At Open Doors Buyers Agent in Newcastle, we understand firsthand how important it is for Aussie’s to secure the right home. The joy and excitement that our clients experience when we help them find the perfect property around Newcastle and the Hunter Valley is part of what makes our work so rewarding!
Given our close involvement in the home-buying process, we know the first step for most buyers is getting a loan. To ensure we offer the most accurate and reliable guidance to our clients, we wanted to deepen our understanding of the home loan process. So, we recently sat down with Robyn Oberg, a mortgage broker from Vision Property and Finance.
Q: How do Mortgage Brokers make their money? Does the client pay a fee?
“Mortgage brokers receive a commission paid by the bank that we write a client’s loan with. We receive an upfront payment which is a percentage of the loan amount, and trail which is a continuous payment by the lender over the life of the loan. The banks pay trails to mortgage brokers as compensation for giving the bank business, by bringing their client to that bank to take out a loan. Commission paid by the lender is the same across the board so there is no bias as to which bank we put you with; we just look for the best property deal for you!
This is important for borrowers to know, as typically it shouldn’t cost you anything to work with a mortgage broker. Some mortgage brokers may charge a small fee to cover expenses involved in processing a mortgage application.”
Q: Do Mortgage Brokers continue contact with their clients after the loan is settled?
“Absolutely! I stay in touch with clients throughout the life of their home loan, providing consistent service with check-ins every 6-12 months. This ensures clients continue to receive the best deal as their needs and goals may evolve.
We regularly review loan terms, monitor interest rates, and support clients by adjusting or refinancing loans when necessary. Services include home loan health checks, optimising offset accounts, and ensuring repayments stay on track to help clients reach their next financial goals.
One benefit of working with a mortgage broker is our strong relationships with lenders, often leading to special rates, pricing advantages, and faster service not always available to the public.”
Q: Why should someone use a Mortgage Broker over doing it themselves or with a bank?
“Great question. As a mortgage broker in Newcastle and Lake Macquarie, I have access to multiple lenders and products, which in turn increases the likelihood of finding the right loan for each client. A bank can’t do that; banks can only offer their own set rates and products that they’re motivated to sell you.
Navigating the home loan process on your own can be overwhelming and time-consuming, and doing the work yourself leaves you at risk of ending up with a loan that doesn’t truly meet your needs or isn’t in your best interests. Banks won’t tell you that, because they want your business.
Whilst we are not tax or legal experts, a good broker will also have an awareness of how to ensure home loans are structured well for tax purposes. We have also discussed hundreds of contracts with the banks, so can often point out sections which may need further discussion with your conveyancing expert.
But unlike banks, brokers are focused on finding the most suitable product with optimal terms for your situation. We save you time, money, and reduce the risk of poorly structured loans or future financial stress.”
Q: What makes a good Mortgage Broker stand out from the rest?
“A good mortgage broker knows that it’s not just about finding the lowest interest rate; it’s a strategic approach to structuring the loan for long-term financial success. Savvy brokers will look at the entire picture, not only the immediate objective of getting you into your first home. A good broker also knows when to connect you with other professionals, like buyers agents or accountants, to make sure you’re making informed decisions.
And of course, as I mentioned earlier, a good mortgage brokers service doesn’t end the second the client signs off on the loan and gets the keys. We have a long term, continued incentive to nurture clients for the life of their loan, or longer, in the hopes of seeing the client again when they’re ready to upgrade their house or even get a loan for an investment property!”
Q: Why won’t a Mortgage Broker immediately recommend the cheapest rate?
“Ah, that’s a good one. A good broker knows the best rate isn’t necessarily the lowest. While a rate might seem cheaper upfront, the loan terms – such as hidden fees, no availability to offset accounts or redraw facilities, or restrictions on future changes – may not be ideal.
A good broker takes the time to assess the entire loan package, balancing the best rate, your repayment ability and long-term goals. Ultimately, brokers save you time by recommending the most suitable loan, not just the cheapest on the surface, and ensuring a smoother process for future needs.”
Q: Do Mortgage Brokers work for the bank?
“This is a common misconception. The answer is no, mortgage brokers do not work for a bank. They work for you, the client. Brokers are paid a commission by the lender when a loan is secured, regardless of which bank is chosen. It is even written into legislation now and is called ‘Best Interests Duty’.
While brokers build relationships with different banks, as part of our best interests’ duty to each and every client, we assess all available lenders and products based on your unique borrowing capacity and needs. The service, product, journey and end result is different for every client.
We also make sure the client makes their own choices. The goal is to help you make informed decisions, but whilst you remain in control of your financial journey.”
Q: To end, can you summarise your top tips or benefits for anyone considering a Mortgage Broker?
- Brokers have access to a wide range of lenders, improving your chances of finding the right loan for you.
- We’re experts at home loans and find the right loan considering your financial goals and future needs.
- We save you time and reduce stress by managing the complex process.
- As skilled negotiators, we secure better rates and terms through established relationships with lenders.
- We provide ongoing support long after settlement.
Finding the Right Support for Your Property Journey
We’d like to give a big thank you for the opportunity to talk with Robyn Oberg from Vision Property & Finance. Vision is one of the carefully selected mortgage brokers we work with in Newcastle and the Hunter Valley property market.
It’s important to find a trusted professional in your area who understands your needs and is dedicated to working in your best interest throughout the home-buying journey.
At Open Doors Buyers Agent, we are your local area specialist buyer’s agent in Newcastle and Lake Macquarie, and we offer numerous benefits that can significantly enhance your home buying experience.