Finance brokers are often viewed as providers of comprehensive, convenient and professional credit advice to consumers. They represent a panel of lenders and offer customers a range of mortgage products matched to specific needs. Brokers offer choice and enhance access to credit (especially to those in rural and regional areas) and create healthy consumer competition. They also help provide enhanced lending information that is suited to their individual needs.
Quick fact: 90% of consumers were satisfied with the service provided by a broker (Deloitte report 2016)
Often, brokers are personally recommended by their existing clients and their remuneration normally comprises incentives and commissions paid by the lender rather than the borrower.
Quick fact: In the past five years, consumer use of brokers has grown by 27% to 59.1% market share, proving the value of the broker model (MFAA Industry Intelligence Service Report, 7th edn.)
Before making your choice between going directly to a lender and using a broker, consider the following: -
Your broker has been through this process countless times before and they generally have existing relationships with multiple Lenders. They can help you through the maze of paperwork and compliance information required to obtain a loan. They can also follow up the Lender on your behalf making the process easier and more accurate.
Loan products are often complex and difficult to understand. Brokers usually represent multiple lenders options and are familiar with a broad range of product offerings. This knowledge means that your broker can recommend products that are aligned with your personal requirements and may even be able to negotiate a better deal than you could as an individual. Consider choosing a broker who specialises in the type of loan you’re seeking e.g. investment, home loan or commercial.
Focus on you, the customer
Your broker likely owns his/her own business and their success depends on their commitment to customers—because it is often their clients who recommend new customers. It’s like having a personal lender who knows what needs to be done and is in it for the long haul rather than dealing with an employee of a large company where roles can often change.
The MFAA is the largest peak national body for professional mortgage and finance brokers, mortgage managers and aggregators in Australia
Our finance brokers operate within a professional code of conduct that supports the alignment of the retail mortgage market with consumer trust and confidence.
For more information please visit our Mortgage and Finance Help site, created for consumers and find a broker in the best location for you.