With literally hundreds of different loan products available in Australia, it can often be frustrating and a little intimidating finding the right loan. It’s not quite as simple as approaching a lender for a single loan product as most lenders have dozens of loan products. Applying for a loan without fully understanding your options could potentially result in unnecessary costs and even in declined applications from lenders.

Different lenders also have different preferences for what type of customer they want. Accordingly, a borrower might be rejected by one lender, accepted by another and accepted by yet another for an even higher amount – such is the difference with lenders.

One way to avoid all the confusion is to find a Mortgage Broker.

The main advantage of using a broker is that you will usually only have to go through the process of applying for a loan once. By having your full details (as discussed in Finance #1), they can submit applications to as many lending institutions as you require. They will also be able to help you to narrow down the field to the lenders most suited and most likely to lend you the money.

There are many brokers operating in Australia - from large national companies to individuals. They have information about various packages on offer from a large number of lenders and will follow-up your loan application from the time when you first speak to them right up to the final settlement.

A mortgage broker can help you to work out which type of loan suits you based on not only your current situation but also your future. They know, and understand, the lending criteria of lenders on their panel, the differences between the various loan products, heir advantages and disadvantages. A mortgage broker should also be able to answer all of your home loan questions.

When selecting a mortgage broker ask them a few questions first to establish if they are the right one to help you:

• Are they a member of either the Mortgage Industry Association of Australia or the Finance Brokers Association of Australia? Members of these association are bound to abide by a code of ethics.
   
• How experienced are they? What is their background? You will find that some brokers have many years of experience as lending officers with banks and other lending institutions.
   
• Who pays them? Ask the broker to state clearly the arrangement for their fee. Most brokers will not charge you as they are paid a commission by the lender if they are successful in getting a loan for you.
   
• How many lenders are available through the broker? Many of the better brokers offer more than 100 loan products from more than 20 lenders.
   
• What other professional experience can the broker offer. Some brokers are also qualified accountants and/or financial planners.