Becoming a homeowner is a big step. And entering into a home loan agreement will affect your financial situation for years. So you want to ensure that you are in safe hands.
A good mortgage broker can help you navigate the real estate and home loan process. Doing it all on your own can be overwhelming. Particularly if you’re a first-time homebuyer, self-employed, or you’re time-poor.
With online business increasingly becoming the norm... You can now procure the services of an online mortgage broker.
But is it safe to use a mortgage broker service online? And how do you know that your mortgage broker of choice is a reputable one?
In this article, we’ll break down what benefits an online mortgage broker can provide you. And how you can make sure you have a qualified and licenced online mortgage broker on your side.
YouBroker is an online mortgage broker
First up, YouBroker is a fully licensed and insured online mortgage broker.
We exist to help compare and get a mortgage much more clear, fast, and simple.
We are designed from the ground up to be helpful for all your home loan needs and work all major banks and lenders, including NAB, Commonwealth, and ING Bank.
By using YouBroker, you’ll be able to set up your approval and track settlement, all online. If you are ready to get approved, head to www.youbroker.com.au/get-started.
What Services Do Mortgage Brokers Provide?
Let’s have a check on what mortgage brokers do, in general.
A mortgage broker is a financial professional who acts as an intermediary between you, the borrower, and banks and lenders.
There is a vast amount of banks and lenders out there. And there are many different home loans and mortgage packages for home buyers to wade through. On top of this, the application process can differ between lenders and can depend upon your financial situation and income.
It can be a confusing scene! But having a good mortgage broker on your side can make the home loan search and application process easier.
A good mortgage broker will:
- Communicate with you to find out your wants, needs, and property goals.
- Assess your financial situation, including your income, credit score, assets, and liabilities to work out your borrowing power.
- Explain the different types of home loan products available, such as variable rates, fixed rates, and loan terms.
- Educate you on the policies, agreements, requirements, and conditions in relation to lenders and home loan products.
- Explain suitable mortgage packages available to you. And provide advice on the different financial products that may be attached, such as credit cards, offset accounts, and lender’s mortgage insurance (LMI).
- Research their network of banks and lenders to find a range of home loan options that suit your goals and financial situation. A good mortgage broker should have a wide variety of lenders to work with, such as a mix of big banks, non-banks, neobanks, and credit unions.
- Provide guidance, education, and updates around the entire loan application process. For example, information on pre-approvals, the types of documentation to provide, and any additional requests and requirements from the lender.
- Apply for the home loan on your behalf and liaise with the lender.
- Liaise with the real estate agent, solicitor, conveyancer, or any other suitable party.
- And maybe the most important one... Adhere to codes of conduct and industry regulations to act in your best interests.
Why Use A Mortgage Broker?
Mortgage brokers are required to act in the best interests of the borrower when suggesting home loan products. They use their experience, financial knowledge, and lender network to find you the best home loan rates and type of loan to suit you.
But not everyone chooses to use a mortgage broker when looking for a home loan. So, why use a mortgage broker?
The following are types of people who can benefit from working with a mortgage broker:
- First-time home buyers: When you’re brand new to the property game, it can help to have a knowledgeable party on board.
A mortgage broker will walk first home buyers through the real estate and home loan application process. They can also provide information and guidance around the First Home Super Saver Scheme. - The self-employed, contract or casual employees, or those with bad credit history: If you fall into these categories, you’re more likely to have a complex home loan application. And not all banks and lenders will be willing to offer you a loan.
A good mortgage broker will know the banks and lenders within their network who are willing to offer self-employed, low doc, and alt doc home loans. They’ll be able to walk you through the requirements to apply with non-traditional income streams and bad credit history. - Anyone and everyone: Let’s face it. Sometimes employing the help of a professional is a good move to help you get the best deal.
Or, maybe you’re time-poor and need someone to do the legwork for you. Navigating the complexities of buying a property can be time-consuming and overwhelming. Employing the services of a reputable mortgage broker can take the pressure off you.
And if you are time-poor... Working with an online mortgage broker, like YouBroker, is a fantastic way to make your home ownership dreams happen.
With an online mortgage broker, you can apply for their services at your convenience, in the comfort of your home, or on the move.
What Are The Benefits Of An Online Mortgage Broker?
There are 3 main benefits an online mortgage broker can offer you. And they’re things we need more of in our busy modern lives. They are:
Convenience
When you apply with an online mortgage broker you can do so at your convenience. You’re not beholden to restricted opening hours.
If you’ve got an internet connection, you’re able to get started with an online mortgage broker. It’s a great option for those in rural areas, travelers, people with disabilities, caregivers, or anyone with a busy schedule.
Most online mortgage brokers will have an online portal. That way, you can check the status of your application or submit queries at your own leisure.
Time
What’s the number one thing we all want more of? It’s time. It’s the most valuable commodity we have.
Having an experienced and reputable mortgage broker with a varied lender panel on your side can save you time. They can compare lenders and loans for you.
But an online mortgage broker saves additional time by doing away with the need for travelling to appointments, or scheduling phone calls.
Also, many online mortgage brokers have invested in robust online portals, client management systems, and online calculators. This often makes assessing your application a quicker and easier process.
Savings
Mortgage brokers get paid in 2 ways. Independent mortgage brokers outside of the lender commission-based system will charge you fees. While others operate on a commission basis with the lender, and may only charge additional fees for commercial or more complex applications or loans.
If your mortgage broker charges fees, an online mortgage broker will have fewer overhead expenses than other brokers who have heavily invested in offices and outlets. These savings can be passed onto you, the client.
Will I ever Need To Meet My Online Mortgage Broker Face-To-Face?
