Types of Mortgage Brokers

What Types of Mortgage Brokers Are There?

Mortgage brokers can be some of the most helpful financial specialists out there – with the majority of them being more than capable of finding the right types of home loans for their clients. Offering services such as interest rate comparisons, home loan negotiations and mortgage applications (on behalf of a client), they can be as helpful as they are good at minimising their client’s stress.

But a little known fact is that there are actually several different types of home loan brokers out there – and not all of them operate in the same manner. Here’s a look at some of the different types of brokers and what they do in specific that makes them different.

Online Brokers

These specialists are a fairly new take on the field of brokering; but they are just as effective, if not more so, than their more traditional alternative. They typically work online, saving their clients plenty of time and effort when it comes to submitting their forms and documentation. As the entire process can be managed online, there’s no need to arrange physical meetings, or spend hours travelling to an office to discuss options and so on.

Commissioned Brokers

These types of brokers will often receive commission from a bank whenever they get a new borrower to sign up for a mortgage. This might make them seem a little biased, but in reality it simply means that they won’t get paid unless they get a borrower to take out a mortgage – which often results in them working much harder and being willing to go above and beyond to get their client on board.

Non-Commissioned Brokers

These brokers don’t typically work within the confines of banks and lenders – and as a result, they will often charge a flat fee for their services. This might not seem like the most flexible option, but the truth is that it can be quite beneficial to pay for a service and trust that you are going to receive it in its entirety.

All options can be beneficial, but with the new features made available when using an online home loan broker – it should come as no surprise to learn that most people opt for these experts when applying for a mortgage.