Brokers complete the work that used to be done by the banks, guiding the borrower through the process, ensuring that the product they recommend is in line with their goals and meets their requirements and objectives.. They analyse living expenses and explain the costs involved in the process to simplify the application process.

The Mortgage Broker analyses the clients circumstances and documentation to see whether this will fall under a prime home loan or a non conforming loan. If the credit score is below 650 or there is a small paid default the Mortgage Broker will need to lodge this loan with a lender that has appetite for this scenario. If the applicant has bad credit or is Self Employed without up to date tax returns the mortgage broker will need to look towards lodging this loan with a non bank lender that accepts bad credit home loans or for Self Employed a Low Doc Loan is required.

All documentary evidence is gathered by the broker to support the application, servicing demonstrated by completing a lenders calculator and collated for a fully compliant submission meeting the goals and objectives of the customer. Data entry is completed by the broker into the lenders system. The broker also orders and follows up valuation and pricing requests.

Once the application is with the lender, the broker follows up to keep the application moving updating the customer all the way to settlement and beyond.

Brokers are currently paid an upfront fee with a deferred payment known as trail. Should the loan be paid out or refinanced within 12 months a full claw-back is taken meaning the upfront amount paid to the broker is returned to the lender in full. For trail to be paid, the loan must be conducted well and not fall into arrears.

The customer receives an annual review from the broker to ensure the product still meets their needs.

The broker provides a service to the bank and the borrower.