Questions to ask your mortgage broker (and the answers you should receive)

Quite often I talk to people and they tell me things like 'I have a mortgage broker, been dealing with them for years' or 'I already have a financial adviser' (meaning a mortgage broker). The conversation usually goes on and it then becomes about the hassle they are having with the bank during a construction or they are speaking to their bank about fixing the term of a loan and trying to negotiate a better deal. If you are speaking directly to the bank you do not have a mortgage broker, you have a loan writer, and they are very different. When searching for a mortgage broker you want someone who is committed to your long term financial health and below I have listed the questions I would ask a mortgage broker (being a mortgage broker) before engaging them to act on my behalf.

Q1. Once I am in this loan how often will you review it to make sure it still suits my needs.
 A. Ideally every year but no more than every 2 years.

Q2. If I want to top up my loan, consider a fixed term or decrease the limit who do I speak to and who will do this for me. 
 A. This should be done by the broker and you should not be referred back to the bank.

Q3. If I am taking on a loan with an interest only term how long is this term for and at the end of this term what do I need to do to extend it.
 A. The interest only term must align with your long term plans and goals, when an interest only term expires the repayments will automatically revert to principal and interest.

Q4. If I am building a home who do I speak to if, during the construction process, I am having problems with progress payments. 
 A. Your broker should sort out any problems on your behalf.

Q5. If I have more than one property will they be cross secured and if so why.
A. It is important you know what happens when properties are cross secured and how it could affect your future plans.

Q6. If you refer the services of another professional will you get a payment or fee for doing so.
A. If a referral fee is to be paid you should be advised of this upfront and in writing. As a consumer you need to determine if this referral is motivated by your personal circumstance or by a monetary reward.

If you have any questions you would like to ask me please message me through this link or contact me on 0437 904 518, I am more than happy to help.

Your full financial situation would need to be reviewed prior to acceptance of any offer or product.