Monday, July 19th, 2010
New uniform consumer credit laws governed by ASIC have been introduced to ensure all credit lenders and credit service providers, such as mortgage brokers, engage in responsible lending and transparent customer service.

So, how can potential borrowers decipher the best mortgage broker from the rest?

According to Australia's largest independently-owned mortgage broker, Mortgage Choice, using the simple checklist below when choosing a mortgage broker will help ensure borrowers question important aspects of their service and gain a thorough insight into the value of the broker's offering.

Local mortgage broker for Mortgage Choice Anthony Smith said, "In an increasing competitive mortgage market there is no doubt borrowers achieve the best results - saving time, effort, confusion and, potentially, money - when they shop around for a home loan deal."

"Mortgage brokers are a valuable source of information and assistance, which is why a recent Mortgage Choice survey found 41% of new first homeowners said their mortgage broker was their favoured point of contact for mortgage guidance. In fact, approximately 40% of all new home loans in Australia are now sourced by brokers such as myself."

"It can be daunting to figure out how to find one that suits your needs. Do a little homework so you know what sets one mortgage broker and their business apart from others."

"Questions should be asked about their service standards, training, accreditation, range of lenders and products, experience, ethics and commission structure. You should also check if the broker has their own products and, if so, why they put them forward as suitable."

Mortgage Choice offers the following checklist to help borrowers find a professional mortgage broker.

Is the broker working in your best interests? If so, can they demonstrate they:
  • Receive the same commission rate regardless of lender or product chosen?
  • Do not have branded products of their own? If so, do they have clear reasons for recommending those products over others?
  • Disclose alternative forms of remuneration and any referral fees paid for customer introductions?
  • Have looked into your ability to repay the loan amount?
  • Have a Customer Charter and Finance Broking Agreement that clearly outlines their service levels, remuneration and dispute resolution policy?
Can the broker clearly explain in writing:
  • Why the loan products they suggest are suitable for you and why others are not?
  • The process the application will take from enquiry to settlement, including loan processing times?
  • Full disclosure of commissions received and how they are calculated?
  • Their complaints procedure and privacy policy?
Can the broker demonstrate professional standards?
  • Are they compliant with the National Consumer Credit Protection legislation?
  • Have they completed an accredited mortgage broking training course, including qualifications for Certificate IV in Financial Services (Finance and Mortgage Broking)?
  • Do they carry adequate professional indemnity insurance?
  • Are they a Mortgage & Finance Association of Australia member and do they comply with its Code of Practice?
Can they offer real choice of home loans?
  • Do they have access to at least 15 lenders ranging from big banks, smaller banks, building societies, credit unions, etc, on their panel?
  • Will you receive a written comparison of loan options including upfront, ongoing and exit fees?
Is the broker's advice and service at no cost to you?
  • Outside of the normal home loan application fees, will the broker's service be at no cost to you?

Visit Anthony Smith's website at or call 1300 302 668.

Contact Profile

Mortgage Choice in Cheltenham, Melbourne

Australia’s largest independently-owned mortgage broker, Mortgage Choice has a national network of hundreds of franchises and loan consultants supported by Group and State Offices. They provide guidance on, and choice of, home loans offered by an extensive panel of leading lenders. Many consultants provide a broader service offering, also helping customers source commercial and personal loans, asset finance, deposit bonds, and risk and general insurances.

Importantly, Group Office pays franchisees the same commission rate for home loans they write, regardless of the rate paid by the lender selected by a new customer. It has done so for most of its 18-year history. The company has no products of its own, working in each customer’s interests to source a solution that suits their individual needs.

Mortgage Choice has no balance sheet or funding risk, and consistently delivers strong profits and attractive yields. It listed on the ASX in 2004 (sign: MOC) and is a member of the Mortgage & Finance Association of Australia (MFAA).

Recent recognition: 2010, 2009, 2008, 2006 and 2005 MFAA Awards Retail Aggregator/Originator of the Year; 2010, 2009 and 2008 10 Thousand FEET Top 10 Franchise list; 2009 and 2008 BRW Fast Franchises list; No.1 on 2009 Top 25 Brokerages list by Mortgage Business magazine; 2009 Australian Banking & Finance Awards Best Financial Institution Employer; 2009 Great Place to Work® Institute Best Companies to Work For list; 2008 MFAA Awards Best In Mortgage & Finance Industry.
Anthony Smith
P: 1300302668
M: 0413439761


mortgage brokers, mortgage choice, home loans, Melbourne, Australia, Victoria, mortgage brokers Melbourne



More Formats

View QR Code