Thinking of Borrowing a Loan? Don’t Forget to Ask these Questions from your Broker

If you are planning to invest in real estate and unsure of your lending knowledge, switching to the advice of a Mortgage Broker is an ideal solution. Mortgage Brokers in Australia play an intermediary role between the buyer of a property and its seller, whilst making the process smoother for both the parties. To ensure the safety of buyers in the country, the Australian Securities and Investments Commission (ASIC) demands the brokers to have a certificate IV in Finance and Mortgage Broking as a minimum requirement to operate legally in Australia.

The process of involving a mortgage broker in your purchase of the property is quite simple. The broker will understand your present and future ownership goals, your individual circumstances and then compare the wide range of loan options available that best suit your requirements. This would ensure that your investment decisions are concerning to your plans. The involvement of a broker in the process of borrowing loan will give you an advantage in getting the pre-approval and they will guide you right till the settlement of your purchase and even after.

However, before settling down with the agreement, you must be confident of your choice of the broker. It is advised to ask the following questions from your broker before you finalize him for your purchase.

• Eligibility conditions- Before consulting your broker for your investment, you must be sure of your intended purchase price, the amount of deposit that you already have, your income, your intent of buying the property (whether you’re buying the property to live in it or as an investment purpose), etc. This will help your broker give you a much more accurate indication of your borrowing capacity.
• Qualifications and Training- Since you are building in a lot of trust in your broker, you must be sure of his capabilities. You should not hesitate in asking him about his qualifications and training.
• Broker Fees- The mortgage brokers follow a standard practice of offering their services free of cost. Knowing this, you must be wise enough to not pay your broker even if he asks you to. It is always a good idea to know what your costs will be upfront.
• Rate of Interest- Borrowing loan at a reasonable rate of interest is going to save you a lot of money. You must ask for at least 3 -5 competitive products available and do a proper comparison based on interest rates, fees & charge and you must study the terms and conditions carefully and make sure you are choosing the right product as per your financial goals.
• Future security- Your broker should guide you in a direction that does not limit your future lifestyle decisions. Your broker must consider your plans for longer time period and offer you suggestions for investment loans accordingly.

Being sure of these details from your broker will assure successful association and purchase of your dream property.