When applying for a loan for a new home or investment property, or refinancing your current loan, an experienced mortgage broker can be an invaluable ally. Unlike when going direct to a lender, your mortgage broker can review a wide range of lenders and lending products to help you apply for the loan that suits your individual needs.

With a large financial commitment such as a home loan, it’s best to fully understand the whole process and know what you’re getting into before you sign a single document. Here are some important questions to ask your mortgage broker.

Questions to ask when choosing a mortgage broker

1. What experience do you have as a mortgage broker?

2. Do you have membership in the Mortgage Finance Association of Australia (MFAA) and/or the Finance Brokers Association of Australia (FBAA)?

3. What process do you go through when identifying which home loans might suit a particular personal situation?

4. What, if any, brokerage fees do you charge?

5. What commissions are you paid on successful home loan applications?

6. Which lenders do you work with?

Questions to ask your mortgage broker about home loans

Once you have settled on a mortgage broker, here are some further questions to ask regarding home loans:

7. How much of a deposit will I need in order to obtain a home loan?

8. How will my existing personal loans/credit card limits impact my borrowing capacity?

9. What additional fees will I be liable for when I take out a home loan?

10. What home loan features would be advantageous in my personal situation?

11. Do you have a checklist of all the information I need to provide?

12. What are the procedures required in order to obtain and settle my loan?

13. Do I need to fix my interest rate right at the start or can I choose to fix it at a later date?

14. How long will the process take to obtain the finance I require?

15. Can you explain the details of Lenders Mortgage Insurance and whether or not it will be required?

16. Can you process the First Home Owner’s Grant on my behalf if I am eligible?

Questions to ask once your mortgage broker has recommended a suitable loan or loans

Once your mortgage broker has identified a loan product or products that he or she feels would suit your needs, here are some further questions for you to ask about the loan conditions:

17. Why are you recommending this/these loan(s) and how do you see that they meet my needs?

18. What is the interest rate, and is it a short term promotional rate or permanent?

19. Can I make extra repayments during the life of the loan?

20. Do charges apply if I repay the loan early and if so, how much?

21. What additional fees do I need to cover, e.g. for valuation and legal fees?

22. Can you arrange loan protection insurance on my behalf to ensure I can meet the repayments in the event of involuntary unemployment, serious illness and injury or death?

Whether you are planning to buy your first home, sell your home and move to another home, refinance your current loan or buy an investment property, knowledge is confidence, and a qualified and experienced mortgage broker can be your ally, accessing loans from a range of lenders, helping with advice and paperwork and if authorised by ALI Group can ensure you’re covered by a Loan Protection Plan to protect you and your family from the risk of future mortgage default due to serious illness and injury, involuntary unemployment or death.