What does a mortgage broker do?
Mortgage brokers are professionals in the home loan industry. We work with you to determine your borrowing needs and how much you can borrow.
Professional mortgage brokers focus on loans. If you have a toothache, you go to the dentist not a cardiologist. If your car is broken, you take it to a mechanic not a librarian. You go to someone trained to help you with your specific need. It’s the same when you need a loan.
Brokers have access to a wide variety of loans. This means your broker can negotiate a loan that’s just right for you.
Do you charge a fee for your service?
At Cloud9 Finance our services are completely free for all types of loans.
Some people think it costs more to use a mortgage broker than go to a bank. That is an absolute myth and not true at all. Brokers get paid commission by the bank for bringing new business to them, this does not impact your rate or level of service.
Some brokers charge a fee for their service. They must disclose this fee upfront to you, so you know what you will be up for if you engage their services. However, the costs of the loan are the same, depending on the loan you choose.
Don’t you just recommend the lender who pays you the most commission?
Absolutely not, there is legislation in our industry, called the National Consumer Credit Protection Act (or NCCP), that is designed to protect consumers and ensure ethical and professional standards in the finance industry. We tell you upfront what commission we will be getting from the bank. Our job is to find the best loan for your needs and serviceability.
How much can I borrow?
This is dependent on how much you have saved for a deposit and what your current expenses are. Give us a call and we can go into your options in more detail, or check out the loan calculator page of our site
Should I go fixed or variable?
We are only allowed to recommend a product based on what you say is most important to you – for example, “pay my loan off quickly” or “guaranteed repayments”. We cannot determine which loan is right for you without a full understanding of your financial circumstances.
I am not in your area; can we still work together?
Sure thing – my services are provided online so I work with clients from all around Australia.
Which lenders do you deal with?
The Cloud9 Finance team have access to many lenders – these include the major banks, second tier lenders and credit unions. We can source you a loan from the lender of your choice.
Who sets interest rates?
The Reserve Bank of Australia meet on the first Tuesday every month to determine the official cash rate for the country. The lenders then use this information to set their own rates. Mortgage brokers do not set rates.
Why should I use a mortgage broker if I can go with a bank?
When we talk about a ‘loan product’ we are referring to the thousands of options that are currently available for you for your loan. Each bank (or lender) has loads of different loan options – low doc, package loans, re-draw facilities, plant and equipment loans, fixed, interest only, interested in advance, variable, introductory variable… the issues you face as a consumer is ‘which loan is right for me?’ And that is where a mortgage broker comes in. If you go direct to the bank, you will only be offered the loan options available through that one lender. As your mortgage broker, we do all the leg work for you. We are across many lenders and all of their loan products and our sole purpose is to find the right loan for your needs. Your full financial situation would need to be reviewed prior to acceptance of any product or offer.