What your broker should do for you – all you need to know.

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If you are looking to finance for your next purchase, and are considering whether to use a Broker or the Bank directly, then read more here on the pros and cons of both.

If you are using a Broker then there are a few considerations, after all not all brokers are the same. We have compiled some important checks for you to consider before you choose your Broker.

How many lenders do they have on their panel?
The role of a finance broker is to represent your best interests and search the market for the best deal. They should have a strong, diverse lender panel offering a range of product options. A 15-lender panel should be the minimum a finance broker has available, to be able to provide you with sufficient options.

What experience do they have?

Do your background checks and ensure the Broker you are considering appointing is experienced and reputable.

Google, ProductReview.com.au and Social Media Reviews

A great gauge of a Broker’s credibility is the feedback from customers who have previously used their services. No business is perfect, and negative reviews are likely in any business but the general feedback on these review platforms will provide you with some comfort of the brokers credibility and professionalism. Look for general trends in the feedback, both good and bad.

What fees do they charge?

A finance broker must disclose their fees upfront. The Credit Quote details what the maximum fee payable is, but prior to proceeding with the loan application request a detailed breakdown of the fees payable. Broker Origination Fees are a service fee and these are generally determinable upfront. This cost is often added to the loan.

Is there a Conflict of Interest?
A COI arises when the Broker puts their interests or the interests of a third party, before yours. There is potential for this if you have been referred to the Broker by a third party – such as a car dealer or alike. Regardless of the relationship in this scenario, the Broker must ensure they put your interests above that of the third party. They have a legal responsibility to do so.

Request an ‘obligation free’ quote?

Most reputable finance brokers will provide you with a detailed quote for the proposed loan, which will include the lender application fees, loan term, interest rates, repayments and loan amount. Transparency is important, and reputable brokers will always provide you with a quote upfront. To provide a detailed quote, more information may be required to ensure the accuracy.

Insurance Products

Loan Protection and Motor Vehicle Warranty options are not compulsory products for your loan; however the Broker must offer you the opportunity to purchase these products, In most cases, they are only available at the inception of the loan and cannot be purchased after settlement.

Below is a list of the documents you should receive prior to a loan application being submitted to a Lender:

Credit Guide and Quote

This is a service agreement between you and the broker detailing the terms of service, and the obligations of each party. It discloses the potential fees payable by you, for the Broker’s service.

Privacy Form

A Broker needs to gather your personal information to be able to quote your repayments and interest rate accurately. A signed Privacy Act allows the broker to gather and store your information.

Credit Proposal

Before an application is submitted to a Lender, a Credit Proposal must be issued to you outlining the loan structure and recommencations. Three options or comparisons are generally provided, based around your requirements and objectives.

The team at yesapproved.com.au are fully transparent when it comes to our service provisions. We will help guide you through the process, search the market and get you the best deal from one of the lenders on our diversfied lender panel.

The information is intended to be of a general nature only. We do not accept any legal responsibility for any loss incurred as a result of reliance upon it – please make your own enquiries.

Any advice contained in this document has been prepared without taking into account your particular objectives, financial situation or needs. For that reason, before acting on the advice, you should consider the appropriateness of the advice having regard to your own objectives, financial situation and needs.

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