How to differentiate amongst mortgage brokers?
Ethics
Ethics is the most important part while choosing the right broker. In current times, you have thousands of mortgage brokers trying to get a share of your wallet. So finding the right broker is not only a challenge but can also end up being a costly mistake. It all starts with the ethics of the broker and its employees. Does the broker sees a $ sign every time they look at you, or does he/she has a definite passion of helping their clients to achieve their financial goals?
Experience
Coming from a banking background and spending 25 years in Mortgage Broking, I have seen the industry change. Barrier to entry has eased up enormously and hence we see now a mortgage broker at every corner you turn. These days, you only need to do a one week online course of Cert IV in Mortgage broking to announce yourself as a mortgage broker next week. Once certificate is achieved, you are facing clients and recommending Mortgage products to assist them in the most important financial decision of their lives.
Prudent Lending
‘Prudent Lending’ is a term used in the Banking Industry which means that a Finance consultant would exercise a Duty of Care and be careful to avoid undesirable consequences for both the borrower and the funder. Now it is replaced by ‘Best Interest Duty’ What that means is, it is the Duty of a Mortgage Broker to ensure that the loan facility he/she is recommending to a potential client, serves the best interest of the client. So the client after obtaining the loan facility will not be worse off than what he/she was before obtaining the facility.
Innovation
The mortgage broking industry has evolved in multiple folds over the last 20 years. Not only changes implemented by APRA in lending policies and compliance guidelines, but also products and features have largely been upgraded by major funders. Also, with the digitisation of customer buying pattern and marketing has impacted businesses who couldn’t evolve with the changing innovation. So, for a business, it is essential to be in tune with the changes and evolve accordingly to ensure all protocols are put in place to combat this challenging business environment.
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