
More borrowers are turning to mortgage brokers for home loans than ever before. Almost 75% of borrowers in the September 2024 quarter (MFAA 2024) used a mortgage broker for their new home loan.
So, what does a mortgage broker do? My guide explores 116 ways a mortgage broker can help a borrower.
Why should you trust my list? As a licensed mortgage broker, I have been helping clients find suitable home loans since 2008. Time is precious and I believe in not wasting any of it—mine or yours.
What Does A Mortgage Broker Do?
A mortgage broker will help you find the right loan for your situation. Here are some of the many ways a mortgage broker can help borrowers.
The first and most important item on my list clarifies who mortgage brokers work for. The answer is you. Let’s get into it.
They Act in Your Best Interests

1. They Work For You
The law in Australia dictates mortgage brokers have a best interests duty to the borrower. Importantly, this only applies to mortgage brokers and not banks. I will let that sit with you for a bit.
Be aware of who is working for you.
2. They Listen To Customers Goals And Objectives First
This allows the mortgage broker to understand your priorities and so act in your best interests. It forms the cornerstone of their analysis.
Having a conversation about what borrowers want now and for their future selves is a crucial first step in any home loan application process.
3. They Match Borrowers With Lenders
It is not all about rates. Some banks can only deal with a certain type of customer. A self-employed borrower is a great example. If you are self-employed for 18 months as opposed to five years, it will mean some lenders cannot offer you a home loan whereas some can. A mortgage broker can save a borrower time by understanding which lenders have policies to match a borrower. There is no point applying to a bank with low rates if the bank is not able accommodate your employment type.
4. They Prevent Poor Choices
If borrowers request a loan direct from a bank there is no best interest duty obligation. If banks have a product that is good enough, then that is what they are allowed to sell you. There is no accountability to research the market to ensure many options have been considered. It can be a case of near enough is good enough.
5. It’s A Highly Regulated Environment That Demands Professionalism
What used to be State-based and widely inconsistent regulation for mortgage broking is now Australian Law regulated by the Australian Securities and Investment Commission (ASIC). This ensures accountability and consistency which has led to great outcomes for Australian borrowers. When a borrower engages a mortgage broker, they can feel confident in the industry standards within which they are required to operate.
6. They Take A Balanced Approach
Rates get the headlines. Cashback incentives do as well. But assessment timeframes are another key variable that goes into deciding which lender a borrower will apply to. When a contract is involved, timeframes are all important as there can be financial penalties for failing to meet them. Mortgage brokers consider these assessment timeframes in their overall recommendations.
They Offer A Choice Of Lending Options

