In Australia, most of the people would seek the help of a mortgage broker at time of purchasing that dream house. According to the statistic, more than 50% of the home loan are being underwritten by the mortgage broker.
Now, we will share with you our two cents thought on the roles of a mortgage broker; the licensing requirement; and what constitutes as a value added mortgage broker.
At the moment, Australian Corporate Watchdog – ASIC is the regulator for the licensing of the Mortgage brokers, this regime had been in place since 2014.
The compulsory licensing of the mortgage broker is introduced with the aim of uplifting the quality standard of the industry, hence to have a positive flow on effect to the general consumers.
In order to obtain a license from the ASIC, the mortgage broker can either becomes an authorized representative of a dealership group, or he/she can obtain their own credit license. However, both channels require the mortgage broker to pass an exam; have a minimum of 2 years of experience in the credit industry; familiar with the different credit products and policies; attends many sessions with different banks to gain their accreditations, and to become a full member with one of the two professional bodies, being MFAA or FBAA.
The difference between an authorized representative under a dealership group and one who holds a direct credit license is the number of credit products which he/she can offer.
Under the own credit license regime, you have the flexibility to become accredited with different lenders, accessing a broader range of credit products. Under the structure of authorized representative, you might be restricted by the number of approved credit products as prescribed from your dealership group, hence limiting the range of credit lending products can be offered to the consumers.
A lot of people think mortgage broker is just an intermediary between the bank and the person who wants a home loan, and the benefit of using a mortgage broker is simply getting THAT HOME LOAN to facilitate the purchase of that dream house. It is just so easy to visit one mortgage broker who can compare the different credit products and select one which is most suitable to the consumer. It is an important feature and benefit, however, a good or excellent mortgage can offer more, more in a sense rather than an once off deal, we can offer an ongoing relationship to ensure your home loan not only has the lowest interest rate at the settlement, but it will also enjoy a low interest rate in the market place in the future.
A good mortgage broker will not only help you to select a good home loan product with lower interest rate, and lower fee, but it should also keep an ongoing relationship with you, and assist you with the ongoing maintenance of your home loan, and perform an annual review. Just like your garden, when you purchased that house, the garden might look very nice, but it takes time and effort to ensure that it is maintained in a tip top position.
At EndureGo, not only can we help our clients to settle the loan, but we will also maintain an ongoing relationship with our client, and perform an annual review of the home loan to ensure it is at the optimal condition on a yearly basis, optimal in a sense that the interest rate is still at the lowest, the structure is still sound for the taxation purpose in term of negative gearing and capital gains tax, and the outstanding loan balance is still within the client’s expectation of repayment timeframe.
EndureGo Finance can also provide service to our clients in that we will help them to speed up their repayment time frame. we will work with our clients and ask them how soon they would want to repay off the home loan, and then we will work out a realistic goal with them in how the home loan can be repaid. Part of the strategies are to quantify the extra monthly loan repayment, or the additional amount to be put into offset account. Every settlement anniversary, we will get the clients to come in to the office, and evaluate their repayment record, and to make sure that they are on the right track in repaying off the home loan on time.
To a lot of people, purchasing a house is the biggest investment one would make in a lifetime, and once you get a home loan, it will accompany you with some years to come, hence why don’t you want to talk to EndureGo Finance and let us become your mentor in making you to repay off the home loan effectively and efficiently.
Come and talk to us on 0403-418-758, or email us on firstname.lastname@example.org, ask for Cindy, and our team of professionals will help you to lower your monthly loan repayment and ensure that you repay off your home loan earlier to start on the journey to make sure you own your house earlier.