1. What set of lenders do you have as a mortgage broker on your lending panel?

Make sure the broker you’re dealing with is a mortgage loan broker or mortgage planner who has access to a variety of lenders rather than a mortgage broker who only represents one lender and that lender’s range of products.

2. What is the best type of home loan that would fit my cash flow cycle and financial structure?

Make sure the refinancing mortgage broker or mortgage planner demonstrates how the specific type of mortgage loan will support your financial structure and maximize the use of your cash flow. It is vital that the method in which loan payments must be made does not limit the effective use of your cash flow in order to minimize the amount of interest payable on the mortgage loan.

3. Is it better to focus on the mortgage products with the lowest mortgage interest charge?

If the answer is an explicit yes, ask why and proceed with caution. There is nothing wrong with cheap home loan interest rates as long as the lender shows a track record of cheap interest rates and established financing! Mortgage products that seem to offer a great deal may include high penalties, fees and costs, or may not offer the versatility of use that you need in the future. To avoid selecting a loan you may later regret, treat a recommendation that focuses primarily on low interest rates with caution.

4. What are the best home loan products for my immediate circumstances and goals, and how will they support any future plans I may have?

Make sure the Mortgage Loan Brokers proposal consists of no less than 3 home loan products showing fair comparisons between the products. Beware of a comparison that includes 1 product that seems to be much better than the other 2! Look for product features and product versatility that will allow you to tailor your home loan product to meet your ambitions and future plans.

5. In addition to the fees and charges associated with the new home loan, what other fees and charges are you likely to incur?

Financial institutions, service providers and government departments often charge costs related to the financing procedure and can often be an expensive surprise for the unwary. A valued home loan broker or mortgage planner will provide you with a loan cost sheet detailing all of the costs, charges and fees associated with the early home loan procedure.

6. How are you paid and what is your commission agreement?

Requesting a written explanation of how your service provider is paid for their act will help you recognize and reduce conflicts of interest. If the suggested lender’s commission is by far the highest compensation of all credit providers on the broker’s lender panel, proceed with caution as this may present a conflict of interest.

7. Do you provide your potential clients with a Mortgage Brokerage Agreement?

Not all mortgage broker refinancing services are accurate in what they offer versus what you want as a final product. Therefore, it is strongly recommended that a mortgage brokerage contract be drawn up between the parties outlining the scope of services/products to be offered and the payments associated with the work.

8. Do you do annual reviews for FREE and what extra services do you provide?

Find out how eager the broker is to stay in touch with you and confirm that your loan is meeting its objectives satisfactorily. What additional services does he or she provide, either directly or by referral, that could possibly be of benefit to you and are there savings available if you combine these services with your mortgage?

9. Where can I go if we have a disagreement that cannot be resolved?

Do you offer an External Dispute Resolution Service (EDRS)? Ask the service provider to clarify the complaint process your business offers, outlining who you can file a complaint with and which EDRS they are a member of. A worthwhile refinancing mortgage broker will provide you with a personalized financial services guide at your initial meeting that will outline all the details of your complaint process, as well as your mortgage brokerage agreement.

10. Are you an MFAA Certified Mortgage Broker?

When dealing with a broker who is a certified member of the MFAA, you are doing business with a person who has met the minimum standards of education, experience and ethics to maintain their membership.