7. They Offer A Choice Of Lenders
Mortgage brokers need to gain accreditation with lenders to offer their products to potential borrowers. This enables them to provide an informed choice to consumers.
Some lenders you will have heard of and some you won’t. Bring on the competition.
8. There Is More Competition
Many new lenders start their lending journey via the broker network. Using this existing distribution channel enables a clear pathway to borrowers. Given new lenders come to the table with a point of difference (quick assessment, online only, low rates, etc) they can quickly establish some market share. This puts big banks on notice and drives competition. This is great for borrowers. Mortgage brokers play a key role in educating new borrowers around new and novel products and thus driving competition within the home loan market.
9. They Introduce New Lenders
With each passing year, we are seeing many new entrants in the home loan arena. It is a huge industry that has long been dominated by a few big banks. Borrowers have supported these new entrants who offer various points of differences.
10. They Offer Accurate Loan Comparisons
A home loan comparison can make it clear what the costs of each option are. It is important to step back from “headline” rates and incentives to ensure borrowers are making an informed decision. In-depth market knowledge is needed to offer several lending options (in most instances) to a borrower. As Mortgage brokers are required to deal with multiple lenders, it ensures choice for borrowers and demands a level of lender relationship management. Such is the demand from borrowers for information, it is often the case that mortgage brokers know more about a lending product than staff within a bank branch.
11. Most New Loans In Australia Are Secured Via Mortgage Brokers
Most new loans are secured via mortgage brokers rather than consumers approaching a bank directly. This is testament to the reputation and trust of the mortgage broking Industry. Most lenders choose brokers to help distribute their loans.
12. They Have Access To Exclusive Offers
Some mortgage brokers have special and exclusive access to loan products and financial incentives from borrowers not available to the public directly.
13. There Are Special Loans For Medical Professionals
Some lenders are looking to attract specific professionals within the medical industry. These offers usually enable access to lending policies and products not available to everyone. One example is the waiver of lenders mortgage insurance in some instances. Sometimes lenders charge a risk fee or insurance premium if borrowers do not have enough money or equity to cover 20% of the home value plus any costs. While these savings are appealing, borrowers still need to meet certain criteria before being offered any special policies.
14. There Are Special Loans For Veterinary Professionals
Qualified veterinarians can access products and policies designed for them. Different lenders have appetites for certain borrowers and a few lenders are trying to attract veterinarians. Benefits are available in both the home loan as well as commercial loan areas of the business.
15. There Are Special Loans For Accounting Professionals
Accountants are another profession lenders look to entice with attractive policies. Lenders will specify the type of industry memberships and professional roles being undertaken at the time of application. Not all accountants will need to utilise these policies, but they are certainly worth knowing about in case they can help in some way.
16. There Are Special Loans For Legal Professionals
Members of the legal profession can access favourable policies that might minimise costs for lower deposit home loans. These professionals have typically spent a lot on their education and professional development. Young legal professionals often have high income (or income potential) and lower deposits. Some lenders have policies to accommodate this, resulting in significant potential benefits to these borrowers.
17. They Can Access Promotional Offers
Like any offer there are terms and conditions that need to be understood if this is a key factor in the decision to choose a product. These terms and conditions are usually written in “bank speak” which mortgage brokers can decipher. Brokers are very informed when it comes to understanding segments of the home loan market that are being competed for with special incentives.
18. They Understand Loan Features
Mortgage brokers can take you to a lender with specific features—like multiple offsets.
19. They Have Access To Loans For Older Borrowers
This borrower segment will often have obstacles between them and a home loan approval that younger borrowers don’t. Older borrowers may need a more tailored solution. Mortgage brokers are able to gain a good understanding of the older client’s needs and consider more options than a home finance manager within a single bank can.
They Offer Convenience

20. They Can Meet You In Your Own Home
Forget an intimidating meeting at a bank with the finance manager, mortgage broker meetings are held around borrower needs. Meeting environments are comfortable and can be held a number of different ways.
21. They Can Meet In Your Office
Having a meeting in your office can be a great time saver.
22. They Can Meet You In Their Own Office
This can be incredibly efficient given distractions will be minimal. It will depend on what you need to get out of the meeting. This is usual when a loan analysis presentation might need a big screen.
23. They Can Meet You In A Cafe
This is great for an initial introduction or signing up a loan offer. Usually, any loan analysis is done in a quieter area using email, shared screens or similar.
24. They Can Meet Virtually
This is increasingly popular and both industry and consumers are adopting it in droves. This works well for online mortgage brokers who rely on a virtual process.
25. They Can Meet After Hours
This process is built around the borrower and their needs. Brokers can be very flexible—one advantage of not being stuck in a branch. Mortgage brokers commonly offer extended hours for assistance and meetings.
26. It’s An Efficient Use Of Your Time
One contact point can gain access to numerous lenders. Compare this to the number of meetings a borrower would need to gather the same level of information from individual lenders.
27. There Is One Consistent Contact Point
It is very likely your mortgage broker will be there for you throughout your home buying journey.
28. You Can Avoid Bank Appointments
Mortgage brokers hold the required authority to check borrower identification and perform other tasks for most lenders which is the main reason a branch visit is required. In most instances, borrowers avoid stepping into a bank branch completely.
29. They Can Offer Socially Distanced Interactions
Brokers were very quick to adopt technology for non-face-to-face interactions that are still compliant with bank processes. Bringing forward the use of technology for conducting virtual meetings has seen many archaic banking requirements removed for home loan applications.
How Do Mortgage Brokers Get Paid?

