Mortgage Broker Frequently Asked Questions
What does a mortgage broker do?
A mortgage broker is a home loan expert who works on your behalf to help you find and apply for a home loan with a bank or lender. Mortgage broker’s work for you. They are the intermediary between you, and the bank or lender who provides the home loan.
Choosing and applying for a home loan can be complicated and involves lots of back and forth with different lenders. A mortgage broker will be able to recommend home loan solutions that suit your personal situation, taking into consideration what you want to achieve, interest rates, fees and charges. They will also provide you with relevant advice to help you get ahead financially.
What will it cost me to use Blackk as my mortgage broker?
It usually costs you nothing to use Blackk to get your loan approved and settled. This is because we are paid by the lender with whom you have your home loan with after your loan has settled (i.e. when you pick up the keys).
There are some exceptions to this which we will discuss with you if it is relevant. These broadly include the following, if (i) your situation is really complex involving significantly more time, or (ii) you refinance your loan away from Blackk within 18 months of your loan settling, to another bank or mortgage broker.
How much money can I borrow?
The amount you can borrow depends on a number of factors, including your income, expenses, credit score and the type of property and location you are purchasing. To get an accurate estimate, it is best to get in touch with us.
How do I get started?
The best place to start is with a phone call with Victor, our mortgage broker. You can book online a time that suits you, or call the office and we can arrange a time. This is an opportunity for you to ask any burning questions you may have and get a feel for if you think we are the right fit for you.
What are the steps to apply for a home loan?
Once you have spoken with us, the next step is to complete an online fact find, where you provide all your personal and financial information for us to review and also upload your supporting paperwork like bank statements. Once we have reviewed these, we will recommend suitable home loans. For more detailed steps, go to ‘Services’ on the menu bar and choose what type of home loan you are after.
How long will it take to get my loan approved?
This can take anywhere from 2 to 10 business days, depending on how complex your loan is and how busy the banks are. We follow up with your lender regularly on your behalf to push your application along as quickly as possible and keep you updated.
What supporting paperwork do I need to provide with my application?
The paperwork you supply needs to support the information you have provided in your online fact find. This includes bank statements, payslips, ID such as your driver’s license, Medicare card and passport.
How can I get the Queensland First Home Owners (building) Grant?
If you are building or buying off the plan, your first home in the Sunshine State, then you may be eligible for the grant. See this post which goes through the eligibility criteria in more detail.
Can I get the Queensland Stamp Duty Rebate?
If you are buying or building your first home in the Sunshine State, then you may be eligible for the rebate. See this post which goes through the eligibility criteria in more detail.
Why would I use a Mortgage Broker over going direct to my bank?
The main reasons for using mortgage brokers:
- Have access to hundreds of different loans from up to 40 different lenders and banks– This includes the main ones like CBA, ANZ as well as smaller ones you may not have heard of who often have good deals;
- Provide expert home loan advice which gets you ahead financially – From which lender is the best fit for you, through to setting your loan up. Good brokers will also have plenty of experience dealing with real estate agents and builders so can advise on this through your journey. If you have spoken to us and a bank directly about a home loan, you will have noticed we provide you with a heap of good advice that you will never receive from a bank!
- Saves you time – It’s no secret you’ll need to provide lots of paperwork to get a home loan and a good Mortgage Broker does a lot of this handling on your behalf.
What if I have a bad credit history or have missed a few bills?
If you’re concerned about your credit history or your credit file we recommend you get a copy of your credit file before applying for a loan to check and see if there are any ‘marks’ against your name. There can be a number of reasons why this might be the case: from not paying your mobile phone bill on time, missing a credit card or loan repayment or worse. Your credit file can be accessed through mycreditfile.com.au. If you do have a bad credit history, there are some things you can do to fix it but this is normally determined on a case by case basis.
How do Mortgage Brokers get paid?
Mortgage Brokers are paid by your lender once your loan has settled (ie when you pick up the keys). The payment is not out of your pocket.
Mortgage Brokers typically get paid in two ways:
- Upfront commission when your home loan settles; and
- Trail commission for every year you hold your loan with them.
We act with the highest levels of integrity with our advice on how much you can borrow. We never:
- Allow clients to take on a home loan that was too big for them to handle (based on the information they provide us);
- Encourage a client to take on a bigger home loan so we get higher commissions;
- Choose a bank for a client so we get higher commissions.
We want you to know that almost all our business comes from clients referring their family and friends as they are highly satisfied with their experience with us – meaning our clients feel we are acting only in their best interests.
Please note, if your situation is really complex, such as a self-managed super fund or you have multiple loans and properties in the one transaction, a fee may apply. It’s best to confirm this upfront before you get started.
Why does the home lending industry need mortgage brokers?
Mortgage brokers are now a crucial part of the residential home loan industry. Mortgage brokers do the following:
- Keep home loan interest rates and fees down – mortgage brokers negotiate with several banks on your behalf to get the best interest rate for their clients. Without mortgage brokers, expect loan interest rates to rise;
- Allow over 40 different banks and lenders to compete for your loan – most people go into bank branches to ask about home loans. Only the top 6 to 8 or so banks in Australia have a branch network. For the remaining banks and lenders (Macquarie Bank, ING, BankWest etc) they get most or all of their business through mortgage brokers. Without mortgage brokers, the big 6 to 8 banks will dominate. This means banks will raise their interest rates and fees as there is less competition;
- Provide extra advice on getting ready for and applying for a home loan – a bank branch is very unlikely (I’d prefer to say ‘will never’) give you the level of quality advice in preparing for and getting your home loan application approved. Mortgage brokers (good ones) will spend this time with you.
The 2019 Banking Royal Commission report has recommended making customers pay a fee to use mortgage brokering services. This will mean many mortgage brokers will leave the industry. The likely outcome is higher fees and interest rates for borrowers as the big 6 banks dominate.