Refinancing not only allows access to better interest rates, it can also:

1. Allow you to consolidate personal loans, car loans and credit cards into your home loan as a separate split (to take advantage of the better interest rates)

2. Pull out cash to use a deposit for an investment property

3. Pull out cash to purchaese a car or improve your home

4. Access to offset accounts and home loan packages

... and these are just the easy examples

Sometimes, it can be quicker to go direct to the bank....but which bank will you go to?

A major part of the reason why you would use a broker is figuring out which bank is the best option in YOUR situation. There are banks that a better for investors, others who deal with bad credit, some that prefer first home buyers, others who deal better with self-employed clients. This is where a broker can prove invaluable - as we're lender agnostic.

Additionally, mortgage brokers are legally bound by a "Best Interests Duty" - which means we legally have to act in your best interests. If you go direct to a bank, they don't have that requirement and can often try and sell you on products that make them the most money instead of products that will save you money.

As a final point, I keep in touch with my clients instead of looking at them as a transaction. I've programmed into my processes that I call clients at a minimum of every 6 months to check their rates and that the structure we've set up still works for their goals.

This depending on 2 things:

1. The current demand for loans at the lender where your application has been lodged

2. How quickly you can provide the information and documentation required to prepare the application

As a rough guide, a standard refinance can usually be completed in 2-3 weeks

This depends on which state you're in, but generally speaking the costs involved in a refinance are:

1. Goivernment transfer and mortgage registration (usually around the $500 mark)

2. Outgoiung lender discharge fees (usually around $350)

3. Income lender establishingment fees (can be around $300 - but not all lenders charge them)

Keep in mind, a broker must act in your best interests - so the rule of thumb that we operate on is that if it doesn't start saving you money in the next 8-12 months, then we don't proceed unless there's another benefit associated (offset account/cash out/debt consolidation). These costs are not paid up front. They're usually factored into the loan as it is refinanced.

In terms of how a mortgage broker is paid - there's no cost to the customer. We are solely paid a commission by the lender who we settle your loan and those commissions are standardised in nature - so it doesn't matter who we settle your loan with, we'll get paid the same.

Through our aggregator, we have over 70 lenders on our panel - so there's almost sure to be someone offering a solution. If we find the solution with someone not on our panel, then we can request an exception so we can write the deal.

Each individual mortgage broker must complete both a Certificate IV and a Diploma in Finance and Mortgage Broking, at which time we can join an industry body after passing criminal history and credit checks. The industry bodies are the Mortgage and Finance Associate of Australia (MFAA) and the Finance Brokers Association of Australia (FBAA). After we have joined the professional body and selected an aggregator, we can apply for a registration with AFCA (Australian Financial Compliants Authority) - the government body that deals with complaints in the finance/financial advice space. After this, we can then apply to each individual lender for accreditation on their products.

So there are many hurdles along the path to make sure we're qualified to talk about and write to the loans we are offering.

Ask any mortgage broker you deal with for a copy of their Diploma and FBAA/MFAA membership or their AFCA registration. If they can't provide it then you should not provide your business to them.