30. Banks Pay The Broker
A mortgage broker does not need to charge the borrower (in most situations) as lenders pay mortgage brokers for any business introduced to them. Everything is disclosed as part of any product recommendation.
31. Some Brokers Will Charge A Fee
This is something agreed to before undertaking a full assessment of a borrower’s position.
Fees may be charged for a variety of reasons. Sometimes loans for people who have a business ownership and given complex income streams can take more time to arrange than a typical home loan. Given banks generally pay mortgage brokers based on loan size, it becomes a commercial decision as to whether a fee is charged in certain scenarios. Importantly, the fee is agreed with the borrower early on in the process.
32. Mortgage Brokers Get Paid On Results
Talk about motivation. Mortgage brokers get paid on results— not just for turning up to work.
33. They Can Look After Their Clients For Life
The way mortgage brokers get paid motivates them to keep borrowers happy in their home loan. They mostly get paid two ways. Once is an upfront commission payment from a lender. This is paid after the loan they help organise has been established. The second payment is referred to as trailing commission. This is paid to the broker monthly based on the outstanding amount of the original loan owing. This is valuable to any broker business and as such, many businesses put time into their clients long after the original loan settled.
They Educate Their Clients

34. They Teach You How To Buy A House
In addition to sourcing a home loan for a borrower, a mortgage broker can help with all aspects of buying a house in Australia. From dealing with borrowers with and without savings to getting a loan approved for a successful house purchase, the sooner a mortgage broker is engaged the better.
35. They Can Prepare You For Auction
Mortgage brokers can organise a home loan pre approval. They can explain everything clearly to you and instruct you how to go about purchasing at a home open or auction. They can also talk about any risks and other advice you should consider prior to committing to a contract to purchase.
36. They Can Show You How To Save For A House Deposit
How much deposit do you need for a house? Understanding where your money goes is a great starting point. Brokers will analyse your living expenses as part of any loan assessment. There can be a lot to learn from this, namely expenses clients are unaware of. There are many budgeting apps that can assist with understanding and cutting down your expenses which can then translate to savings.
37. They Can Explain How Much Money You Need To Save For A House
Every borrower is different, just like each purchasing scenario. Some borrowers need big deposits and some don’t. Some have family help and some don’t. A mortgage broker can tell you how much money you need to save for a house. This will provide you with the perfect savings goal.
38. They Can Meet Early In The Home Buying Journey
Mortgage brokers can help you understand your current position now.
39. They Can Explain Expenses That Can Impact A Loan Application
Not all expenses are equal. Spending on food and groceries is not the same as regular payments committed to a purchase via Afterpay. A mortgage broker can analyse spending patterns and advise on how it might impact a home loan application.
40. They Can Explain Credit Scores
A credit score is an indication of your credit worthiness. In short, if you have several personal loans, this might indicate you spend before you save which has a negative impact on your credit score.
Banks and other agencies share information with each other about your credit and account activity. This helps them make better informed decision when it comes to applications for loans. If you regularly have payments bounce this could also impact you negatively. Using credit scoring services and budgeting apps to assist you in understanding your credit score can help you prepare better for a loan application in the future.
41. They Understand The “Language Of Banking”
Loans, terminology and contract wording can be confusing. Mortgage brokers can help you decipher “bank speak”— the language of loans and banking. They are well placed to answer your questions and guide you through the process.
42. They Understand The Loan Offer
Brokers can interpret the language and terms lenders use. Loan approvals and loan offers can be difficult to understand and are a common source of errors, which can cause time delays. Broker experience ensures this is minimised.
43. They Can Collect The Documents Needed For A Loan Application
This can be the most time-consuming part of the process. A home loan documents checklist can usually cover most items needed for a home loan application. Documents collected enable a mortgage broker to make an informed assessment and then make an appropriate recommendation.
44. They Manage The Home Loan Approval Process
The loan application is a mortgage broker’s key role. They make an assessment as to the borrower’s loan eligibility and then make product recommendations. They then get the appropriate borrower consents and make the application to a lender. Good brokers get a very high proportion of approvals. This is something you might like to ask the broker about in your initial meeting.
45. They Have Property Valuation information
Many mortgage brokers have valuation tools that can assist borrowers get an idea of their own property’s value. It might also act as a guide for borrowers looking to make an offer on a property.
They Are Professionals

