Mortgage

Should You Use a Mortgage Broker?

By February 19, 2019 No Comments

It has been a turbulent few weeks for Mortgage brokers in Australia. The handing down of Commissioner Haynes’ report resulting from the Royal Commission into misconduct in the Banking, Superannuation and Financial Services Industry has everyone talking.

Launch Money is, as you are aware, the mortgage broking business affiliated with CXC Financial Partners.  It was established to solve a growing problem in Australia, which was the unfair treatment of contingent workers by the banks with regards to obtaining finance for the purchase of a primary residence, or investment property.  It has since grown to provide a service to the friends and families of contingent workers, whether they be self-employed or not and we are proud to ay we have assisted hundreds of contactors grow there wealth and provide for their future.

Launch Money is one of approx. 17,000 brokerages across Australia employing more than 25,000 people.  It is a significant industry of predominantly self employed micro business owners.

Mortgage brokers write more than 50% of all loans in Australia and that number is growing as the procurement of funding from the banks gets more complicated. It’s not hard to see why consumers can’t find the time to approach more than one lender with their paperwork, it’s time consuming and confusing and as we have experienced since we commenced the business, the banks will place you in the best product for them.

Our job is exactly the opposite: It is to place you in the best product for you!

What does a mortgage broker do?

At Launch Money, our first job is to ask you questions, the answers to which provide us with an understanding of your financial affairs, current needs and your future requirements.

With the understandings obtained, we commence the process of searching for loan products that meet your requirements.  Our experience within the industry allows us access numerous lenders, over 35 in fact, so we will certainly have access to loan products that can satisfy your needs.

Your launch Money broker will then discuss these products with you, work through the benefits and drawbacks of each loan product ensuring you have a great understanding of each.  You then get to choose which is the most suitable for you and your Launch Money broker will then commence further negotiation with the lender around your personal circumstances, timing and required structure.  This is where our experience counts.

Most importantly, for our clients that avail themselves of our other services in Financial Planning, Accounting and Property services, your Launch Money broker will ensure the product selected meets your overall strategy to ensure finance doesn’t become a stumbling block to you achieving your goals.

How do brokers get paid?

I don’t believe anybody expects a broker to do all the work, save you money and protect your interests without getting paid as a result.  Remember a broker only gets paid when you settle on your loan, there is no upfront fee charged to just test the market for you.

At present Brokers are paid by the lender, past changes to the remuneration model have removed incentives such as volume bonuses to ensure that a broker is not influenced by what they receive when suggesting loan products to you.  In other words, a broker receives the same from each lender regardless of value, volume or relationship.

At Launch Money we believe in transparency and the amount we get paid is declared to you in your documentation, you sign the document to show you have read the disclosure and agree with the value you have received. Nothing is hidden.

Why use a broker?

Unless you are prepared to approach multiple banks/lenders with your requests, have a solid knowledge of the implications of lending guidelines, criteria and loan contracts, then a Mortgage Broker is the only available option to ensure you are protected from unwittingly, at no fault of your own, making a mistake that could cost you thousands.

At Launch Money we believe we offer an indispensable service and hold strongly to the belief that a mortgage broker is the only party to the process who is best positioned to act as an advocate for the borrower.  Our service is more than just securing the lowest mortgage rates, we give you tailored advice to help fast-track your application with the RIGHT LENDER based on your financial goals.

Whether you are buying a new home, personal investment property, SMSF investment property, motor vehicle or thinking about refinancing, Launch Money can help secure a better loan and deliver a hassle-free mortgage experience for you.

To speak with a broker at Launch Money call our team on 1300 925 081.

Alternatively, you can email your questions to: info@launchmoney.com.au