Questions to ask your loan consultant

With so many types of home loans available today it's wise to have a list of questions ready to ask your loan consultant so you know who you're dealing with, what loan you're getting and exactly what you'll be paying.

What experience and expertise do they have?

Don't be afraid to ask how long your loan consultant has been working in the industry or what their qualifications are. This person is going to help you make one of the biggest purchases of your life so make sure they are someone you trust and have confidence in.

What are their fees and commissions?

Mortgage brokers in various jurisdictions in Australia are legally obliged to disclose their fees. Although there may be other fees payable in the loan process (e.g. lender and government fees) the majority of brokers offer their service to the borrower free of charge as they receive their commission/fee from the lender.

Questions to Ask About A Suitable Loan for You

• What percentage of the value of the property can be borrowed?
• Will I have to take out lenders mortgage insurance?
• What are the types of loans are available?
• Which loan will suit my needs and lifestyle?
• Which loan offers the best variable/fixed interest rate?
• What flexibility does the home loan offer? i.e. credit card, redraw facility, ATMs etc.

Tip: Do some of your own research on the types of loan products available before your initial meeting. It'll be of great help when exploring the loan product options.

Questions to Ask About the Loan Product

• What is the interest rate on the loan?
• Is it fixed or variable?
• Can it be split into fixed and variable?
• What are my weekly/fortnightly/monthly repayments on the loan?
• How much is the loan establishment fee?
• And what does it cover i.e. valuation and lenders legal fees. Are there any ongoing monthly/annual fees?
• Will the lender give pre-approval with no upfront fees?
• What is the level of service offered by the lender?
• Do they offer internet banking, branches, EFTPOS and ATM, credit cards etc. Are there any additional fees for these services, and if so, what are they?
• Are there any costs if you discharge the loan, decide to change the loan products, want to increase your repayments or make a lump sum repayment?

_{Source: MFAA}