Being a mortgage broker is a lot like being a marriage broker.
There's this bride looking for a husband. She wants a husband for life; not just for the next few months.
To avoid making a mistake she consults a reputable marriage broker.
The broker knows all of the available suitors. She's dealt with them before.
This one might have plenty of gold and jewels but he's also pushing ninety. This one is tall, dark and handsome but he's as poor as a church mouse. This one is both rich and handsome but he has a history of leaving broken hearts wherever he goes.
The marriage broker's job isn't to recommend the first man to come along. It certainly isn't to recommend the one that is paying the largest amount of money and it isn't to recommend someone that is destined to be a disaster.
The happy ending to the story is obviously an ending where everyone is happy.
Finding the right home loan can be a very similar story.
Firstly, a good mortgage broker knows who to call and generally knows which banks or which lending institutions are likely to suit the property buyer's situation. (There are dozens of different banks and lenders offering hundreds of different home loans).
The broker (after doing their homework) then recommends two or three banks (or lenders) to the property buyer and explains the features and benefits that are available with these loans. One lender may offer a redraw facility, and another may let you pay off the loan quicker without any penalties, another might be willing to talk to self-employed people. Every lender offers different benefits and facilities.
In the past, if you got all the benefits then you usually paid a higher interest rate but these days the banks and lenders are very competitive. There are some amazing products out there but no two are alike. My job is to find the right home loan that meets all of my client's needs and wants.
It's just a matter of knowing where to shop. The mortgage broker then helps to set up the loan. This might be quite straightforward or it might be complex. It might take a couple of days or it may go on for weeks.
The first thing I do is find out EVERYTHING that I need to know about my client (and their financial situation). I expect them to be completely honest with me and I'm completely honest with them. (My business is to organise & obtain finance... it's not PR).
I work for my client. I don't work for the banks or lenders. Sure the bank writes me a cheque when the deal is done but my clients? interests take precedence over everything else. Nothing that I do is hidden or below the table. My clients always know who is paying me and how much.
So my advice is: choose your mortgage broker wisely then listen to their advice.