Home Loan Brokers in Australia

Many years ago you had to go from one bank to another to find out conditions for your loan. Mortgage brokers simplified the method by providing this information directly to customers. Home loan brokers in Australia (otherwise known as mortgage brokers) are just a convenient way to look for the loan. Mortgage brokers in Australia were very popular before and during early years of internet.

Most mortgage brokers in Australia have a detailed information about major lending institutions such as banks, building societies, lending companies etc. A lot of people still go to brokers because it is easier to ask questions directly (rather then to search for answers themselves).

Why Should I Use The Home Loan Broker?

There is no strict reason to use a broker in order to finance your home or investment. However, searching internet does not give immediate answers. Many brokers actually come to your place. The service is generally free and very convenient. Surprisingly, mortgage brokers in Australia do not push one lending institution over the other. This means that they get the same commission from all its lending clients.

However, what brokers are particularly good at is to match the lender with the borrower's requirements. For example, you may prefer fees and charges of one lender but you have a bad credit history. The lending company does not provide bad credit home loans but your broker can advice you which one is happy to accept your application. This way you save money and time to achieve that first step towards your loan application.

Brokers are able to analyse your financial situation prior your home loan application. This means that they can advise you about the chances to obtain the required loan. Often, mortgage brokers in Australia can offer some alternatives in order to finance your home or investment. The information provided by mortgage brokers is usually satisfactory and complete.

Things To Do Before Meeting The Home Loan Broker

Buying a house or an investment is a life time financial commitment. Therefore, it is important to be prepared when applying for the loan.

Firstly, you need to prove your Australian citizenship or a permanent residence. Passports, drivers license etc. are necessary documents to verify your residential status. Secondly, income details:

  • The latest 2 years of full tax return and assessment
  • The latest pay slips
  • Balance sheets (if self employed)

Thirdly, income details (other than employment):

  • Property rental statements
  • Statements for shares
  • Centerlink income statement
  • Government and private pensions

Next, financial contributions should include:

  • Bank statements showing 6 months of savings
  • Bank statements showing other funds contributions

Then, financial commitments must indicate:

  • Most recent statements for loan repayments
  • Most recent statements for credit cards debts

Finally, you need to show the details of the property, which you intend to purchase:

  • Copy of the contract of sale (if property already exists)
  • Copy of a tender and a fixed price building contract (if building)
  • Council rates, etc.

Choosing Mortgage Broker in Australia

You do not have to settle with the first mortgage broker you see. A good home loan brokers in Australia should provide the following:

  • Free of cost service to you
  • At least 15 lenders (including major banks)
  • The same commission from all lenders he/she represents
  • Certificate IV in Financial Services
  • Membership of the Mortgage & Finance Association of Australia (MFAA)
  • Indemnity Insurance
  • Written Comparison

If you are unhappy with the service then you should first contact the broker's head office. Any problems with the home loan application can further be forwarded to Credit Ombudsman Service (telephone: 1300 780 808).