This depends on your situation. Sometimes fees and charges may apply for complex loans, but any and all fees must be discussed and disclosed to you up-front. One of the myths about brokers is that using a broker costs more. It does not. Brokers are paid a commission by the bank or lender to whom they direct the business. That commission is generally paid from the same source as that used by the bank to finance their own branches and sales staff. It does not affect the rate you pay or the level of service you receive.
Absolutely not! There is legislation applicable to the industry, specifically to protect consumers from that sort of behaviour. It is known as the NCCP, or National Consumer Credit Protection Act. It sets out the ethical standards and guidelines to ensure brokerage professionals reveal all commissions and fess. Our only job is to bring you the best loan for your needs and servicing capacity. We are diligent in our observance of all appropriate consumer protections.
That depends on how much money you have available for a deposit, and your current income and expenses position. We offer the Cashflow Maestro program to help you get your financial situation in order before you apply for a loan.
The Reserve Bank of Australia meets on the first Tuesday of each month to determine the official cash rate for the entire country. The cash rate is the rate charged between banks for overnight loans. Bank loan rates are made up of the cash rate plus a profit margin. Interest rates are set by lenders, based on this data. Mortgage brokers have no control over the rates set, other than to look for the best rate available for a loan that suits your needs and individual circumstances.
I act for you; a lender sells you their products. When we talk about a "loan product" we are referring to one of the many thousands of loan options that are currently available to you. Each bank or lender has a broad offering of different loan options, They include Low Doc; Package Loans; Re-draw Facilities; Fixed Rate; Variable Rate; Interest Only; Family Guarantor; Introductory Variable... and so on. As brokers, our role is to help you negotiate this confusing forest of information. If you go direct to a bank they will only offer you the loans they have, so you miss out on more than 95% of the loan offers available.
We are paid directly by the bank or lender, as part of their overhead cost of arranging the loan. It's the same source of funds they use themselves to pay for their own branches and lending staff. There may be circumstances in commercial loans where the borrower pays the broker directly, and even in the case of some mortgage loans. At all times, we meet our obligations in advising you of any commissions or payments we earn in relation to loans we broker for you. This disclosure is a legislative requirement.