Questions to ask your mortgage broker

Mortgage House has put together a list of questions you should ask to test whether or not your mortgage broker is right for you.

Which type of loan is best for me?

If your mortgage broker is new to you, then they should spend a lot of time asking you questions, before they answer this one. You need to genuinely feel like they are assessing your individual needs and property goals, and not just ticking off a list of questions. The more questions they ask the better, because that means it’s more likely they will be able to match you with a suitable home loan. You want a loan that suits all your needs, not just some of them.

Who is on your lending panel?

This is a really important question because you want to know you will have options. The best outcome from your mortgage broker is that there is a combination of bank and non-bank lenders on their panel. If they have more than 20, then you can feel comfortable there will be enough choice. But don’t simply go with a mortgage broker because they have the biggest lending panel. While choice and diversity are important, an individual broker with a large lending panel may not be familiar with all of the products they offer. And with so many investment mortgages on the market today, it is important to find one that suits your individual needs.

What are the fees on the loan?

Every investment decision you make is made with as much information as possible, and mortgages are no different. A mortgage broker should be able to tell you exactly what the fees will be and explain them to you in plain English. Be on the lookout for mortgage brokers who may try to cover up any fees with jargon or complicated language. And if you don’t understand what the fees are for, ask. If the broker recommends a mortgage that charges fees for additional repayments, ask them to find you another one that doesn’t. Even if you are looking for a fixed-rate loan, there is a range of options that won’t penalise you for extra repayments, however there may be a cap on how much extra you can pay each year.

When will my loan be approved?

A good mortgage broker will understand there are three levels of approval and be able to simply communicate to you what they are. The first is the pre-approval, which can be obtained instantly, but is not binding. That means it should never be used to make an offer. Conditional approval means you have completed your application form and submitted it, and the supporting documentation shows you can repay the loan. The bank or lender will approve the loan, based on the condition that the property you want has been valued and approved. Full approval is once this has been done. All up, it can take anywhere up to 10 days, under normal circumstances. A mortgage broker should also tell you exactly what paperwork you need to apply for a loan, to make the process faster. 

The right investment property can generate income and provide significant profit. Your strategy should be backed by a financial product that suits your goals and needs, whether you are looking to purchase your first investment property or adding to an established portfolio. In every case, Mortgage House has a product for you.

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