7 Questions to Ask Your Mortgage Broker

Communication is always important when you are looking for a mortgage. With this in mind, you will need to ask your broker a few questions on your way to getting the best deal for your situation. Here are some of these all-important questions.

1. Which Loans Are Best for Me?

Your broker needs to be on your side, someone you can rely on to give you impartial advice when it comes to your mortgage decision. While the final decision is up to you and you alone, your broker will be able to work with you, taking your specific situation on board and then delivering you a suitable list of potential options.

2. How Much Can a Lender Offer Me?

Understanding how much you can borrow will be crucial to your home-buying decision-making. Basically, you need to know what kind of mortgage you can access so you can make the best of your financial situation and leverage the ideal home for your circumstances. Different lenders will have their own criteria regarding who they will lend to, so ask your broker to find out just how much you will be able to borrow from the broker’s own lender partner network.

3. Which Lenders Are You Working With and How Many Different Options Do They Offer?

The best brokers will be working with a wide portfolio of lenders, so they can help you find the best deal for your situation. The more lenders the broker has relationships with, the more options you will have at your disposal – it’s as simple as that. Ask your broker how many different loan products they can make available to you.

4. Do You Think I Should Lock In My Rate, or Should I Go Variable?

Your broker isn’t going to be able to offer you direct financial advice based on your current circumstances. However, they will be able to offer you the benefit of their own expertise when it comes to loan products. They will be able to give you a breakdown of the pros and cons of a fixed-rate loan so you can decide whether you want to select this option. They will also help you understand the potential advantages and disadvantages of a variable rate loan so you can make an informed choice.

5. Are There Any Other Features I Could Benefit From?

Loans are not created equal. There are different features you could take advantage of on your loan product, and it pays to be aware of them. For example, it may suit you to be able to pay your loan back faster if your financial situation changes. You need to know what the process is for this, whether there are any additional charges and whether this is allowed at all on your loan.

6. Can I See a Full Breakdown of the Fees and Charges for This Loan Product?

Loan products tend to come with charges and fees, but your lender should be upfront about these. Avoid any nasty surprises further down the line by requesting a full breakdown of all the fees and charges relating to a particular loan product.

7. Can I Move from a Variable to a Fixed Rate at a Later Date?

You might want to keep a variable interest rate, which will fluctuate according to the way the market is moving. However, you might want to lock this interest rate in at a later date if you think rates will climb in the future. Basically, you need to know whether you will be allowed to change the way your interest is handled in the future – some mortgage providers will allow you to switch between a variable and fixed interest rate, or vice versa.

Find the Mortgage You Need with Sydney Brokers

Here at Sydney Brokers, we specialise in helping people connect with the right lenders for their situation. We’ll work with you to explore an array of options that are the ideal fit for you. Reach out today and let’s get started.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.