If you are in the market for a home loan then your best course of action is to obtain assistance from an experienced mortgage broker who is also accredited with the national industry body, the Mortgage Finance Association of Australia (MFAA). By dealing with a mortgage broker who is a member of the MFAA you are not only assured of the knowledge, experience and training of the mortgage broker but you also have access to a free and independent dispute resolution process should, for any reason, the mortgage broker or the lender with whom you eventually take out a mortgage loan, not comply with the Association’s stringent code of conduct.
While the level of complaints against mortgage brokers in Australia is very small when compared to the number of borrowers who utilise their services, it is nevertheless a wise decision to work with a mortgage broker who is a MFAA member. A quick, independent and free dispute resolution process is provided by Credit Services Ombudsman Limited (COSL) which is one of the few ASIC –approved dispute resolution entities in the mortgage broker / finance area. Should you have a complaint about your mortgage broker or lender then there is comfort in knowing that it will be handled without the need for lengthy and expensive court proceedings. If for any reason you are dissatisfied with the outcome you, as a borrower still have access to courts if you wish to pursue the mortgage broker or lender. The member mortgage broker or lender, on the other hand is bound by the decision of the Ombudsman.
Seeking the services of a mortgage broker will inevitable save you time and money. If you are working full time or not particularly up to speed with what’s on offer by way of mortgage loans then utilising the services of a mortgage broker is essential when negotiating your first home buyer loan or refinancing an existing one. If you choose to simply approach your own bank for a mortgage it is a rare situation indeed where you will find them offering a cheap interest rate. They will perceive you as a “captured client” who is not likely to compare their loan or mortgage with any of their competitors. Too often borrowers and first home buyers simply apply to their own bank or that of their parents but surveys indicate that by doing so, these borrowers do not receive as competitive rates and terms as those borrowers who apply to a lender through a mortgage broker.
The benefit of using an MFAA accredited mortgage broker is thus three-fold:
1. it saves you considerable time in that you do not have to do the leg-work of running around trying to find the most suitable and competitively priced home loan
2. it saves you money in that the mortgage broker is up-to-speed with any specials and good loan offerings at any given time
3. you have the added protection that in the unlikely event of a complaint, you can access a free and independent dispute resolution process.
