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What Is The Role Of A Mortgage Broker? And Should You Use One?

Table of Contents

1. Looking for a home or investment?

2. What is a mortgage broker?

3. Questions you can ask your mortgage broker

4. How many lenders do you deal with?

5. How much experience do you have as a mortgage broker?

6. What differentiates you from other banks/brokers?

7. Why should I use a mortgage broker rather than going straight to the bank?

8. How does this decision to choose between a mortgage broker vs going directly to a bank affect my home buying journey?

Looking for a home or investment?

Buying your first home or next investment property is an exciting time, but it can also be challenging if you don’t know where to start.

We understand there are a lot of things to be considered and several important decisions to be made. One of the key things on your list will be whether to go directly to a bank or consult a mortgage broker.

You’re probably more worried about finding the perfect home, not the perfect mortgage. That’s why at Abacus Finance we’ve put together a guide to assist you with your home-buying journey.

Our guide will help you to ask your bank or broker a list of key questions to help your decision-making process when weighing up who to choose.

Disclaimer: We have no intention of generalising banks/brokers and making any biases in favour of one over the other. We are simply stating our opinion based on our experiences

What is a mortgage broker?

Before getting started, it’s best to understand what a mortgage broker does and what they can offer you along your home-buying journey.

A mortgage broker helps act as a bridge between you and a bank when applying for a home loan. They’re there to provide you real value and act in the best interest of you in getting the best home loan deal possible.

Abacus Finance Tip: Look out for brokers who represent themselves for certain bank predominately

Questions you can ask your mortgage broker

Key questions to ask your mortgage broker

Our goal is to give you as much information as possible to help you make an informed decision about choosing your bank or broker. That’s why we’ve composed a list of questions you can ask your mortgage broker to help weigh up who best fits your home buying journey

1. How many lenders do you deal with?

By gaining an overview of the number of lenders associated with that particular mortgage broker, can show how competitive they are in the loaning market. This is also an opportunity to see the different products available and gives you a chance to compare them with the various lenders/brokers.

On average some brokers have access to 30-40 lender, but do they use them all? At Abacus Finance, for example, we research all of our 50 lenders and regularly use up to 10 different lenders per month. This means for your specific financial situation, will be in the loop to help structure a home loan that meets your needs. We also don’t just rely on the major lenders; we find what’s right for you.

2. How much experience do you have as a mortgage broker?

One of the most crucial things to ask your bank/broker, since they will be handling your finances on one of the largest valued assets you may own in your lifetime. That’s why it’s important to know their credibility and overall experience.

To evaluate their credibility and expertise in the field, they should have at least 5 years of experience with great customer relations they have built over that period.

A sign of good customer satisfaction is a customer who refers to the mortgage broker to others. At Abacus Finance, 80% of our customers are referred by existing customers with customer retention of 75%.

Our team of lending specialist have obtained extensive experience in multiple lending institutions. Ensuring that we provide you with “12/10 quality service”

3. What differentiates you from other banks/brokers?

With hundreds of banks/brokers out there, it’s important to know why you would choose that particular one. Are they proven experts in their field? What do they offer in comparison to their competitors? You need to understand what makes them stand out from the rest.

4. Why should I use a mortgage broker rather than going straight to the bank?

This question is a good idea, as it helps to set expectations. It helps highlight what are the benefits you get from a mortgage broker vs directly going to a bank. You need to know what’s in it for you and how they can help you with your home-buying journey.

5. How does this decision to choose between a mortgage broker vs going directly to a bank affect my home buying journey?

By asking this, you can help to provide you with critical insight on how your home buying journey may look when you consult a mortgage broker vs going directly to a bank. A good answer will cover the importance of having direction and guidance from someone who has tried and tested many loan products available in the market.

Our answer at Abacus Finance

At Abacus Finance, there is a reason why 80% of our business come from referrals. We don’t just give you your money’s worth, we aim to save you time and stress so you can focus on more important things. It’s not just about finding the lowest interest rate – there are other things to consider. Especially if you’re thinking about starting a family, flexibility is an important feature.

Let us do our job and we’ll leave you with the fun bit of finding your dream property. No need to worry about finding the perfect mortgage leave that in our hands. Contact Us Now

The information in this post is general in nature and should not be considered personal or financial advice. You should always seek professional advice or assistance before making any financial decisions.