Finding the right Mortgage Broker
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Loading ...It’s often been joked that in any major city, if there’s a car accident, it will probably be between two mortgage brokers.
It’s only half funny. The truth is that there are literally thousands of mortgage brokers out there vying for your business, from the small, single person operators, through to massive, multinational corporations with billions of dollars of turnover.
As taking out your mortgage is probably going to be the biggest financial decision you make in your life, you need to make sure that the person that you are taking advice from has your best interests at heart.
The key to finding out if your mortgage broker has finding the best product to suit you as his goal, not how much commission he will get from the deal, is to ask him to disclose the commissions and trails that he will be getting from each competing product.
Whilst it’s not unfair for a mortgage broker to make commission and trail when he organises a mortgage for you (he does need to make a living, after all), if all the products that he recommends have commissions at the higher end of the scale, it may be an indication that you’re not getting the full story.
Ask questions of the broker. If they seem unwilling to go into more detail as to why the product that they are pushing is right for you, you may have cause to rethink their value to you. Likewise, if they use a lot of jargon that you don’t understand, and are reluctant to explain it to you in laymans terms, you might start to wonder whether you are sitting with someone who is looking to line their pockets, rather than provide you with all the information you need to make an educated decision.
Finally, if you’re not comfortable with your broker, walk away. Don’t allow yourself to be intimidated into signing something you’re not happy with. Remember, this is a decision which could have far reaching implications.
