All You Need To Know About Brokers

WHEN looking into buying a property, you might opt to have a finance broker or mortgage lender make the arrangements.

Before engaging the services of a broker, here are some tips to ensure you're getting the best deal.

  • Ask these simple questions:

    Do they have professional indemnity insurance?

    Do they charge you a fee for their services?

    Do they belong to a reputable industry association?

    Do they offer a wide range of loans from a variety of independent lenders?

    Are they a lender as well as a broker? This may affect their recommendation.

    Are they independent or do they deal only with a certain lender?

  • You should also ensure that the broker:

    Discloses any fees, commissions or other benefits they obtain from signing you up for a loan.

    Justifies all their recommendations.

    Shows you a copy of the application and any financial details they will send to the lender on your behalf.

    Provides you with a comparison rate calculation for each of the lending options they give you.

    You are not obligated to pay an upfront fee to your financial broker. However, a fee for valuation, if required, may be charged up front Ñ but the broker must hold the money in trust.

    Assistance: Brokers can help you find out about suitable loans or credit packages and arrange special deals.

    Calculations: Don't take on the highest loan youÕre offered Ñ consider the reality carefully.

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