% of property value) and required a loan of $450,000 (90% of property value) then the L.V.R would be $450,000 (loan) / $500,000 (value) = 90% L.V.R
In general, loans above 80% LVR will attract Lenders Mortgage Insurance or LMI.
WHAT IS LMI ? (LENDERS MORTGAGE INSURANCE)
Most lenders will happily lend of to 80% of the value of residential property (80% L.V.R) in Australia without the need for Lenders Mortgage Insurance (L.M.I). However, for loan amounts above 80% L.V.R, lenders mortgage insurance (L.M.I) will normally be charged.
Please note, that it is the lender (eg bank) who is the insured party, and not the borrower (you) that is covered by L.M.I.
LMI should not be mistaken for Mortgage Protection Insurance, which helps to pay your mortgage in the event of death, sickness, unemployment or disability.
LMI premiums can vary significantly depending on the lender and the insurer chosen. Given that LMI can often be in the order of thousands or even tens of thousands of dollars it pays to work with an experienced broker.
In some cases, lenders offer the option for borrowers to ‘capitalise’ the L.M.I premium. This means that the premium is added onto the loan amount and the borrower does not have to pay for the L.M.I premium as a ‘lump sum’ cost at the time of purchase. The loan repayments will simply be increased to cover the cost of the L.M.I premium.
Please note, that it is the lender (eg bank) who is the insured party, and not the borrower (you) that is covered by L.M.I.
LMI should not be mistaken for Mortgage Protection Insurance, which helps to pay your mortgage in the event of death, sickness, unemployment or disability.
LMI premiums can vary significantly depending on the lender and the insurer chosen. Given that LMI can often be in the order of thousands or even tens of thousands of dollars it pays to work with an experienced broker.
In some cases, lenders offer the option for borrowers to ‘capitalise’ the L.M.I premium. This means that the premium is added onto the loan amount and the borrower does not have to pay for the L.M.I premium as a ‘lump sum’ cost at the time of purchase. The loan repayments will simply be increased to cover the cost of the L.M.I premium.
CAN I JUST GET A LOAN FROM MY BANK?
Absolutely, you can. And in some cases, that is exactly what we recommend to be done, in most cases, your current bank may not have the most competitive loan, or the loan best suited to your situation.
Now without having a dig at the banks, do you really think they are going to tell you if their competitors have a better or cheaper loan product for you, assuming they even knew what their competition was doing?
Additionally, every bank, or non-bank lender, has their own specific and unique lending policy and criteria and can not operate outside of that. Our mortgage brokers are highly experienced and trained to only choose a product that is right for you & a lender that is likely to approve your loan!
Now without having a dig at the banks, do you really think they are going to tell you if their competitors have a better or cheaper loan product for you, assuming they even knew what their competition was doing?
Additionally, every bank, or non-bank lender, has their own specific and unique lending policy and criteria and can not operate outside of that. Our mortgage brokers are highly experienced and trained to only choose a product that is right for you & a lender that is likely to approve your loan!
WHY AN 1300WHATLOAN BROKER?
1300WHATLOAN commenced operations as a solely operated local finance & Mortgage broker in 2013, we are a boutique Finance & Mortgage Broking business specialised in residential and commercial lending.
At 1300WHATLOAN we use state of the art technology, equipment and resources which enables us in providing a more customised approach in our services to our clients.
We work for you!
We are not employees of any banks, lenders or franchises.
We have extensive knowledge of loan structure and understanding of various lenders' guidelines.
We have an extensive access to over 27 lending institutions available to us, giving us access to hundreds of mortgage finance product options which helps us to cater to our client’s needs. Along with home loans we now also provide lending options for commercial, personal & car loans.
Getting a Homeloan does not need to be a daunting experience. Having us conduct a free client needs analysis It should be seen as an exciting opportunity to discover where you are heading and what options exist to achieve your goals sooner.
Our passion is guiding people through the process of making one of life’s biggest decisions, taking a mortgage.
For us, Mortgage Broking isn't a job; it’s what we love to do. We are driven by seeing excitement and happiness on people’s faces, whether it is first home owners buying their first home, couples or families building, renovating or extending, or investors creating wealth for their future.
We have a unique approach when it comes to dealing with clients. We are very much goal focused and enjoys understanding exactly what each client wants to achieve.'
Why choose us over your local bank? As our client, you can be assured that:
We have access to over 27 lenders and 100`s different loan products.
We will compare and advice which type products would be right for your personal situation and goals.
This is our business, and we are dedicated to helping our clients achieve their goals. And because of that, our reputation is our most important asset. we are not happy just to get a deal done, we want to get the best deal, every time, for every client. That’s the foundation of our business.
At 1300WHATLOAN we use state of the art technology, equipment and resources which enables us in providing a more customised approach in our services to our clients.