46. They Are Qualified Professionals
The regulator ASIC requires mortgage brokers to gain at least a Certificate IV in Finance and Mortgage Broking. Many have taken it further and gained a Diploma of Finance and Mortgage Broking Management. These qualifications, together with mentoring and work experience is how to become become a mortgage broker.
47. They Are Professionals In Loan And Property Structuring
Headline interest rates get all the attention but the excitement of a good rate needs to be tempered with the ideal loan structure. This is an often overlooked and misunderstood part of what good mortgage brokers are able to assist with.
48. They Are Specialists
Some mortgage brokers might specialise in home loans for people working in particular industries like mining or legal. Others could focus on borrowers who earn their income via complex business structures. An initial discussion with a mortgage broker will be helpful in matching income structure with broker skills.
49. They Liaise With Other Professionals For Clients
Given money is central to property and business transactions, mortgage brokers are pivotal to this process and need to be excellent communicators. They will often liaise with accountants and financial planners to arrive at the most suitable possible loan structures.
50. They Are Experienced And Knowledgeable
In order to gain the experience needed to be recognised by industry bodies, a mortgage broker will need to have active mentoring for at least two years before being able to advise on their own.
51. They Have Bank Policy Knowledge
There are differences between lenders that aren’t always obvious at the surface. An in-depth understanding of lending policies and the home loan approval process at different banks allows mortgage brokers to offer a choice of lenders to potential borrowers.
52. They Understand Their Clients
There are people and stories behind every loan application. It is not just a form-filling exercise for them to get through and move onto the next customer. Brokers understand there are people, families and dreams attached to any loan application.
53. They Know When To “Press Pause”
A declined application can have a negative impact on a borrower’s credit score. What is not often discussed is the importance of recognising a weak application and pressing pause on the process. Rather than see a weak application get declined by a lender, applicants can instead get into a stronger position over time. This way they stand a better chance of an approval when they are ready. Good mortgage brokers do not submit weak applications. Instead, they recognise it, call it and get potential borrowers ready for when the time is right.
54. They Get It Right From The Start
Sometimes the easy part is getting the loan established. It is not until a borrower decides to sell a property that they might realise the loan structure was set up in the banks’ favour, not theirs. This is part of the broker having your best interests as their priority.
55. They Arrange Loans For Non-Individuals.
Entities like trusts and companies are often used for different reasons, mainly investment. Not all lenders can accommodate these applications.
56. They Understand Market Trends
Mortgage brokers are at the coalface of home lending and see first-hand how lenders respond to consumer’s needs and wants. This usually results in new products and even new lenders. A trend that lenders are paying attention to currently is around the sustainability values of borrowers.
Finding A Mortgage Broker

57. Mortgage Brokers Near You
Mortgage brokers can be large corporates with commercial office presence, a sole trader working from home or anything in between. They will usually engage clients with an initial discussion which is a great chance to get feedback on how they can help you.
58. Online Mortgage Brokers
Mortgage brokers can be relatively large online companies. Sure, there are people behind them, but they have big systems and wide reach. They tend to invest heavily in finding clients online and then once they have done some preliminary assessments, there is usually the option to perform higher-level bespoke assessments if the proposal is not straightforward.
59. Mortgage Brokers Are Often Small Business Owners.
You can support local.
60. How To Choose A Mortgage Broker
You can choose a broker based on recommendations or word of mouth. Interview them and build a working relationship based on trust.
61. How To Recognise A Dodgy Mortgage Broker
There are some mortgage broker red flags to look out for. Make sure you know who you are dealing with and that they are accredited.
They Can Reduce Your Workload

62. They Can Reduce Paperwork
There is no need for borrowers to reinvent the wheel, this is what mortgage brokers do. They will take your documents and the information from discussions to prepare a recommendation. Paperwork will usually be pre-filled and ready to review and sign, complete with the rationale for the choice.
63. They Can Save You Time
Research takes time and so can mistakes. This is where engaging a professional is worth it.
64. They Adopt Technology
Mortgage brokers have been quick to adopt technology. DocuSign and Open Banking have paved the way to improve the home loan approval process. This is despite the ever-increasing compliance requirements. Less paperwork is one thing, less paper use is the goal.
Your Professional

