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So, What does a Broker actually do?

In a time of doubt for the financial services sector, the profession of brokers far and wide is undergoing an evolution. The recent Haynes Royal Banking Commission has thrown a rather harsh spotlight on the brokering profession amongst its findings of misconduct in the big 4 banks. In the final report document, Commissioner Haynes has called for a re-examination of the broker remuneration model in order to bring transparency to the process and reinforce brokers’ focus on consumer outcomes.

 

These findings, however, have led to the question for many consumers and those that do not work within the orbit of financial services: so, what does a broker actually do?

Or, more specifically, what do they do that you can’t do yourself? Well, a good broker does more than offer you the best interest rates on the market. They evaluate your financial position, your future goals, your ability to make repayments and a range of other things that sometimes aren’t obvious factors to clients.  .

 

It’s not only the knowledge of the industry and the network that comes along with it that borrowers tap into when they partner with a broker but the fact that brokering loans is our job. The leg work involved in settling a loan, particularly for clients that have a complex backstory or impaired credit, can be a very long winded and confusing process. Insert sentence that is very complicated. Negotiation, repeat business, understanding a business and what it needs.

 

Finance brokers know turnaround times

The choices now available in the mortgage market can seem limitless and completely overwhelming. You can choose to research the subject, the lenders and their products yourself, or work with a finance broker who already has that knowledge.

 

Finance brokers give you choice

All finance brokers have a panel of Lenders from which they recommend a loan. They have to become accredited with the lender to offer their product, and are required to keep up-to-date with their latest offers.

 

Finance brokers can help find the right loan

The best deal is not necessarily the cheapest rate. A good finance broker will examine your circumstances and future plans to recommend a loan that is right for you. Having an appropriate loan which works for you can help you build wealth and avoid a loan that will end up hurting your business in the long run.

 

Finance brokers can help you avoid pitfalls

Many products seem to offer a great deal but they could have penalties, fees and charges you may not be aware of. Or, they may not offer the flexibility you require in the future. A finance broker can help you avoid taking out a loan you might later regret.