Mortgage Brokers Gold Coast

Mortgage brokers on the Gold Coast

Sun, surf, sand—the Gold Coast has it all. Its growing population makes it Australia’s sixth largest city and largest non-capital city. With its property market becoming more competitive, buyers looking to secure finance may consider a mortgage broker that’s local to the Gold Coast. More generally, as Australians navigate changing interest rates, it’s become important to shop around for the home loan. There’s certainly a wide range of home loans to choose from. Canstar’s database of home loan providers extends to over 90 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 mortgage brokers don’t work with every lender in the market.

Compare Home Loans

How does a mortgage broker work?

A mortgage broker acts as an intermediary between borrowers and lenders. Your broker will start by identifying your needs and financial goals, and advise if you’re in a position to take out a home loan. The broker will then recommend suitable loans from a range of lenders they work with.

The key point of appeal for many borrowers is that a mortgage broker will assist you in completing a loan application and will submit it to the lender on your behalf. 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 Queensland’s First Home Owner Grant, 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, don’t 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 broker 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.

Advertisement

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 don’t 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 can receive two types of commission from lenders:

Upfront commissions

Brokers typically receive an upfront commission from the lender providing the home loan when they successfully sign up a customer to a mortgage. The amount of the commission varies depending on the lender. As the borrower, you don’t have to pay any of it.

Trail commissions

Trail commissions are usually smaller than upfront commissions, but are paid out periodically. In some cases, a lender will pay a trail commission to a broker for each year that a borrower remains a customer.

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 your search by asking friends, family or work colleagues for their recommendations. Online reviews can also be useful.

Referrals and reviews can be especially helpful if you’re 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 who has experience in construction loans. The Federal 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.

Questions to ask a mortgage broker on the Gold Coast

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:

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, such as acting 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’re paid in the form of commissions and other perks from banks and lenders. You may wish to ask your broker how they’re 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. A broker may have a small number of quality options for you or a large number of unsatisfactory ones.

Do they favour a particular lender? If a mortgage broker sends the greater proportion of their business to one particular lender, you can enquire as to why this is, and if they’re rewarded in some way for doing so. Even though brokers are required to act in your best interests and offer you suitable home loan options, you may be concerned that there’s an even better deal out there that you’re missing out on.

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 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 ensure 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 provides after your home loan has settled, as it can help you remain confident that your ongoing loan needs will be met.

Compare Refinance Home Loans