65. They Are Professional And Informed
Borrowers can learn from a licensed and educated source rather than fear-stoking articles such as:
– How your Netflix subscription could affect your loan application
– Afterpay is preventing young Australians from getting a loan
– Planning on having a baby? It could prevent you from buying a home
While the above titles are fictitious, I have no doubt you will have scrolled passed a few of these. All have merit but need context. One headline or article is no substitute for personal professional credit advice.
66. They Work With A Real Estate Agent For You
The real estate agents’ job is to present a seller with the strongest offer. They need to also qualify the strength of your offer. Your mortgage broker can discuss the merits of your financial position with the real estate agent and provide them with the confidence that the finance will be attained.
67. There Is Required Professional Development
Minimum hours are required to be completed each year for mortgage brokers. This ensures already high standards are maintained. Some industry bodies require more hours than prescribed by the regulator ASIC.
68. They Work With Your Accountant
Mortgage brokers who can read financial statements add real value to a client. Working with accountants carries great potential to improve the financial position of their mutual client.
69. They Work With Your Property Buyer.
By obtaining a pre-approval, you are ready to buy. It is now just a matter of finding a property to suit you. The property buyer’s agent now has a very strong prospective buyer to present on any offers.
70. They Work With Your Solicitor.
This is especially helpful in the case of a relationship breakdown. It often involves the transfer of property from one party to another and requires a loan application to support the new situation.
71. They Work With Your Conveyancer
Good communication is everything. Conveyancers are an important part of a property transaction. Mortgage brokers work closely with conveyancers to ensure deadlines are hit.
They Are An Interest Rate Negotiator

72. They Negotiate Low Home Loan Rates For New Loans
What you see promoted by lenders is not always what borrowers end up with. Your broker can approach several lenders to negotiate the interest rate for your scenario. It is important to understand the advertised rates are not necessarily what borrowers are receiving. Remember, if you don’t ask, you don’t get.
73. They Negotiate Low Home Loan Rates For Existing Loans
Long after your loan has settled, there can still be room to move on your rates. Sometimes refinancing to another lender is not a preferred option but your mortgage broker might have the tools to improve your rate for you. Any savings achieved will be significant when calculated over the life of the loan.
74. They Can Negotiate Home Loan Refinancing Offers Like Cashback Incentives
Lenders will often pay borrowers to move their lending to them. Cashback incentives were initially introduced to cover fees incurred when moving lenders. Now they’re often used to attract more customers to a bank. This is often in addition to low rates. Customers can sometimes access thousands of dollars in incentives.
75. They Reward Equity
Brokers can source lenders that reward borrowers with a lot of equity. For example, if you only owe 50% of your property value, many banks offer better rates compared to borrowers at the 80-90% level.
76. They Can Get A Lower Rate On Home Loan Refinancing
This is where the mortgage broking industry has made a great name for itself. Borrowers are one call away from understanding where they sit in the home loan market. Chances are that if they have been with a lender for a few years, their rate could be behind the rates for new lending. If you work with a broker to determine that refinancing is a good option, then your loan will be considered “new lending” at a new bank. This way you get all the benefits new customers get that loyal borrowers seem to miss out on.
They Are Relationship Focussed

77. They Are Personable And Relatable
Many brokers are small business owners and are in it for the long haul. Relationships are everything.
78. They Offer After-Settlement Support
Brokers are generally relationship focussed, not transaction focussed so if borrowers need assistance over the life of their loan, they can still use their broker.
79. They Are Proactive
Good mortgage brokers keep a detailed list of clients so they can proactively communicate any relevant bank policy changes. A thorough initial assessment means brokers are clear in their client brief and can quickly recognise when they need to be on the front foot.
They Are Transparent

80. They Are Governed By Industry Oversight
Industry oversight to protect the consumer is performed by the Australian Securities and Investment Commission (ASIC). All they ask is that mortgage brokers run a transparent business. There should be no hidden surprises for the borrower if guidelines are followed. This is good for business and good for borrowers.
81. They Offer Clear Records For Borrowers
Clear and concise records are important. Bank applications can be short on detail as so much is transmitted to lenders electronically. Mortgage brokers will happily disclose all the information to borrowers at the time of application so that they can make an informed decision. This is a very important requirement from a compliance perspective but also just good communication and business practice.
82. Compliance Means Transparency
Borrowers should know everything when it comes to putting their signature to any loan application paperwork. They should know:
- Lenders used most in the past 12 months
- Any significant gifts or entertainment incentives received from lenders
- Who gets paid
- How much they get paid
- Costs and fees
- Home loan rates, terms, repayments
- Detailed records of any recommendation and reasons
- Alternative options considered
- Final product and lender recommendation
The above is not an exhaustive list but borrowers should find that after dealing with a broker there is not much they won’t know about the process.
They Find Solutions For Borrowers

