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Given the current economic climate, achieving 20% growth in one year is no small feat. That is exactly what we are honoring with Australia’s Fastest-Growing Mortgage Brokerages: Fast Brokerages 2023. In fact, Australian Broker News (AB) is featuring 12 Fast Brokerages. And even more impressive is that eight of those cohort members have been in business for three years or less.
In this article, we will outline these award-winning brokerages and which Australian states they are in. We will also look at five reasons to choose a broker over a bank and how you can spot a good mortgage broker.
There are several reasons AB recognized 12 Fast Brokerages, according to industry expert Stephen Michaels, managing director of Catalyst Advisers. Michaels said that each maintains excellent relations with multiple banks to capture ideal interest rates, processes, credit policies, and risk appetites. He added that each has also mastered the ins and outs of complex credit policies and keeps up with changing times.
“It’s easy to bury your head in the sand and think, ‘The market’s down. Capacity is down 30%. People can’t borrow as much, and no one’s buying,’” Michaels says. “We can either sit back and think, ‘I’m just going to wait,’ or start sharpening our tools.”
Let’s look at AB’s 12 fast-growing mortgage companies in Australia:
Here is a breakdown of where the 12 Fast Brokerages are located:
Peter White, managing director of the Finance Brokers Association of Australia (FBAA), underlines how tough it’s been for the 2023 Fast Brokerages to push through.
“The constant rise of interest rates over the last 12 months or so means you think you’ve got the deal one minute, then potentially the next you don't,” White explained. “That can be a fairly challenging environment for anyone to actually work in, so you need to be tenacious, keep going and don’t get despondent.”
Typically, mortgage brokers offer better rates than banks. Mortgage brokers usually have two significant advantages over banks. One advantage is that mortgage brokers offer access to a wider selection of mortgage products than banks. The other significant advantage is that mortgage brokers can leverage their relationships with numerous lenders to get better rates for their clients.
To determine if a mortgage broker is good requires that you do your homework. When choosing a great mortgage broker—i.e., the mortgage broker that is right for you—you can follow a few steps. Let’s break down how to know if a mortgage broker is good.
Here is a breakdown of each to determine if a mortgage broker is good for you.
Before working with a mortgage broker, ensure they are properly qualified and registered. In Australia, mortgage brokers must register with the Australia Securities and Investments Commission (ASIC). If they are not registered, they are not authorized and therefore are not trustworthy.
Whole-of-market means the broker has access to all mortgages available on the market at the time. Other brokers, meanwhile, only have access to mortgages from a select panel. Others still are tied to certain banks or building societies and will recommend only loans from within their own company.
Compare the fees of different mortgage brokers to see if you can maximize your savings and still get great service. You should also compare how mortgage brokers will take their fee. Brokers can either be paid upfront, after the mortgage is agreed, or roll their fee into the cost of the mortgage. Other mortgage brokers will have some combination of the two.
Compare the services that different mortgage brokers can provide. For instance, some mortgage brokers are web-based and provide their services completely online. Others are more traditional and work face-to-face or over the phone. Some combine the two.
Read reviews and listen to word of mouth when comparing mortgage brokers. Mortgage brokers occasionally host reviews of their services on their websites. You can also read what other customers have said on their social media platforms and review sites, including Google.
When looking for a mortgage broker, your schedule matters. It is therefore important that you check availability. Check how quickly they can start working with you. You can also find out what their working hours are. This will give you some idea of when you can contact them for help and advice. Try and find a mortgage broker who can work around your schedule.
After you have done the brunt of your research, it is important to value your own instinct. Because it is such an important decision, you need to feel comfortable working with your broker.
Remember: you have to share personal information and work occasionally under stress. However, finding a good mortgage broker, at the right price and that offers the right services for you, will help make the process run much more smoothly.
A broker’s job is to determine the needs of the borrower. Once this is established, the broker then shops among finance lenders for a loan package that suits the borrower’s situation. Let’s look at some key reasons to choose a broker over a bank.
Here is a closer look at each to see why it may be a good idea to choose a broker over a bank.
Banks often work on behalf of banks, whereas mortgage brokers usually work for you. While mortgage brokers are paid by lenders, they get paid by the lender that you decide on. This means it makes sense for mortgage brokers to secure the right deal for you from a particular lender. The most successful mortgage brokers build careers by securing the best deals for each individual borrower.
Mortgage brokers have no obligation to work with any single institution and are free to work with any lender. This means that mortgage brokers can compare home loans from banks and other lending institutions. A bank does not have the same freedom. Plus, brokers have intimate knowledge of all the options available to borrowers at any given time.
Good mortgage brokers build relationships with people. Their business depends on it. Building personal relationships is a great way to understand which deal will work best for you. Mortgage brokers look at your financial needs as an individual, a family, or a couple. And they can assess your needs across the financial spectrum, whether it be personal, business, or home.
Mortgage brokers make it easy for clients by knowing banks, bankers, loan terms, and loan products. Brokers can sift out what will work for you and what won’t. They know where to go and what you need to provide to receive the loan you are looking for. Plus, they make it easy for the mortgage lender to approve.
All of this is to say that mortgage brokers save you lots of time and money. When going with a broker over a bank, you usually save time and make it easier to get the proper financing for the property you want.
Mortgage brokers also continue working after the deal is done. Why? Because they want to build long-lasting relationships. They do this by remaining focused on understanding and meeting the needs of each individual borrower.
When determining the best fast-growing mortgage companies in Australia, it is important to know where to look—i.e., which Australian state. It is also important to know what mortgage brokers have to offer that banks don’t, and how to be selective when working with one. When considering working with a mortgage company in Australia, it is also important to determine what they themselves prize above all else.
To find out more about the best fast-growing mortgage companies in Australia, check out the companies we highlight in our Fast Brokerages 2023 section. Here you will find the top performing mortgage professionals across Australia.
Did you find this information on fast-growing mortgage companies in Australia useful? How about the importance of using a mortgage broker? Let us know in the comment section below.
