How To Choose a Good Mortgage Broker

https://www.youtube.com/watch?v=ZcwUCx4pjBo One of the most important people to have on your team as a property investor is a mortgage broker. But how can you actually find a good mortgage broker? Contact Michael at Mortgage Broker Sydney 0:54 - Start with a recommendations1:15 - Look at customer reviews, level of experience and time in industry1:50 - Access to as many lenders as you can5:15 - You need to be able to get on with your broker7:45 - How does someone engage a mortgage broker10:20 - Getting a feel for your broker11:00 - Finding someone who has longevity in the industry12:55 - Summary of how to find a good mortgage broker15:04 - A good broker will give you a path Recommended Videos: Summary of Australian Lending Changes: 2021 Update Do These 6 Things Before Applying For a Mortgage Transcription Ryan 0:00One of the most important people to have on your team as a property investor is a good mortgage broker, someone who can access multiple different lenders show you how much money you can borrow, advise you on how to get better rates, or how to increase your borrowing capacity. But how do you actually find that good mortgage broker and that good person for your team? So today I have with me Michael Brown, from mortgage broker, Sydney Comdata. You to talk through this about how can you find a good mortgage broker? How can you approach a mortgage broker and how the whole process works? So hey, Michael, thanks for coming on today. Michael 0:34Good Ryan. Good to be here. Ryan 0:36So finding a mortgage broker, if someone's you know, not in the industry, they don't have a recommendation from someone they just kind of googling mortgage broker? How can they go about kind of starting to identify who might be a good fit for them? And who might not be? Alright, Michael 0:53well, the first thing, of course, is if you've got friends or family colleagues who have at least had someone and dealt with a mortgage broker and have had a positive experience, we all know, that's probably going to be the best way. But if you're starting green, if I could put it that way, and you're just going to put it out there, then I guess you're looking for things like customer reviews, you're looking for the level of their experience, perhaps their time within the industry. Now, none of those things on its own is a guarantee, but at least it'll start pointing you in the in the right direction. Because I'm a mortgage broker needs to have I Well, I think, and I'm probably attached by us having even been in the industry for a while, but you should have some pretty good industry experience, you want to have as many of the lenders, that the sorry, you want to have access to as many lenders as you can. And you want to have Ryan 1:57does that vary significantly from mortgage broker mortgage broker, which lenders they have access to, or the most mortgage brokers have access to everyone? Michael 2:05No, most mortgage brokers don't have access to everybody. Because different people are employed under different I suppose in different within within different silos. So you could have, you know, completely independent mortgage brokers who will have access to the broad range of the industry, but some of the branded brokers would have less or fewer accreditation across all the major banks. So you might have someone who is within a franchise, for example, would have a significantly limited portfolio, Ryan 2:47which is interesting, because you would kind of think, as a lay person who's not in the industry, you would kind of think the opposite, that if someone's franchise, and it's a big company, then they're actually going to have access to more lenders than an individual. But I don't know if it has something to do with, you know, buying power and these groups negotiating with particular lenders and featuring them? Michael 3:08Well, some of those things are true. Look, I'm not necessarily saying that just because you're a franchise, you don't have access to a decent range of lenders. But as you say, some of those franchise, franchise instance, or businesses have limited their lending panels to take advantage of the sort of things you were just talking about. You know, buying power with a particular lender means that, you know, they might have only four or five different options, rather than 25 different options. Now, just because I've got 25 different options doesn't mean that I'm going to use all 25 of those lenders. But what it does mean, when your particular circumstance, you know, comes to my attention, and we find that you have a particular issue within your application, that we've got four or five times the options that you know, then then some of the others. Yeah, well, that's all I think you would probably come up more with those nice circumstances, if someone's having trouble getting money, being able to access more. It really does. I mean, the premise of a mortgage broker, of course, is that they will, they will act in your best interest and in fact, we're just about to be legislated under law by that. So that that change which perhaps we I would suggest that most mortgage brokers would already have been doing but we are best interest Judy takes effect as at one January, which means that by law, we have to act in our clients best interests, not our own, not the banks but but by the clients. And of course, we are generally as the way that we get paid is by the bank. So When you're fronting up to talk to a mortgage broker, most of them are not going to charge you just for a home loan. And they, so there's no reason why I think he wouldn't go to speak to a mortgage broker. Ryan 5:15Well, that's it, even if you decide not to use them, or you go with a different broker or something like that, you could at least go and talk to them, get a feel for them, see, they're someone that you want to work with they, and then if you decide they are, and they help you with the home loan, then they get paid by the banks in a quarter for that. Michael 5:32And you've touched on something which I speak to my potential clients about all the time. And you really need to be able to get on with your broker. Because you're going to pass on a lot of sensitive information for a start, you're going to be explaining some goals, potentially some dreams, and you're going to rely on them for professional advice. So if you don't feel like that you can trust them at the start, it's probably not going to be something that you can really feel as a good fit. And as a broker, if I don't feel that I can trust my clients, certainly, it doesn't happen very often. But there are times when I've have actually had suggested that they might want to look elsewhere as well, I'm definitely in the minority. And I'm certainly doesn't happen very often. Ryan 6:18Well, as you said, we are sharing a lot of sensitive information, there's also going to be a lot of back and forth, especially if issues come up with the loan or, you know, you need more explanations for why this is happening, or you got a situation and if you're going to be dealing with someone back and forth like that, you really want to have good communication with your broker and that good rapport there. And so I guess, meeting with a broker for the first time or talking with them on the phone and getting that sort of rapport and seeing if you guys vibe together. Michael 6:49Yeah, that really is it, we really do need to have at least some basic level of togetherness vibe, if we could put it that way. Because I'm advocating on your behalf. So if I don't believe in you to a degree, I'm just not going to do my best work. Like he can put whatever cliches you like around it. But simply, I need to be confident and trusting and believe in what you're doing. And to a degree, you need to do the same about me, because then it works for everybody, you know, we all want, we all want to put our best foot forward here, I want I want to present you to the bank, as best as I can. And, and and and you need to have the confidence in me that the place that I've recommended, and that you have finally selected is the place that you know, is where you should belong. Ryan 7:45And how should someone engage a mortgage broker for the first time, let's say they've never applied for a loan before, they don't know how the whole process Michael 7:54works. Look, I have that conversation so many times as you could well imagine in my career. The first thing that I do with them is that I try and make them feel at ease. Because generally our first interaction is on the phone, it isn't always better generally, it's that I just want to make them feel at ease, I want them to be comfortable that I know what I'm talking about. So I would normally give them a you know, a short 32nd spiel about my 30 odd years of experience working in this industry. Some of it with major banks, some of it with, you know, the last 17 years as a broker, I give them a little bit of my personal history so that they feel comfortable that I'll understand what it is that they're trying to do. And, you know, I've done various lending transactions in my life as an individual. And I think that people will feel more comfortable if they know that I've already done what they're about to contemplate. And they explained to them that the way that we get paid so that they can feel comfortable that, you know, they're not sitting on a clock where every six minutes, they're going to incur another $100 bill. And, and, and I give them a few examples of the banks that we can deal with, just so that they get a some comfort that, you know, we're not going to dodgy brothers proprietary limited for our finance. And usually after we've had all of those things, and I also explained, you know, we've got systems I've got, you know, people that helped me they'll be in contact that it is a very intense time in terms of communication.