What do brokers do?
Finance and Mortgage Brokers are finance industry professionals who source lending options for the clients from multiple lenders and financial institutions with which they are accredited.
In general, the term Mortgage Broker refers to a broking professional who specialises in residential home lending products, whilst, the term Finance Broker is more generic and often refers to Brokers who source a range of finance options including residential lending, business, commercial, asset and vehicle lending.
Brokers can only source loans for clients from lenders with whom they have been accredited. The number of lenders available through each broker will vary according to the accreditations they have in place.
Most Mortgage Brokers do not charge clients a fee for the service they provide. The Broker earns their income from the commission paid to them by the bank or credit provider once the loan has been fully funded. In most cases a Mortgage Broker will be paid an upfront commission and a trailing commission by the lender. It is not standard industry practice for a Mortgage Broker to charge a client for their service.
In the case of commercial, business, asset and vehicle finance, the lenders do not generally pay a commission for the work undertaken by the Broker. As such, in those cases the Broker may charge a professional fee for their work in assessing your financial circumstances, sourcing loan options, completing the application and negotiating with the lender for the approval and settlement of the loan. Your broker will discuss any of these costs upfront before you commit to any finance involving these types of assets.
Benefits of using a broker include
- Access to a wide range of lending providers in one place
- Expertise in a wide range of lending
- Loan structuring advice
- Personalised service delivering quality finance solutions for your circumstances