Why use a Mortgage broker

A mortgage broker is usually accredited with up to 30 different lenders and has access to literally hundreds of different products. If you go to your bank for a loan they can only offer you the products they have, . And they are also limited to their own credit policies as well as their turnaround times.

A mortgage broker on the other hand can access lenders based on

· lowest cost,

· specific loan features that meet your needs,

· various credit policies

· different service turnaround tomes between lenders.

A mortgage broker will help you find a lender who is willing to lend to you, offers the right time frames and the right products to meet your specific needs. This is our Best Interest Obligation to you..

What mortgage brokers do

A mortgage broker is a professional who deals with banks or other lenders to arrange a home loan. By law mortgage brokers must act in your best interests when suggesting a loan for you.

A good broker works with you to:

• Understand your needs and goals.

• Work out what you can afford to borrow.

• Find options to suit your situation.

• Explain how each loan works and what it costs (for example, interest rate

, features and fees).

• Apply for a loan and manage the process through to settlement.

How mortgage brokers get paid

Usually lenders pay the broker a fee or commission for selling their products, so you don't pay the broker anything. In some instances, brokers may charge an upfront fee, but they need to disclose this to you upfront before providing any advice. It is always a good idea to ask your broker if they charge any upfront fees.

Consider your must-haves and nice-to-haves

Before you see a broker, think about what matters most to you in a home loan. Do you simply want the lowest cost loan? Do you want specific features, such as being able to make extra repayments?

Thinking about this beforehand will make the conversation with your broker easier. Make a list of your:

• 'must-haves' (can't do without)

• 'nice-to-haves' (could do without)

Meeting with a mortgage broker

Often people do not know what they want or need when it comes to loans and features. Your mortgage broker will explain the different products and features to you and let you know the risks and benefits of each feature. This education from your broker will help you decide what options will work best for you.

The broker should present you with more than one option and some comparisons that best suit your financial situation. They will explain how each loan option works, what it costs and why it's in your best interests.

You may have a preference for a particular lender, such as your current bank. The broker should show you loans from other lenders as well, so you can compare.

A home loan is a long-term debt, so even a small difference in interest adds up over time. If you can get a lower interest rate from another lender, you could save thousands of dollars.

Whether your buying your first home or looking for a better deal, contact Clime Finance to see how we can help you.

www.climefinance.com.au