Sydney mortgage broker 101
If you are thinking about purchasing a home or other piece of property in Sydney, you will eventually need to hire a Sydney mortgage broker, and one of the best tips to finding a good Sydney mortgage broker is to know a little bit about what they do before making your decision.
When it comes to purchasing a home, there is a wide variety of loans all with different features available, and trying to decide which the best type of loan is may be a little confusing. However, a good local Sydney mortgage broker acts as an intermediary between you (the purchaser) and the bank or lending institution to help ensure that you get the best type of loan for your particular situation.
National consumer credit protection act
In 2010, the National Consumer Credit Protection Act was established to help protect borrowers and ensure that those working in the finance industry met certain ethical and professional standards. To protect consumers from unethical mortgage brokers, the responsible lending obligations were put in place. These obligations require a broker to:
- Inquire about the consumer’s financial situation, objectives, and requirements in relation to a credit contract.
- Use the results of these inquiries evaluate whether a loan is suitable for the consumer and not move forward if the product is unsuitable.
- Give a copy of the assessment to the consumer upon request.
Assess your financial situation
A good Sydney mortgage broker will spend some time talking to you about your current circumstances and your needs. This will help them determine which the best type of loan is for you.
To help with the assessment, you will be asked to provide documents to help support your financial situation and identity. These documents should include a 100 point checklist for identification, bank statements, tax returns, any outstanding loans, pay slips, and any other financial statements you may have.
Once your Sydney mortgage broker has a good idea of your financial situation and your objectives, they will tell you about the various loans that may be available to you.
Find a suitable loan
The next thing a Sydney mortgage broker will do is search their database to find loans that may be suitable. A typical database contains hundreds of different loans from numerous lenders and is updated constantly.
Once your broker has found one or more loans that fit your needs, he or she will recommend them to you. At the same time, you may be provided with a copy of the lenders comparison rate, a tool used to help identify the true cost of a loan.
Manage the entire process
If you chose to proceed with a loan, your broker will help you fill out the necessary paperwork and talk with the lender on your behalf. This should include everything necessary to complete the loan application and any ongoing communication between you and the lender until the home loan is approved.
Provide advice
A good Sydney mortgage broker will be there with you every step of the way, from the first steps until the loan is finalised. They should be there to answer questions, offer advice, and give you any other help you may need. They can also help you with refinancing if your circumstances or needs ever change.
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Mortgage Brokers Lower North Shore