What Does a Mortgage Broker Do?
A good mortgage broker can make the process of obtaining a home loan for an Australian expat a lot easier and seemless.
In todays data driven world a home loan application is assessed by a credit department and they use internal software that analyses whether you would be a good fit for that bank.
The recent boom in Australian consumers using mortgage brokers has come about as home buyers need a professional that can help them navigate that the increasing complexity of applying for a mortgage.
Did you know that over 50% of new mortgages in Australia were facilitated by a mortgage broker in 2020?
A mortgage brokers job is to survey the current home loan market and find the best loan that suits your circumstances.
They don’t just deal with one bank but many banks and those banks are always changing their policies as to what type of home loan applicant they are willing to consider.
How Can a Mortgage Broker Help Australian Expats?
In recent years the banks have tightened up their lending criteria to Australian expats and foreign investors. Then when you include the policy changes that were a result of the 2018 Royal Commission into the banking sector and you would think that its now impossible for an Australian expat to get a home loan.
The good news is that this is not the case. It just means that as a Australian expat you need to look for a bank that is willing to work with you and take into account you circumstances as a Australian citizen living and working overseas.
As an Australian resident we always default into approaching one of the big four banks who more often than not have the most conservative lending criteria so it’s not surprising that most Australian expats fail to obtain a mortgage from them.
Where Australian expats have gone wrong in the past is that after getting a rejection from the big four they just assume that they have no further options when in fact there are Australian banks that are lending to Australian expats every day.
You just need to know who they are and that’s where a mortgage broker comes in. Its their job to stay up to date on all of the banks lending policies and give you the best chance of securing a mortgage by approaching a bank that is willing to work with you.
It is pointless lodging a home loan application with a bank who was never going to lend to you in the first place, no matter how good your application is, because you’re a Australian expat.
A mortgage brokers job is to take the stress out of applying for a loan as a Australian expat and to succinctly outline what options are available to you and who they are with.
Their job is to anticipate any problems that may arise in the application process before it happens and a big part of this is knowing which bank to deal with as they all have their own internal policies and lending criteria.
What Does It Cost to Work With a Mortgage Broker?
Generally speaking a mortgage broker is paid by the bank or home loan provider by way of a commission and not by the person applying for the loan.
Different banks may pay different commission rates however they are generally similar to each other as long as you are comparing the same type home loan product.
A good mortgage broker will always be upfront about what commissions they may receive and will be happy to share with you what that number maybe.
In lieu of the commission that they obtain you are receiving the following benefits:
- You are buying their time and knowledge to help you obtain the best home loan that suits your circumstances.
- You are avoiding the time spent having to talk to many different banks to see whether they would even consider a home loan application from you as a Australian expat.
As to whether you think it is worthwhile engaging a mortgage broker comes back to the above two points. As the lending landscape is changing on a weekly basis if you have the knowledge and time then a DIY loan application is certainly feasible .
How Does a Australian Expat Choose a Mortgage Broker?
Whenever you are choosing to work with a professional there are a number of key considerations that you need to take into account which are:
- Licensing – Are they licensed with the appropriate licensing authority?
- Experience – not every mortgage broker in Australia would have experience in dealing with Australia expats so it’s important that you work with one that does on a daily basis rather than a couple of times a year.
- Client base – ask them what percentage of their client base are Australian expats. If its anything less than 50-70% then look to work with someone who is working in this specialised area more often because everything is always changing and the last thing you want to do is spent a lot of time with a mortgage broker who is shopping your application around to the banks because he doesn’t know who the expat sympathetic banks are.
Australian expat mortgage services are provided by Atlas Mortgages Pty Ltd ABN 93 646 699 863 who is a Authorised Credit Representative 463430 of Mortgage Specialists Pty Ltd, Australian Credit Licence Number 387025.
General Advice Disclaimer
The information provided on this website has been provided as general advice only. We have not considered your financial circumstances, needs or objectives and you should seek the assistance of your Atlas Wealth Management Authorised Representative before you make any decision regarding any products mentioned in this communication. Whilst all care has been taken in the preparation of this material, no warranty is given in respect of the information provided and accordingly neither Atlas Wealth Management nor its related entities, employees or agents shall be liable on any ground whatsoever with respect to decisions or actions taken as a result of you acting upon such information.