12 Things You Must Know Before Using A Finance Broker

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12 things you must know before using a finance broker.

Getting a broker to arrange your loan can save a lot of time and hassle, but it is important to ensure the service you expect is the one that's delivered. These 12 steps can help you ensure you have a great experience with your finance broker.

1. A broker should have a wide range of home loans from a wide variety of lenders, eg. banks, and non-banks. The wider the choice, the better the chance of finding the loan that suits you.
2. Check the qualifications and experience of your broker, even ask for references from previous borrowers.
3. Are they an FBAA member? Have they completed training courses?
   Ensure your broker is not an agent for one lender in disguise. Some lenders now operate as brokers too so establish with any broker representative exactly what their role is.
4. Make sure your broker discloses all commission and payments received so you can judge whether a particular loan recommendation is being influenced by how much the broker will be paid.
5. Does the broker charge a fee? Many brokers will not charge borrowers for using their service, others will, so enquire about fees at the outset.
6. Ask your broker how the loans they offer are researched and rated. Good brokers should be able to clearly outline their criteria.
7. Ask your broker to provide a formal comparison of any loans recommended including the upfront and ongoing fees and the AAPR (average annual percentage rates). Ensure the AAPR is calculated specifically for the amount you want to borrow.
8. Always do some double-checking yourself to satisfy yourself you've been given unbiased and correct information.
9. Check what service is offered by the broker after the loan is negotiated. Will the broker be available for subsequent loan enquiries? What happens if there is a dispute between you and the lender?
10. Will your broker comply with the Privacy Act to ensure the security of your personal and financial details?
11. Your broker should have professional indemnity insurance. This safeguard will help you in the event of legal action.
12. As a last resort, the independent Credit Ombudsman Service Limited is available if there is a dispute you can't resolve with your broker directly.
    

You can rest assured when using my company that all of the above steps will be covered and that you should always feel comfortable raising concerns and asking questions throughout the loan process. Should you wish to discuss your options for obtaining finance please contact me at any time.