Should we go with a mortgage broker?

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phil1147

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We have been offered a nice mortgage with a mortgage broker but i heard that they charge a large fee for their services. Would we have to pay the fee or is it the actual lending institution who pays the fee.

Is there a reason why some people dont like going to brokers for same?
 
Re: Should we go with a mortgage broker???

Depends on the broker, just ask him if there is a fee. TBH if there was no fee you're generally told up front so I would say there is possibly a .5% fee. Some people prefer to deal with a broker because they haven't time or the know how when it comes to choosing the best mortgage package. The broker provides a service to best suit your needs, but unfortunately like all professions their are good and bad brokers. Make sure they deal with a s many banks as possible, some only deal with 2 or 3 and therefore aren't providing an wide ranging service.
 
Re: Should we go with a mortgage broker???

MrMan said:
Depends on the broker, just ask him if there is a fee. TBH if there was no fee you're generally told up front so I would say there is possibly a .5% fee. Some people prefer to deal with a broker because they haven't time or the know how when it comes to choosing the best mortgage package. The broker provides a service to best suit your needs, but unfortunately like all professions their are good and bad brokers. Make sure they deal with a s many banks as possible, some only deal with 2 or 3 and therefore aren't providing an wide ranging service.
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Its the other way around actually. If there is a fee you must be told upfront. Unlikely to be a fee if it hasn't been mentioned but why not ring the broker to confirm!
 
If there is a fee you must be told upfront. Unlikely to be a fee if it hasn't been mentioned but why not ring the broker to confirm!
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From a sales point of view if I was offering a no fee service its the first thing you would hear from me, but if they must say up front that there is a fee I guess they all abide by that (but just in case, ask anyway).
 
the fees should be advised in the TERMS OF BUSINESS - this should be given at the initial meeting -

some people are wary using brokers as they dont think they work for the clients best interest but for the higher commission -

in some instances this is true but the majority of brokers would endeavour to get the best deal for there client regardless of commission as in this day and age they are only paid a basic wage
 
thanks guys... by the way a nice mortgage is a mortgage amount i didnt think was possible with my wages!!!
 
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