We work for you!
We are not employees of any banks, lenders or franchises.
We have extensive knowledge of loan structure and understanding of various lenders' guidelines.
We have an extensive access to over 27 lending institutions available to us, giving us access to hundreds of mortgage finance product options which helps us to cater to our client’s needs. Along with home loans we now also provide lending options for commercial, personal & car loans.
Getting a Homeloan does not need to be a daunting experience. Having us conduct a free client needs analysis It should be seen as an exciting opportunity to discover where you are heading and what options exist to achieve your goals sooner.
Our passion is guiding people through the process of making one of life’s biggest decisions, taking a mortgage.
For us, Mortgage Broking isn't a job; it’s what we love to do. We are driven by seeing excitement and happiness on people’s faces, whether it is first home owners buying their first home, couples or families building, renovating or extending, or investors creating wealth for their future.
We have a unique approach when it comes to dealing with clients. We are very much goal focused and enjoys understanding exactly what each client wants to achieve.'
Why choose us over your local bank? As our client, you can be assured that:
- We won’t treat you like a number.
- We will come to you, even after hours
- We will stay with you for the long run.
- We will treat your loan, your situation, like it was my own.
- You will have our mobile number and can call me 24/7.
- If we promise you something, you can be absolutely sure will deliver.
We have access to over 27 lenders and 100`s different loan products.
We will compare and advice which type products would be right for your personal situation and goals.
This is our business, and we are dedicated to helping our clients achieve their goals. And because of that, our reputation is our most important asset. we are not happy just to get a deal done, we want to get the best deal, every time, for every client. That’s the foundation of our business.
WILL IT COST ME ANYTHING?
An initial discussion to determine your financial goals and objectives does not cost you a cent!
Get in touch with us today to arrange an appointment over the phone or in person.
Get in touch with us today to arrange an appointment over the phone or in person.
WHAT IS THE PROCESS?
Simply contact us or make a booking
Once received, a qualified loan consultant will call to confirm your details.
With your 1300WHATLOAN Mortgage Broker, we will help create a loan plan and finance structure to suit your needs & objectives. We will guide you through every stage of the finance process, all the way through to settlement and beyond.
We will help you complete all the mortgage applications to ensure your loan application the optimum chance of success.
Our experience, and custom mortgage broking software, helps us compare mortgage rates, fees and hidden costs so we can deliver you the best value finance solution for your situation.
Step by step explanation;
Although the process will vary from client to client, a broker will generally undertake the following steps to source an appropriate mortgage solution for you:
Once received, a qualified loan consultant will call to confirm your details.
With your 1300WHATLOAN Mortgage Broker, we will help create a loan plan and finance structure to suit your needs & objectives. We will guide you through every stage of the finance process, all the way through to settlement and beyond.
We will help you complete all the mortgage applications to ensure your loan application the optimum chance of success.
Our experience, and custom mortgage broking software, helps us compare mortgage rates, fees and hidden costs so we can deliver you the best value finance solution for your situation.
Step by step explanation;
Although the process will vary from client to client, a broker will generally undertake the following steps to source an appropriate mortgage solution for you:
- Assess client information. Once you make contact with a mortgage broker and agree to work with them, the broker will gather important information to assess your needs, such as your income, assets, employment history, credit file and liabilities.
- Determine client needs. Once they’ve collected this information, they can determine what kind of home loan and product features will suit your situation. At this stage, the broker may establish the appropriate loan amount, loan-to-value ratio and determine which product type would be ideal for you, such as an investment loan or an owner-occupier loan, depending on your strategy.
- Determine borrowing capacity. Using software to determine your serviceability potential, the broker will also consider factors to estimate your borrowing capacity, such as your type of income (full-time or part-time) and number of dependents.
- Calculate required deposit and loan costs. If you don’t have a 20% deposit available, then the broker will take you through alternative options, such as accessing existing equity in other properties or opting for a guarantor loan. The broker should also discuss and forecast mortgage costs with you, such as application fees, stamp duty, government charges and conveyancing fees.
- Review loan options. Once the broker understands your goals and financial situation, they’ll compare suitable mortgage products and their rates, features, fees and charges to find the most competitive and suitable product for you. The broker will negotiate with lenders on your behalf.
- Apply for pre-approval. After a loan product has been agreed on, the broker will prepare the paperwork and organise pre-approval.
- Finalise the loan. Once an offer is accepted, the broker will assess the application and advise you as soon as the offer is “unconditionally approved”. The broker will then organise a Letter of Offer for you to sign. The broker may also communicate with your solicitor and lender to schedule a settlement date.
- Ongoing support. Throughout the entire process, the broker should provide you with ongoing support and answer any queries that you may have. A broker that goes “above and beyond” will stay in frequent contact with you, raise issues such as landlord or contents insurance that may be required, and remind you of when your first repayment is due.
