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Today we are bombarded on all sides by lenders wanting us to borrow from them. There are so many options and variations that it is difficult to understand all the differences, let alone understand how all the fees and charges work. This is where the role of a mortgage broker comes in.

The Role of a Mortgage Broker

It is a mortgage broker’s job to represent and act in your best interests. This is done by establishing what your needs are and then using their professional knowledge to save you time, money, and frustration by helping you identify the appropriate lender for your needs and then actually help you apply and obtain the loan.

In reality a good mortgage broker, like Creative Finance Institute, can directly save you tens of thousand of dollars in fees and interest over the life of your loan. Also by structuring the loan correctly you save time and frustration. You may also benefit indirectly by being better able to create wealth via your mortgage over time.

Issues within the Industry

As described in ‘Why use a Mortgage Broker’ it is a mortgage brokers job to use their knowledge to save you time and money by finding the appropriate loan for you.

Unfortunately the reality is that there is a vast range in the standard of mortgage brokers!

Major Issues within the Indusrty

This could be the topic for a whole book. However the core issues can be summarised as follows:

• Until recently there was little to no legislation governing the industry or protecting consumers.
• There was little to no educational requirement – people with no education and as little as 1 hours training could become mortgage brokers.
• The recent property boom led to a flood of new advisers with little experience as mortgage broking was seen as ‘easy money’. With no experience and little education anybody could buy a franchise or start their own mortgage broking business with the lure of a quick dollar.
• Little to no requirement to disclose commissions – brokers often tried to place more of their loans with one lender in order to obtain a higher commission.

Under these circumstances it is little wonder many people do not end up with the best advice or are downright unsatisfied. After all, it was the same constant level of poor advice that led to the creation of Creative Finance Institute.