At Madd we believe that success is built upon the collective effort and diverse expertise of our team members. We take pride in having a group of talented professionals who are passionate about their work and dedicated to delivering exceptional results.
At Madd we believe that success is built upon the collective effort and diverse expertise of our team members. We take pride in having a group of talented professionals who are passionate about their work and dedicated to delivering exceptional results.
Many clients stick with their mortgage broker for future financial
assistance, including refinancing, personal or car loans, and
investment property purchases. Reputable brokers often receive
second and third generation customers based on referrals,
demonstrating the value of high-quality service and positive
outcomes.
At Madd we believe that success is built upon the collective effort and diverse expertise of our team members. We take pride in having a group of talented professionals who are passionate about their work and dedicated to delivering exceptional results.
While banks offer many products and services, home loans are the speciality of mortgage brokers. Arguably, the superpower of a mortgage broker is their ability to turn the complexities of a lender’s policies into black and white information, which can be invaluable when it comes to making decisions about your financial future.
Did you know that Australia has over 40 different lending providers? Your mortgage broker certainly does, along with the ins and outs of almost every one. A mortgage broker provides you with one point of contact and can save borrowers countless amounts of both time and money.
At Madd we believe that success is built upon the collective effort and diverse expertise of our team members. We take pride in having a group of talented professionals who are passionate about their work and dedicated to delivering exceptional results.
First-time buyers shouldn’t wait to see a mortgage broker. Brokers can advise on deposit-reducing options like grants, concessions, and the implications of LMI. They can also explore guarantor loans. Essentially, brokers provide invaluable resources and information, guiding first-time buyers through the often confusing home-buying process.
Soaring interest rates are driving Queenslanders to mortgage brokers. While refinancing isn’t the only option, brokers can explore alternatives like adjusting loan terms, debt consolidation, or offset accounts. People often refinance under pressure, but brokers provide stress relief and practical solutions.
Mortgage brokers, often small businesses, offer hands-on service. Reputable brokers are often found through referrals and community involvement. A Brisbane broker should possess in-depth local real estate market knowledge. While not property advisors, a personal property portfolio suggests they understand the market firsthand.
Are you a member of the Mortgage Finance Association of Australia (MFAA) or Finance Brokers Association of Australia (FBAA)?
Do you have your own Credit Licence or are you a Credit Representative?
Do you have any public testimonials or reviews that I can see about your business?
Do you charge a brokerage fee for getting my finance approved?
Looking at my finances, how much will I be able to comfortably borrow?
Based on my borrowing capacity, how much can I expect for my monthly repayments?
Am I eligible for any Federal or State Government assistance and how do I apply?
What is the minimum deposit required?
How long will it take to get a pre-approval to start house hunting?
Based on my situation, what do you think is the most suitable loan type or structure for me?
What interest rate can you offer me?
Are there any ways I could achieve a better interest rate?
Will I need Lender’s Mortgage Insurance (LMI)?
Can you outline what other costs or fees that I need to budget for?
Why are you recommending a specific loan product?
Is there anything else I should be doing to put myself in a good position to get my loan approved?
Many mortgage brokers operate as small businesses or contractors, and earn their income from the commissions they receive from the lenders. The commissions or fees they receive from the lenders will vary depending on the lender, and the commissions themselves are based on a percentage of the loan amount.
As a general rule, brokers are paid between 0.33% and 0.85% of the loan amount as an up front incentive, and an ongoing incentive of 0% to 0.285% of the loan balance per annum. Most lenders pay 0.65% for upfront commissions and 0.15% for trials, GST excluded. While the service is therefore free to the customer, don’t be afraid to ask for transparency and why your broker is recommending a certain product.
Recommendation 1.2 of the Royal Commission into Misconduct in the Banking,
Superannuation and Financial Services Industry recommended that mortgage brokers be
required to act in the best interests of the consumer, where a breach of this duty should be
subject to a civil penalty. In line with new legislation, mortgage brokers are legally bound to
only recommend financial products that are in the best interests of an applicant.
In addition, it’s worth doing your research to ensure that a mortgage broker truly is an
independent operator with no allegiances or preferences tied to a big bank. As an example,
did you know what Aussie Home Loans is owned by the Commonwealth Bank? Or what about
Mortgage Choice, which is listed on the Australian Securities Exchange (ASX) with several
major banks as shareholders? In the world of finance, knowledge is power.
Finance clauses in a contract of sale can be one of the biggest hurdles that stands between
you and your dream home. Thankfully, obtaining the all important pre-approval for a home
loan is well within the control of a buyer, and is a process that’s almost always recommended
in the current property landscape.
For wannabe buyers who are unfamiliar with the concept, pre-approved finance – otherwise
known as a pre-approval or a conditional approval for a home loan – is mutual
understanding between a lender and a borrower. A pre approval is when the lender indicates
that they are willing to lend the borrower up to a certain amount of money to fund the
purchase of a property, ensuring that buyers have the capacity to make offers with
confidence. Once granted, a pre-approval is usually valid for three months.
Pre approvals can take anywhere between a couple of days and several weeks to generate
an outcome. As a general rule, the more complex your finances are, and the busier your
chosen bank or lender is, the longer the process will take. It can also depend on your broker’s
relationship with the lenders, and their processes and procedures as a business. If
your application is incomplete, or your lender requires additional information about your
financial position, then the process could take longer while the extra paperwork is processed.
Although each bank has a slightly different application process and relevant criteria that
needs to be met, most will generally need to see documentation such as photo identification,
bank statements, proof of savings, lists of assets and existing debts, proof of income, and a
breakdown of your current living expenses. As they can compare multiple lending providers,
mortgage brokers are able to help steer you in the right direction and ‘package’ your
application to a loan product that best meets your needs.
Unfortunately, there are a lot of things that will stop an applicant from getting approved for a
home loan. Just a handful of the most common reasons for a decline include not having a big
enough deposit, not being able to prove genuine savings, having a poor credit score, if you
want to borrow too much money, you don’t have a stable enough income, your living
expenses are too high, or even the fact that you’ve applied with the wrong type of lender.
Thankfully, working with a reputable mortgage broker can help an applicant to avoid all of
these things, especially when the partnership starts many months before an application is
submitted. A mortgage broker may help the customer to explore options for lower deposits
such as guarantor loans, how to improve their credit score, or advising ways to present their
application in the best possible light with a lender that best fits their position, particularly for
those that are self employed.
Don’t stress about finding the best loan. We’ll handle it! Answer this quick question, and we’ll search our extensive network to find the ideal loan for you for free.
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