What to Expect Before Meeting Your Mortgage Broker

1st August 2024

 

With many lenders to choose from, a mortgage broker can help you find a home loan that meets your needs and offers value for money. Here’s a guide on how to prepare before meeting your mortgage broker. 

 

A mortgage broker acts as a go-between with banks or other lenders to arrange a home loan. They must act in your best interests when suggesting a loan for you. A good broker will: 

  • Understand your needs and goals. 
  • Determine what you can afford to borrow. 
  • Find loan options that suit your situation. 
  • Explain how each loan works and what it costs (e.g., interest rate, features, and fees). 
  • Apply for the loan and manage the process through to settlement.

 

Typically, lenders pay the broker a fee or commission for selling their products, so you usually don’t pay the broker directly. Occasionally, a broker might charge you a fee directly. It’s important to understand how your broker is compensated to ensure you’re getting a good deal. 

Before meeting with a mortgage broker, ensure the broker is licensed to give credit advice by searching ASIC Connect’s Professional Registers and consider your non-negotiable features, for example, the lowest cost loan vs. the ability to re-draw.  

 

Documents to Bring 

For the initial meeting, bring proof of identity (e.g., passport, driver’s license). If you decide to proceed, you’ll need additional documents such as: 

  • Recent bank statements 
  • Proof of deposit (e.g., savings or equity) 
  • Proof of income (e.g., payslips, tax returns for self-employed individuals) 
  • Statements for any existing liabilities (e.g., credit cards, other loans) 

 

Questions to Ask Your Broker 

Prepare a list of questions to ensure you understand the loan options available: 

  • Do you offer loans from a range of different lenders? What sort of lenders do you work with? What kind of lenders can’t you access? 
  • How do you get paid for the advice you’re giving me?  
  • Why did you recommend this loan to me?  
  • What fees will I have to pay when taking out this loan? 
  • What features come with this loan?  
  • How do the fees and features of this loan affect how much the loan will cost me? 
  • Can you show me a variety of options, including one with the lowest cost? 

 

Meeting with a mortgage broker is a significant step towards achieving your property goals. Arriving prepared and understanding the process ensures you get the most out of your experience, leading you to find a mortgage that best suits your needs. Being well-prepared with the right documents and questions will help make the process smoother and more efficient.