Have you ever wondered about the things that mortgage brokers Melbourne don’t tell you about when taking out a home loan? Sometimes it is in their best interest to keep you in the dark about certain things. Below is a list of four different things that a mortgage broker may neglect to tell you.
- Brokers don’t compare the entire market – Many mortgage brokers choose to use an aggregator, which is essentially a third party who deals with the lenders on the broker’s behalf instead of the mortgage broker directly dealing with the lenders. The problem with aggregators is that they only compare a select number of mortgage loan providers and home loan products. The majority of lenders with the lowest rates don’t tend to be listed on these lender panels as they don’t often have as much money to afford to pay the commissions.
- Brokers may receive a higher commission if they recommend certain types of home loans – As mortgage brokers Melbourne don’t get paid by you and instead get paid on commission through lenders, they may be swayed by certain lenders offering “commission specials.” These specials offer a higher percentage of commission to mortgage brokers offering specific loan types. Mortgage brokers Melbourne are required to reveal their commission percentage in any loan documents but they are not required to reveal which lenders are offering them. This officially affects mortgage broker behavior as they tend to give the most business to the lenders offering them the highest commission.
- Brokers are not property experts – Mortgage bankers are financial experts, not property experts. Although they may have personal advice on the best type of property for your home loan, take that advice with a grain of salt and seek out a property expert if you have any questions. Tax accountants and financial advisors will be able to provide you with the most educated help. If you need specific tax break related information, don’t necessarily go by the word of your mortgage broker.
- You can do it yourself! – Many mortgage brokers only deal with certain types of home loans (sometimes the ones that provide them with the highest commission – see above!). Unfortunately, this means you may miss out on the best home loan for you! Make sure you’re searching the home market yourself to find the best interest rates and loan types. There are a number of reputable home loan comparison websites that let you view many types of home loans side by side to make an equal comparison. Even if you’re still working with a mortgage broker, you can approach them with this information and see if they’ll work with you.
Even though a mortgage broker is supposed to have your best interests in mind, there are a few things they may not tell you. Hopefully this list helped you know what to look out for! For more information, please check out www.mortgagebroker247.com.au for additional tips and information!