83. They Can Help With Buying A House
If you are wondering how to buy a house and you need a home loan, then engage a mortgage broker sooner rather than later. There is a lot to consider in addition to the finance requirements. By approaching the home buying journey methodically and with purpose, you can help keep things in check.
84. They Can Help Refinance A Home Loan
Mortgage brokers know how to refinance a home loan from start to finish. If you are eligible for a home loan approval, you can be presented with some loan options suited to what you want to do and where you want to go. This is a big process that many brokers have perfected.
85. They Can Help With Buying An Investment Property
Investment property loans could be used for this purpose. Some buyers will buy an investment property before they purchase their first home. These are a popular wealth creation strategy due to tax treatment and the extra income generated from rent. Interest rates for investment property can often be higher than owner-occupied home loans, so this is a consideration for potential investors.
86. They Can Help With Buying A Holiday Home
This can offer lifestyle opportunities, holidays on tap and short-term rental opportunities.
87. They Can Help With Buying Property As An Expat In Australia
If you want to buy a home while in Australia and are not a permanent resident, you need to consider a few things when buying. Will you need to sell the property when you leave Australia? Will you have more costs imposed on you when you buy because of your residency status? Will you be able to borrow from a local lender? Depending on your individual circumstance, you may need Foreign Investment Review Board approval.
88. They Can Help With Buying Property In Australia While Overseas
If you need a home loan to purchase a property in Australia while residing overseas, this is generally accepted if you are an Australian citizen or hold a permanent residency. If you do not fall into these categories but borrow with someone in the above categories, lending may still be possible. Generally, lenders will want a larger deposit and extra verification of your income. Depending on your individual circumstances, you may need Foreign Investment Review Board approval.
89. They Can Help Finance A Renovation
Whether you are considering adding a garage or a second story, a mortgage broker can determine the most appropriate way forward.
90. They Can Help Secure Land loans
These loans can secure the land while you draw up plans for your dream home, investment or even holiday home.
91. They Understand Construction
Getting the loan for your new build can sometimes be the easy bit. Brokers often continue to assist after the home loan approval by helping with the builder payments and ensuring there is no shortfall at the end of the project.
92. They Can Help Secure Business Finance
Mortgage Brokers skilled in this space can help their clients arrange start-up business loans. Some borrowers might want unsecured business loans, they may want to buy into an existing business or they may want to expand their business.
93. They Can Help You Buy A Car
Your home can be used as a source of finance as opposed to a typical car loan. This is something you can discuss with a mortgage broker.
94. They Can Help Finance Your Dreams
If you have equity and are willing to use it, then you can discuss this with your mortgage broker. There are many ways in which to use this equity to have fun, invest and achieve your goals.
95. They Can Help With Pre approval
A pre approval is a loan approval with conditions, the biggest of which is usually that the lender needs to be satisfied with the property the borrower eventually finds. Brokers can assist with this process so that buyers are in as strong a position as they can be.
96. They Can Help With Avoiding Paying Lenders Mortgage Insurance
If your deposit is less than 20%, you might pay lenders mortgage insurance as part of your loan fees. It is a significant fee often in the thousands designed to protect the lender from risks associated with many low deposit loans. When considering how to avoid mortgage insurance, some lenders offer waivers. It is very category-dependent based on lenders preferences for profession, property or first-time buyers to name a few considerations.
97. They Help Prove Genuine Savings
This is different from savings as many people know it. When looking to purchase a house, this hurdle is more around money behaviour for some home loan approvals. For low deposit home loans, lenders might ask to see your accounts to prove that funds for your deposit have been held in your account for more than three months.
98. They Help Give Advice On Government Initiatives
Mortgage brokers can assist with various government home buying initiatives. There are often a limited number of places available in these schemes. If your bank has run out of their allocation, a broker might be able to access a place at another lender. An example of this is the first home loan deposit scheme supporting first home purchases with smaller deposits.
99. They Can Help Secure A Guarantor Home Loan
