Monday 14th March 2016What are the Mortgage Broker Regulations?
A mortgage broker is a professional who helps borrowers negotiate with lenders for the borrowers’ financing needs. Brokers also provide expert information to borrowers by comparing the various loans available in the market. Usually, brokers have access to a wide variety of products as well as an array of lenders. The aim is to provide their clients the best and most appropriate loan depending on their needs and preferences. A competent broker should serve the best interests of the client by looking at the client’s specific needs and circumstances, and in the end, interpret the type of loan that best suits a client and explain why.
How to Be a Mortgage Broker?
There are basically four steps to become a mortgage broker.
1. Undertake the education. The minimum requirement is to get Certificate IV in Finance & Mortgage Broking. Further studies may include a Diploma of Finance & Mortgage Broking Management.
2. Get a license from Australian Credit License through ASIC (Australian Securities and Investment Commission).
3. Join a professional association like MIAA (Mortgage Industry Association of Australia) or FBAA (Finance Brokers Association of Australia Limited).
4. Obtain lender accreditation.
There is no formal regulatory body in the industry of finance broking in Australia but professional associations perform roles as supervisors. The main focus of these associations is to develop and reinforce industry standards to ensure the consistency and quality of the services provided by brokers.
The role of the brokers is to search for, compare, and offer their clients a choice among various options that meet the preferences of the borrowers. The broker is assumed to know the products on the market. They should also have the ability to research the right products, thus saving valuable time to the borrower.
Here are some guidelines to keep in mind when choosing a mortgage broker:
1. The broker should be an accredited mortgage consultant. Being a member of a professional association means that the broker adheres to the strict code of practice required by the association. Moreover, it means that the broker is covered by the Mortgage Industry Ombudsman Scheme.
2. Determine which lender and loan products the broker offers. The broker should disclose how his or her commission or fees are being paid. If the broker does not disclose, you should ask for it. It is not a confidential matter. Generally, there should be no upfront fees paid by the borrower unless some other service is being provided.
3. Find out how the mortgage broker determines suitable loan options for you. When you talk to a broker, it is important that you should understand why the broker recommends a certain type of loan over another. He should outline how he was able to conclude that this was the better option. It may relate to the amount of deposit you have, your length of employment, or your available financial documents. Your broker should be able to clearly explain this to you.
4. A broker should be able to present your loan application in a positive light, but not to the point that the law is transgressed. The broker does not get paid until the loan is settled so it is always at the broker’s best interest to make sure that the client’s application is approved but it must be done ethically and within the lending policy set out by the lenders.
5. A mortgage broker should make it a point to answer the questions that a client may have, even after the loan is settled. This way, the broker is able to build a relationship with the client. When the time comes in the future that a loan refinancing is needed, the first person that would come to mind is this broker.
A broker should help you understand the specific loan needs of a borrower. You don’t have to wade through the jargons related to mortgage since it is the job of the broker to assist you in securing the right mortgage. Your broker should know what you need, which lending institutions to recommend, and which products to offer you. This is often done through research. Since most brokers have access to several lenders, they can easily provide options available to the borrower, based on the latter’s needs and preferences.
A mortgage broker also assists in the completion of the loan application. When all the documentation requirements have been completed, the broker submits the application to the lender. In turn, the broker also assists the lender in case any question comes up regarding the application of the borrower. Even after settlement between the borrower and the lender, the broker should be available to assist his client as the need arises.
At 1300HomeLoan, you can access reputable and trustworthy mortgage brokers all over Australia. 1300HomeLoan mortgage brokers look at different aspects of your loan application and make sure that your application will qualify based on the lender’s requirements.
Brokers should have access to a wide variety of lenders. Our mortgage brokers have access to over 30 lending institutions, including their products. Being the largest, fastest growing, and most respected mortgage broking companies in Australia, 1300HomeLoan has been helping borrowers select the lending company that will give them the best possible rates and loan package. Our brokers offer their services in all capital cities of Sydney, Melbourne, Perth, Brisbane, and Adelaide. They are also available in most major regional cities. No matter where you are located, our mortgage brokers are ready to help you.
We can help you purchase your new home by finding you the best deals in town. We can also assist you whether you want to invest, refinance, renovate, or build. Aside from that, there are budget and financing tips that your brokers can assist you with.
You can contact us at anytime by calling 1300 466 356. You can also send us your queries at firstname.lastname@example.org or visit our website. Our customer care assistants are ready to help you with you concerns.