Why Use A Broker

Why not just go to a bank?

Working with a mortgage broker who knows Geelong and understands the current market in the Geelong region can be save you time, stress and money. 

It is hard for most people to know the best option for their home loan. Which bank? Variable or fixed rate? What about online lenders or credit unions? With choice comes complexity. It can get tricky to navigate through it all. And it can take a lot of your time (and sanity sometimes too).

We will steer you through this to find the home loan that suits your needs and not the need of just one particular bank. We then deal with the lender and manage your application process through to approval and delivery of the funds.

That’s why using a Geelong-based mortgage broker can be a huge advantage. We do this day in and day out. We know the lenders and their products, and we are up to date with any changes when it comes to lender policies, products, and their different lending appetites. We also know what can be done when things get tricky.

In the simplest terms, having a local mortgage broker in your corner makes finding the right loan easier and can save you time, stress, and money.

It’s easy

We start by meeting you ny time and place around Geelong, the Surf Coast or the Bellarine – at home, at work or over a coffee, during the week, at night or over the weekend – we’re always flexible.

It’s fast

We can get things moving quickly. We will work with our lender networks and contacts, looking to secure your finance as fast as possible.

It's all about you

We get to know you personally to understand your unique circumstances. We know which lenders and products will meet your needs because we do this every day.

It saves you money

Insurance on your new property is always a requirement. We can help arrange cover to keep the approval process moving and save you money at the same time.

Why use a mortgage broker - man in suit with briefcase

When is the best time to use a mortgage broker?

It doesn’t matter if you’ve just started thinking about buying, have already found the perfect house and need to quickly sort out your finance, are looking to unlock the equity in your current property, or are wanting to refinance your existing home loan – any time is a good time to explore your options.

The first thing we do is have a chat and get a better understanding of what it is you want. Brokers are, after all, are your finance professionals, so the better we get to know your financial circumstances and long-term goals, the better we can match you with a home loan that is right for you.

It is not just about finding the lowest interest rate — there are other things to consider. For example, if you are thinking about starting a family, flexibility is an important feature. Or if you want to renovate, easy access to equity can help. With so many products, you have so many choices.

Once we agree on the right loan, we take care of the application and get everything in place for the approval process, then see it through to settlement.

How does a mortgage broker get paid?

Like most mortgage brokers we only earn an income from the commission we receive from the lender. These commissions are calculated based on a few factors such as the loan amount, the Loan to Value Ratio (LVR), and the quality of the overall loans we write.

How do mortgage broker commission rates work?
In most cases, mortgage brokers are paid an upfront commission and a trail or ongoing commission for the business they bring to lenders. These commissions are paid to us only once your home loan settles and are based on a percentage of the loan amount and the LVR.

To be clear, mortgage brokers do not work for the banks, although there are some mortgage brokerages that are partly owned by banks and larger lenders. You should ask any brokerage you speak with about this upfront, so you are fully informed. Next Chapter Financial Group is 100% independently owned.

Why do we earn upfront and trail commission?
Put simply, lenders like long-term loans and they will continue to pay the broker trail if the client stays with the same mortgage and doesn’t fall into arrears. Arrears means that your late with your mortgage repayments and this can escalate to default if you haven’t made repayments for 60 days.

That is actually good news for you because it separates the good brokers from the lazy ones.

Brokers who fully understand your financial situation and goals work hard to recommend a home loan that best suits your needs. We also complete regular mortgage health checks to ensure that your loan is still working for you and you are getting the best rate from your lender available. If we have done our job right, you should be comfortably making your repayments with little financial stress and be happy with your lender and your rate.

From the bank’s perspective, they are paying the broker a premium for the quality of the business that they have brought in and for managing the relationship with the borrower.

Isn’t there a conflict of interest in getting paid commissions?
Not necessarily. Mortgage brokers must adhere to the protections set out in the National Consumer Credit Protection Act 2001 (NCCP Act). No matter the commission a broker stands to earn from a home loan, they must not recommend a product that is ‘unsuitable’ based on ‘reasonable enquiries’ of your financial situation.

Many of the major banks like Commonwealth Bank (CBA), National Australia Bank (NAB), ANZ and Westpac have completed studies and have not seen a link between increased commissions and getting more business. For this reason, banks compete on interest rate, not by increasing commissions.

Some specialist lenders or “white label” lenders (broker is the lender) pay higher commissions but these are different business models and loan types and a small part of the market.

Get Started Today

Let us know what you’re looking for so we can help match you with a finance solution that’s right for you.