frequently asked questions

Here are some of the most common questions that people ask about our services and how working with a mortgage broker can help them. Can’t find what you’re looking for? Get in touch and we’ll be happy to help.

Why use a mortgage broker when you can go directly to the bank?

The simple answer is choice and better choice means better outcomes and better loans!  The borrower gets to compare all the loan options in the market with one call and then make their best choice with knowledge and advice from a licensed and impartial credit adviser. 

Mortgage brokers use dedicated software that allows them the ability to quickly analyse the thousands of loan options in the market. This makes it easy for them to compare rates, loan set-up fees, bank policies and any special offers on the market. They may also have access to exclusive offers and products that aren’t available elsewhere, even if you go directly to the bank.

At Multi Choice we offer a totally free service, and because we have the option of choosing the best deal for the borrower from a very large selection of banks, we are sure to find you a better deal.  We also have all the up-to-date knowledge on lender discounts and special offers through our software. Furthermore, we are constantly aware of which lenders are hungry for business, which gives us the ability to negotiate specific better pricing for our clients.  We have been doing this for a very long time and we therefore know which lenders you will have the highest chance of success with, so in short, our expertise will help you get your loan approved.  You would simply be doing yourself an injustice not to give an experienced mortgage broker a call and let them advise you on your loan options!

Mortgage brokers are licensed and regulated by the Australian Securities and Investments Commission (ASIC) and must adhere to strict codes of practice to ensure that their advice is in the best interest of the borrower (BID). Mortgage brokers also have to be qualified to offer credit advice.  Multi Choice Mortgage Brokers are an approved MFAA member and as such, must adhere to the minimum standards of education and ongoing training. We are also a member of AFCA, the Australian Financial Complaints Authority, the industry ombudsman protecting the rights of every borrower and therefore we are obligated to offer professional credit advice that is in the best interest of the borrower. 

A mortgage broker will, therefore, be breaking the law if they recommended a home loan that was not in your best interest.  This legislation (BID) gives the borrower peace of mind to use a broker rather than going directly to the bank because the banks and their lending staff do not fall under this Best Interest Duty legislation and so, one could say, that the mortgage broker’s advice would be more dependable, more impartial and more professional! 

You can find out more about these regulations, how to check that an advisor is registered, and how to make a complaint on ASIC’s website.

A mortgage broker is a credit advisor who specialises in mortgages. They will work with you to help find the most suitable home loan for your situation, providing advice and support throughout the entire process. They will then apply for the mortgage on your behalf.

A mortgage broker’s job is to advise and help the borrower. They do this firstly, by using software and their experience to help the borrower choose the right loan from the right lender from all the different lenders in the market.  Secondly, they remove the administrative paperwork headache from the borrower by lodging the loan application with the chosen lender.  

The broker works for the borrower and not the bank!  The bank however pays the broker for introducing the client to the bank, which makes it a fantastic service for the borrower because the broker does not have to charge the client a fee for their professional time.  The benefit to the borrower then, is better rates and better approval success, because the broker has both the use of specialised software and knowledge of the different lenders policies.  Simply, the borrower’s chance of a successful loan application is greatly enhanced because it allows the borrower the opportunity to find the best deal from a selection of lenders who are more likely to approve their loan.  The broker arranges the loan application for the borrower, completes all the paperwork and removes the stress and the hassle of dealing directly with the banks, all without having to charge a cent! That’s why over 70% of borrowers use a mortgage broker!

The process may vary slightly from broker to broker. However, the general process should be:

  • You discuss your financial situation and the type of home you’d like to buy with the broker.
  • The broker finds a variety of suitable home loan options and explains them to you.
  • Taking their advice on board, you choose the mortgage you’d like to apply for.
  • The broker completes the application on your behalf.
  • The brokerage service at Multi Choice is completely free of charge, so the only payments you’ll make are to the lender.

A credit score is a numerical rating showing how trustworthy you are when it comes to borrowing and repaying money. It’s based on your previous credit history, including how much you’ve borrowed, the number of credit applications you’ve made, and whether you pay on time. The higher the score, the better your reliability, and the more attractive you will be to potential lenders. While some companies score differently, the score tends to range from zero to 1,200. Mortgage brokers typically obtain your credit score rating prior to selecting a particular lender for you to ensure that they approach the correct lender for you.

When it comes to a high-value loan such as a mortgage, your credit score is extremely important. As well as making it more likely that your application will be accepted, a good credit score will also give you access to better rates and a wider range of mortgage products.  Your credit score will ultimately determine which lender will be prepared to offer you a loan and that in effect, may determine the rate of interest that is offered to you.  A poor credit score can be repaired, so if required, talk to your broker about your credit history before making a loan application. 

If you have a low credit score it does not mean that you won’t qualify for a home loan, but it may mean that you will have fewer lenders to choose from.  You might also be restricted to a lower LVR meaning that you will be required to have higher deposit funds. If your credit score is a concern to you then give us a call and we will order a report for you and then we’ll offer practical advice on how you can improve your score.

When you apply for a mortgage, or any other type of credit, the lender will run a credit check. As the number of credit applications you’ve made is part of what affects your rating, this check can cause your credit score to go down. This is fine if you’re only making one mortgage application.

However, if you’re shopping around for a loan, applying directly to the bank each time will cause you to lose more points. A mortgage broker can find a variety of mortgage products and suitable lenders for you with just one check, keeping your credit score intact.   Multi Choice Mortgage Brokers have the knowledge and the experience to interpret your income, your expenses and your credit score and translate that into the right choice of lender for your greatest chance of success with the first application!  Do it with a broker and you protect your score!

Your borrowing capacity is determined by your income and your living expenses and refers to the maximum amount of money a lender would be prepared to lend you. This varies greatly between lenders, which is why many borrowers use a broker who can quickly work out which lender will offer you the largest loan.  Use our borrowing calculator to work out your potential borrowing capacity.

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