The cost of buying a house can be an expensive exercise so if family are able to help, then some lenders have guarantor home loans available. If buyers are short on the deposit required to buy a house, these loans can use another property owned by the guarantor. Guarantor loans can get buyers into a position where buying a house is a possibility sooner.
100. They Can Help With Low Deposit Loans
Small deposits might not suit every lender as they are often classed as a higher risk lend. This can come with higher fees and rates as well as extra hurdles in the home loan approval process. Mortgage brokers can advise on low deposit loans.
101. They Can Help With Commercial Property Loans
This is an area of specialty in Mortgage broking and banking.
102. They Can Help With Personal Investment
Brokers can arrange loans to provide the funds for buying shares, ETFs or similar.
103. They Can Help With Home loans For The Self-employed And Business Owners
Finding home loans for self-employed borrowers is often seen as being difficult. Sure, there are hurdles but keep in mind these borrowers just need to prove they have spare income from their business to pay for a home loan. Good mortgage brokers can work with these customers to find finance solutions for self-employed.
104. They Can Help With Loans For Temporary Residents
Mortgage brokers can arrange loans for some visa holders in Australia. It will depend on the category of visa. Banks vary in their acceptance of this type of borrower.
105. They Can Help With Property Development
Mortgage brokers can assist with financing a property development.
106. They Can Help With Property Subdivision
Mortgage brokers can assist with property subdivisions.
107. They Can Help With Family Property Transfers
Brokers can assist with transfers of ownership within a family. These transactions are off-market and particular attention needs to be paid to the value changing hands and how a lender considers this as part of the home loan approval process.
108. They Can Help Finance Further Education
If you have equity in your home, you could use this to finance further education.
109. They Can Help Finance A Swimming Pool
This might add to your home loan but be a lifestyle win in the long term.
110. They Can Help Educate On Offset Accounts
These can be fantastic additions to any home loan product, however many borrowers who have them do not understand offset accounts or are not using them properly. Be sure to understand how they work and if they are suitable for your circumstances.
111. They Can Help Secure Variable Rate Home Loans
These loans offer great flexibility to overpay your loan as well as set up additional interest rate reduction strategies like offsets. Whether or not this is a suitable strategy depends on the assessment of your objectives for your home loan.
112. They Can Help Secure Fixed Rate Home Loans
These offer certainty. Sometimes fixed rates are higher than the variable rate and sometimes they are lower. Either way, they are a product that generally offers more certainty than flexibility. A mortgage broker can assess the appropriateness of a fixed loan for your situation.
113. They Can Help With A Split Home Loan
A split home loan is typically part fixed and part variable rate home loans, offering both flexibility and certainty. Part of setting up a home loan is understanding the client‚ not just selling a product. Establishing a product that aligns to borrowers’ goals and objectives is important.
114. They Can Help Educate On Principal And Interest Repayments
This repayment strategy helps reduce the debt by making reductions to the outstanding loan balance in addition to paying the interest charge each month. Borrowers can adjust the frequency of their repayments which can often have a significant impact on the time taken to repay the loan as well as the interest paid over the life of the loan.
115. They Can Help Educate On Interest-Only Repayments
There are a few reasons borrowers adopt this strategy. They need to be very clear on their approach to this repayment option as the interest rate for this type of repayment can be higher compared to principal and interest rates. It is often a repayment strategy adopted by investors.
116. They Can Help Educate On Interest-Only Repayments Versus Principal And Interest Repayments
It requires analysis to determine the most suitable repayment type for a borrower. There can be valid reasons for paying only the interest on a home loan but rates for this type of payment are less attractive than loans which include principal repayments as well.
117. They Can Help Keep a Good Loan Open
Mortgage brokers do not always need to arrange a new home loan to help their clients. Sometimes they move home loans from one property to another without the need for a new home loan application. It is a process called security substitution or home loan portability.
Final word
Mortgage brokers have specific roles in helping borrowers deal with lenders. As this guide demonstrates, their skill set is wide-ranging. Given their experience can be varied, it pays to ensure you find a mortgage broker you trust and are suited to.
More than anything, be proactive in ensuring you understand your lending situation.