The Biking Broker Newsletter - 25th August 2009
12 Questions to Ask Before Using a Finance Broker
Getting a broker to arrange your loan can save a lot of time and hassle, but it is important to ensure the service you expect is the one that’s delivered. Asking these 12 questions can help you ensure you have a great experience with your finance broker.
1. Does your broker have a wide range of home loans from a wide variety of lenders, e.g. banks, and non-banks? The wider the choice, the better the chance of finding the loan that suits you.
A: Jaimie Cook, The Biking Broker, has access to over 25 residential lenders, their commercial arms and 8 equipment finance lenders.
2. What are the qualifications and experience of your broker, even ask for references from previous borrowers? Are they a Mortgage and Finance Association of Australia (MFAA) member? Have they completed training courses?
A: Jaimie is a full member of the MFAA and holds a Cert IV in Financial Services. Check out the testimonials on this web site!
3. Ensure your broker is not an agent for one lender in disguise? Some lenders now operate as brokers too so establish with any broker representative exactly what their role is.
A: The Biking Broker is a fully independent broker. A full list of available lenders is listed in The Client Services Guide.
4. Will your broker disclose all commission and payments received so you can judge whether a particular loan recommendation is being influenced by how much the broker will be paid?
A: A schedule of commissions will be provided by The Biking Broker when loan products are discussed. A full list of residential commission levels is listed in The Client Services Guide. When a loan and the amount of the loan is determined, you’ll be supplied with a dollar value of the commission The Biking Broker receives.
5. Does the broker charge a fee? Many brokers will not charge borrowers for using their service, others will, so enquire about fees at the outset.
A: The Biking Broker’s services are free for residential mortgage loans above $50,000 and for equipment finance.
6. How are the loans The Biking Broker offer researched and rated? Good brokers should be able to clearly outline their criteria.
A: Please refer to the Choosing the Best Loan Option page on The Biking Broker’s website.
7. Ask your broker to provide a formal comparison of any loans recommended including the upfront and ongoing fees and the AAPR (average annual percentage rates).
A: Provision of comparison rate information is compulsory under legislation. Clients will be supplied with these when individual loan products are discussed.
8. Have I been given unbiased and correct information? Always do some double-checking yourself to satisfy yourself.
A: The Biking Broker will supply detailed loan information on the loan offered, this information can usually be confirmed on the lender’s web page, just ask for the URL.
9. Check what service is offered by the broker after the loan is negotiated. Will the broker be available for subsequent loan enquiries? What happens if there is a dispute between you and the lender?
A: The Biking Broker is always available to assist with loan offer documents, settlement issues and post-settlement issues such as ensuring the lender has got everything right and is prepared to take any issue you have to the lender on your behalf. As a last resort, The Financial Ombudsman Service can be contacted to resolve issues with lenders and general insurance companies.
10. Will your broker comply with the Privacy Act to ensure the security of your personal and financial details?
A: All personal details are treated in absolute confidence. Personal documents are secured in locked cabinets or by password and securely destroyed when no longer required to be held by The Biking Broker.
11. Does your broker have professional indemnity (PI) insurance? This safeguard will help you in the event of legal action.
A: The Biking Broker has PI Insurance covering claims within industry standards.
12. What if I have a dispute with my broker?
A: Please, always contact The Biking Broker first. My main goals are to get the most suitable loan for you that I can and to deliver exceptional customer service. If I can’t satisfy your complaint you can contact my aggregating firm, Astute Financial Management for conflict resolution. As a last resort, the independent Credit Ombudsman Service Limited (COSL) is available if there is a dispute you can’t resolve with The Biking Broker directly.
You can be sure that when using The Biking Broker that all of the above steps will be covered and that you should always feel comfortable raising concerns and asking questions throughout the loan process. Should you wish to discuss your options for obtaining finance please contact me at any time.