Sun, surf, sand – the Gold Coast has it all, along with a growing population that makes it Australia’s sixth largest city. If you’re looking to buy property there, a Gold Coast mortgage broker is one option for securing finance.
Plenty more growth is expected on the Gold Coast in the years ahead according to the city’s council, so competition for properties could well be high. Buyers looking for support with the financial side of things may consider a mortgage broker that’s local to the Gold Coast and might be able to help get a deal across the line.
More generally, as Australians navigate higher home loan interest rates, it’s become especially important to shop around for the home loan that’s best suited to your needs. There is certainly a wide range of home loans to choose from. Canstar’s database of home loan providers extends to over 130 different lenders. A mortgage broker can be helpful in narrowing down the range of options for borrowers. However, it still pays to do your own home loan research. As we’ll see, mortgage brokers don’t work with every lender in the market.
How does a mortgage broker work?
A mortgage broker acts as a middleman or woman between borrowers and lenders. Your broker will get the ball rolling by identifying your needs and goals, and advise if you are in a position to take out a home loan. From there, the broker will recommend suitable loans from the range of lenders they work with.
The key point of appeal for many borrowers is that a mortgage broker will do many of the hard yards on your behalf, helping you complete a loan application and submit it to the lender for you. They will also liaise with you and respond to any queries the lender may have.
Your mortgage broker may even go the extra mile and help you apply for schemes like the First Home Owner Grant QLD, which is available to eligible applicants buying property on the Gold Coast.
How many lenders can I access through a Gold Coast mortgage broker?
Mortgage brokers on the Gold Coast, as elsewhere, do not work with every lender in the market. Rather, they help you find a home loan from the selection of lenders they partner with – known as their ‘panel’ of lenders.
The number of lenders on a broker’s panel varies widely. The big mortgage broking franchises can have over 30 different lenders on their panel, with some also offering their own brand of home loans.
Smaller brokers may have as few as 10 lenders on their panel, which would significantly limit the range of lenders and loans you have access to. However, a smaller broker may offer a more personalised service, niche advice for specific kinds of borrowers and strong knowledge of the local market.
How much does a mortgage broker on the Gold Coast cost?
The services of a mortgage broker shouldn’t cost you anything. That’s because brokers do not usually charge a direct fee to customers. Instead they are typically paid a commission by the lender you choose when you successfully apply for a home loan.
Mortgage brokers on the Gold Coast, and elsewhere, can receive two types of commission from lenders:
Upfront commissions
Brokers typically receive an upfront commission from the bank or lender providing the product when you first take out a home loan.
How much the broker receives depends on the lender involved. Using a hypothetical example, if a lender pays a 0.5% commission and your mortgage broker signs you up to them for an $800,000 home loan, your broker would make a commission of $4,000 upfront. Remember though that you, the borrower, don’t pay this. The commission is paid by the lender.
Trail commissions
Trail commissions are usually smaller than upfront commissions, but are paid out periodically. In some cases, a bank or lender will pay a trail commission to a broker for each year that a borrower remains in a home loan.
How do I find the best Gold Coast mortgage broker?
Close to 3,000 mortgage brokers operate across Queensland, so there should be ample choice for borrowers in the state’s second largest city, the Gold Coast.
You can narrow down the search by asking friends, family or work colleagues for their recommendations of a mortgage broker in your part of the Gold Coast.
Referrals can be especially helpful if you are looking for a broker with particular experience – for example, working with borrowers who are self-employed or advising borrowers who hope to buy a home with a low deposit. Or, in this rapidly growing city, you may prefer a mortgage broker on the Gold Coast who has experience in construction loans.
Online reviews can also be a useful tool to check if a mortgage broker has delivered on their promise of great service.
The Australian Government’s Moneysmart website also suggests that those who are in the market for a mortgage broker can search for one through a professional association. The Finance Brokers Association of Australia Limited (FBAA) and the Mortgage & Finance Association of Australia (MFAA) both have websites with searchable databases of licensed brokers, so you can find one in your local area.
Questions to ask a mortgage broker on the Gold Coast
Canstar has a detailed list of tips on how to find a good mortgage broker. There are a number of key questions you might consider asking to find out if a broker is the right person for the job. You may ask a broker:
Do they hold a licence? It’s important that anyone doing business as a mortgage broker in Australia is licensed to give credit advice. Licensed brokers are bound by statutory duties, and foremost among these is a duty to act in the best interests of their clients when recommending loan products. If you’re wondering whether a broker is licensed, you can enquire with a professional body such as the FBAA or MFAA.
How do their fees and commissions work? Mortgage brokers in Australia typically do not receive upfront payment from clients. Instead, they are paid in the form of commissions and other perks from banks and lenders. You may wish to ask your broker how they are paid, and if certain lenders offer more attractive remuneration than others.
How many lenders do they deal with? There is no hard and fast rule as to how many lenders should be on a broker’s panel – indeed, a broker may have a small number of quality options for you or a large number of unsatisfactory ones. Even so, you may feel that the more lenders a broker deals with, the greater the chance that they will find you a suitable home loan deal.
Do they favour a particular lender? If a mortgage broker sends the greater proportion of their business to one particular lender, you may wish to know why, so you can enquire as to why this is, and if they are rewarded in some way for doing so. Even though brokers are required to act in your best interests and offer you a suitable home loan option, you may be concerned that there is an even better deal out there that you are missing out on if your broker favours just the one lender.
What is their ownership structure? When assessing a mortgage broker, it may be worthwhile asking if a major bank or lender has an ownership stake in their business. You may be concerned that the broker will try and direct your business to this particular institution, causing you to miss out on an even better home loan deal if one is available elsewhere. Likewise, it may be important to you to know that your broker is independent.
What post-settlement services do you provide? Mortgage brokers on the Gold Coast will be keen to help you organise a home loan, but for some, their services don’t end there. Some brokers go a step further by conducting an annual review of your loan to be sure it still meets your needs, and may even contact the lender on your behalf to negotiate a rate discount. It’s worth asking what sort of service your broker will provide after your home loan has settled because it can help you remain confident that you have the loan that meets your needs into the future.
If you are thinking about refinancing your home loan and want to find out which loans you may be eligible for, Canstar’s eligibility checker tool can help you understand your options and connect you with a mortgage broker.
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