We’ve all heard the story of the couple that left their mortgage broker’s office teary eyed and bereft of hope. After working together for a few weeks, the couple realises their Sydney mortgage broker isn’t exactly a wholesome person. In fact, they’re more like that wayward child who never returns phone calls after leaving home, and then randomly asks for money out of the blue. They’re so entitled, and it can make the home buying process unnecessarily stressful.
It’s not a unique story, but take heart in the fact that not all mortgage brokers are created equal. Like with most industries, there are rotten apples in the pack that give the best mortgage brokers a bad rap.
So how do you end up with a bad mortgage broker? And how do you find an ethical, honest and efficient mortgage broker in Sydney?
A tale of two mortgage brokers
People who love their jobs are quite often very good at what they do. They use this positive energy to provide the very best service, and it shows in the success of their business.
Let me illustrate.
Anakin’s business flounders, and Luke’s sky rockets to success.
The difference between the two? Their intentions.
While Anakin is focused on the daily grind, Luke is focused on helping people.
Anakin sees his clients as working for him, while Luke works for his clients to get them the best possible outcome. It’s a classic case of love of money versus a love of service.
5 traits to help you identify your Luke Skywalker of the mortgage brokering world
- They answer emails in a timely manner
We live in a busy world, so forgive your mortgage broker for not responding on the same day that you send an email. 24-hours is a courteous response-time. If it’s urgent, follow up with a phone call.
- They have happy staff
A sullen staff member is a sign of mistreatment. If they seem unhappy in their position, it could indicate poor management and pressure from a high workload.
- They work on your time
A smart mortgage broker understands that people generally work within the hours of 9-5pm, so they should be happy with meeting you after business hours.
- They make the process easier
Working with the best mortgage broker for you is supposed to make buying a house in Sydney easier, not add another layer of complexity. If you find that you leave their company with more questions and stress than you did beforehand, walk away. A good mortgage broker will break down complex terminology into plain English without being a jerk. You should leave your initial meeting feeling empowered and ready to apply for a home loan, or at least ready to improve your credit score.
- They don’t make promises
An ethical mortgage broker understands that there’s no cookie-cutter solution to buying a home in Sydney. They also realise that they’re a mortgage broker, not your shining night in silver armour. Every person has a unique financial situation and goals, and they’re happy to help you pick out a fair and reasonable product to suit your needs. They don’t talk about ‘the best’ home loan, because it’s actually unethical to do so (not to mention, illegal).
By law, a mortgage broker is bound to the Australian Securities and investments Commission’s Regulatory Guide. This states that Credit Licensees – which includes mortgage brokers – have to meet responsible lending conduct obligations under the NCCP Act. We’re required to make reasonable inquiries into our client’s financial situations and objectives, verify this information, and make an educated, formal assessment about whether a mortgage is suitable for them or not. On top of that, you have a right to request all of this information as a written copy. Knowledge is power!
If you can, find a recommendation from a friend for a Sydney mortgage broker. A good mortgage broker understands that a happy customer is the best marketing, so they’ll take strides to ensure their customer service is top notch. The whole process should be smooth, easy and give you confidence. If not, you have every right to walk away.