The pandemic and resulting lockdown made us all think differently about how we do business. We’ve had to accept the reality that face-to-face business isn’t always an available option.
In pre-pandemic times there were online mortgage brokers who preferred to meet in person at least once. But in today’s increasingly tech-savvy world, many online mortgage brokers can do everything virtually.
In the end, it is dependent upon the policies of your online mortgage broker of choice.
Is It Safe To Use An Online Mortgage Broker?
It is safe to use an online mortgage broker... But it depends on a few criteria.
There are many online mortgage brokers out there for you to choose from. But not all of them have the same level of experience, training, lender network, or reputation.
So, before signing up with an online mortgage broker, it’s wise to ask the following questions:
- Do you have an Australian Credit Licence (ACL) or are you an Authorised Credit Representative (ACR)?
Opting for a fully licenced online mortgage broker, like YouBroker, is a good decision. This means your broker of choice meets the requirements of the Australian Securities and Investments Commission (ASIC).
ASIC runs a website for consumers, called MoneySmart. You can search for your mortgage broker on MoneySmart to check if they are licenced. - Are you a member of any reputable financial professional associations?
Most reputable broker associations require their members to have a certain level of training and qualifications, as well as being fully licenced. Members will also be beholden to the professional codes of conduct outlined by an association. They’ll also get access to training and mentorships.
The most recognised professional mortgage broker associations in Australia are the Mortgage and Finance Association of Australia (MFAA), and the Finance Brokers Association of Australia (FBAA).
ASIC doesn’t require that mortgage brokers be a member of a professional association. However, membership in one of the 2 aforementioned associations may be required by certain lenders before they’ll accept a mortgage broker in their network. - Do you have a 100% secure online portal to protect my personal information?
This is a very important consideration!
To apply for a home loan on your behalf, a mortgage broker will need access to sensitive personal and financial information. The kind of information you want to be safe and secure from hackers.
When you apply with YouBroker, you can rest assured that your information is secure. We use a 100% fully secure online portal. - What lenders do you work with? And is your business owned or associated with any lender on your panel?
Make sure you employ the services of a mortgage broker that works with an extensive and varied list of lenders. That way, there is the opportunity for your broker to find more home loan products that suit your goals and financial situation.
It is wise to find out if their business is owned or heavily associated with a lender on their panel. That way you can watch for the potential for aggressive suggestions to go with the lender in question. - What is your level of experience and your success rate? And what are your qualifications? Ask for information about qualifications, successes, and experience to make sure you’re working with a professional. You want to know that your mortgage broker can deliver the goods.
If your mortgage broker is licensed by ASIC, you can be assured that they have a Cert IV in Financial Services (in Finance and Mortgage Broking) at a minimum.
If your broker is a member of the MFAA, their membership is dependent upon acquiring a Diploma of Finance and Mortgage Broking Management within 12 months of their membership.
Some mortgage brokers have additional experience and qualifications that could give them a professional edge. - Will you be providing me with a copy of the credit assessment and credit guide?
Ensure that your online mortgage broker is prepared to provide you with a copy of the credit assessment and credit guide. That way you can check the information is correct before proceeding.
What If I’m Still Not Sure?
Still not sure if a particular online mortgage broker is a good choice?
If after asking the above questions you still have doubts, contact the following associations:
- MFAA.
- FBAA, or
- the ASIC professional registers, under Credit Licensee or Credit Representative.
Ask if they are aware of any complaints or issues with your online mortgage broker in question. They usually have a “naughty list” of not-so-great brokers that should be avoided. You can also check ASIC’s Banned and Disqualified registers.
The Wrap Up
Working with an online mortgage broker is becoming increasingly popular with homebuyers and those looking to refinance. The added convenience and savings on time make it a good choice for many.
But just as there are good and bad in any industry, online mortgage brokers are no different.
Do your homework to make sure your mortgage broker is licenced, qualified, experienced, and prepared to provide you with all pertinent documentation.
Not only do you want to ensure your broker has the know-how to assess your financial situation and get you a great loan. You want to know that your data and personal information is safe and secure. It’s important to ask about the security levels for their online portal and how they handle your information.
If you’re interested in more information on finance, lifestyle, and real estate, explore YouBroker’s articles here: https://youbroker.com.au/articles/
Looking For A Qualified and Licenced Online Mortgage Broker? YouBroker Can Help
Buying a home or refinancing your loan can be a stressful process. On top of your busy schedule, you’ve got to compare lenders, loan products, and deals, all while getting assessing your financial situation.
It’s enough to overload even the most financially savvy of us.
But with a fully licenced mortgage broker like YouBroker on your side, the legwork is done for you.
Through our YouBroker digital platform you can:
- Filter and Compare interest rates, banks, lenders, and home loan options to find the right type of loan for you and your financial situation.
- Calculate your personal borrowing power, to give you insight into what loan amount you may be eligible for at each bank (most people love this!).
- Verify your identity and save time on branch visits.
- Fill out only one application form, instead of several.
- Guide you through the home loan application process, what documentation you’ll need, and pre-approvals.
- Keep you in the loop about the best cashbacks, and deals within our extensive lender network.
- Guide you through the real estate purchasing process, whether you’re buying an owner-occupied or investment property.
- Help those with more complex home loan applications to get a successful loan outcome, for example, if you are self-employed.
Ready To Get Your Personal Borrowing Insights?
So if you’re looking to take the overwhelm out of the mortgage application process, our team is ready to assist.
We offer a full online service so you can start the process on the go or from the convenience of your own home.
Interested? Get started with YouBroker here: https://youbroker.com.au/get-started