HOW DOES AN AUSTRALIAN MORTGAGE BROKER WORK?
Mortgage brokers bridge the gap between borrowers and banks, and they have a high level of responsibility when it comes to steering you in the right direction.
WHAT IS A MORTGAGE BROKER?
SERVING AS AN INTERMEDIARY BETWEEN A BORROWER AND A LENDER, MORTGAGE BROKERS ARE LICENSED PROFESSIONALS WHO TYPICALLY HELP CLIENTS FIND A HOME LOAN THAT SUITS THEIR PERSONAL AND FINANCIAL SITUATION. THEY DO THIS BY LEVERAGING THEIR INDUSTRY KNOWLEDGE, RESOURCES AND NETWORKS.
A BROKER WILL RESEARCH, INTERPRET AND NEGOTIATE DIFFERENT MORTGAGE PRODUCTS AND MAKE RECOMMENDATIONS BASED ON THE BORROWER’S INDIVIDUAL CIRCUMSTANCES, FACILITATING A SMOOTH TRANSACTION FOR THE BORROWER.
A BROKER WILL RESEARCH, INTERPRET AND NEGOTIATE DIFFERENT MORTGAGE PRODUCTS AND MAKE RECOMMENDATIONS BASED ON THE BORROWER’S INDIVIDUAL CIRCUMSTANCES, FACILITATING A SMOOTH TRANSACTION FOR THE BORROWER.
WHAT TASKS DOES A MORTGAGE BROKER PERFORM?
- Assess your needs. The broker will assess your financial situation and determine your borrowing capacity as well as the type of mortgage product that will suit your long-term goals. A broker should evaluate your serviceability potential by presenting you with different calculations across different scenarios.
- Recommend mortgage products. After assessing your financial and personal situation, a broker will recommend suitable home loan products that complement your goals.
- Negotiate on your behalf. The broker will draw upon a panel of lenders and industry networks to find you the best deal with a competitive rate and attractive features.
- Provide support. As the loan process can be a complex proposition, the broker will offer you support and answer any questions that you may have about the process.
- Organise the paperwork. It’s the broker’s responsibility to ensure that they have all the required information to organise and lodge the paperwork on your behalf.
HOW DOES A MORTGAGE BROKER BECOME ACCREDITED?
To be approved by the Mortgage & Finance Association of Australia (MFAA) or The Finance Brokers Association of Australia (FBAA) the broker needs to complete a Diploma in Financial Services, specialising in Finance and Mortgage Broking Management.
They also need two years of experience practicing as a mortgage broker before they can work independently or without supervision.
They also need two years of experience practicing as a mortgage broker before they can work independently or without supervision.
HOW DOES A MORTGAGE BROKER ESTABLISH A LENDING PANEL?
While some brokers maintain direct accreditation's with lenders, the major lenders often have volume and compliance standards that may be difficult for a broker to achieve on their own.
WHO ARE AGGREGATORS?
Aggregators can be discount businesses to fully franchised brands such as Mortgage Choice or Aussie Home Loans. Coupled with their lending panel, aggregators often provide additional services such as mortgage comparison and customer relationship management (CRM) software, mentoring and compliance support.
Most lenders require the broker to either hold an Australian Credit Licence (ACL) or be authorised under a licensee. Additionally, lenders will need to have completed a Certificate IV in Financial Services specialising in Mortgage Broking and Finance. Often, it is also required that the broker becomes a member of an industry body.
Most lenders require the broker to either hold an Australian Credit Licence (ACL) or be authorised under a licensee. Additionally, lenders will need to have completed a Certificate IV in Financial Services specialising in Mortgage Broking and Finance. Often, it is also required that the broker becomes a member of an industry body.
DOES THE AGGREGATOR CHARGE A FEE?
The aggregator will charge a fee for offering the broker access to their lender panel and additional services. This fee is normally a percentage of the upfront or trailing commission, or it could be a flat monthly or annual fee.
Some aggregators may also charge a joining administration fee.
Some aggregators may also charge a joining administration fee.
CLIENT DUTY OF CARE
Under the National Consumer Credit Protection Act (NCCP), a mortgage broker has a duty of care to not recommend an unsuitable loan to you. This means the broker must carefully consider your needs and requirements, including your financial situation, to ensure that you will be able to service the loan without enduring financial hardship.
The broker’s commission must be disclosed prior to any application being made on your behalf. They must provide you with a credit guide that details the commission they receive, the lenders on their panel and a dispute resolution process.
The broker’s commission must be disclosed prior to any application being made on your behalf. They must provide you with a credit guide that details the commission they receive, the lenders on their panel and a dispute resolution process.
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