Mortgage Broker

What do they do that’s so important?

Mortgage brokers provide competition and choice, and give borrowers lending options that most people are just not aware of, and these options enable borrowers to get better outcomes.
- Peter White, Finance Brokers Association of Australia (FBAA) Managing Director

Advice to choose your loan

Banks used to be the only place to look for a loan. Problem is they would only offer you their available products, even if it’s not ideal for you. Also, just for enquiring with a bank, you’ll likely be issued with an enquiry on your credit record, tainting your credit rating and decreasing your eligibility to apply elsewhere. Mortgage brokers were born bringing much-needed competition and better outcomes for clients. We source the lenders who’s policies meet your personal situation and narrow them down to the best value options.

Some Mortgage Brokers have favourites

Be warned though some mortgage brokers aren't completely straightforward and transparent. When they're searching for the best loan to fit you with they may only choose from their top three or four favourites. This is especially true for many franchise branded mortgage brokers. Some brokers are only accredited with three or four lenders because it’s easier for the broker to only have to learn the policies and processes of a few lenders.

But Grace is different...

We have no favourites. We scour over 30 different lenders and banks and take the time to learn each banks policy and procedures. We compare their policies, hidden fees and anonymously calculating your borrowing capacity with each individual lender. Unlike walking into a big bank, that means no marks on your credit record!

The loan products with all your required features for the cheapest price is the one we recommend. Then we leave it for you to decide if you want to go forward with it or one of the others on our shortlist. We will even recommend you not getting a loan if we think that's the better option for your circumstance.

How do you get paid?

Mortgage brokers are paid in commissions from the bank a month after the settlement of your loan. These commissions do not come out of your own loan, but are paid directly from the bank to our firm. If you refinance your loan within 18 months, your broker will be 'clawed back' the original commission that was paid. That means the bank debits the commission originally paid directly from our bank account. Since the commission represents a tiny percentage of your loan amount, smaller loan sizes pay less and make if difficult to recuperate our costs. Loan amount less than $350,000 will incur a once-off fee of $750 which is just enough to cover our costs in most cases. This amount can be added to your loan as long as the subsequent LVR is less than 80%.

For meetings and subsequent work to analyse your scenario, research lenders and calculate your capacity with specific lenders, we charge a fee of $75. It has become necessary to cover our costs this way as we are often doing many hours of work in the research phase without a resulting loan.

For car loans, we do not receive commissions, but we do charge a fee which is capitalised into your loan amount. This is a once off fee of $650 and it is paid by the lender after your loan has settled.

Grace Loans and Bethany Massey are Authorised Credit Representatives of BLSSA Pty Ltd, Australian Credit Licence number 391237. Authorised Credit Representative nos. GL: 523940, Bethany: 513202. Content of site may not be fully up to date as lenders are constantly changing their loans and policies. Any advice provided on this website is of a general nature not taking into account your personal objectives and situation. Such matters are important to consider prior to taking any action. Please make an appointment to discuss your specific situation so that appropriate advice may be given with regard to suitable products using current information.