Maximise your relationship with your mortgage broker

I think it is fair to assume that for many borrowers, gone are the days when a 20-year mortgage is kept for the full term without some kind of alternation or refinancing taking place. 

A lot can happen over the life of a loan – in the last 20 years for instance changes have occurred including market reform, fluctuating interest rates, changing regulations, the emergence of new lenders and both the tightening and weakening of lending criteria, to name just a few. 

Thus, for many borrowers, the environment in which their mortgage was first acquired no longer exists or is vastly different, and it is likely that the original loan product obtained may not be appropriate nor the most cost-effective option for current conditions and personal circumstances. 

It is for this reason that it can be incredibly valuable for borrowers to establish an ongoing, working relationship with a mortgage broker, similar to that which may be enjoyed with a financial advisor or other professional consultant. 

By keeping in touch with a trusted mortgage expert borrowers can position themselves to ensure that they remain abreast of developments in the home loans market, and can act on fortuitous opportunities, such as to refinance or expand a portfolio, as they arise. 

I have seen many borrowers discount or even disregard the value that working to maintain such a relationship with a broker can achieve for them.  As a result these people will only have contact with their mortgage consultant periodically when their broker contacts them to make sure all is well. 

It is true that most professional brokers, if they are doing their job properly, will certainly be keeping an eye on their clients’ situations and those who are proactive will let their clients know about new opportunities to refinance or add value. 

However, if these interactions were not being initiated on the part of the broker, I am inclined to suspect that many borrowers would sit on their current mortgage without periodically investigating the newly available options – and potentially miss out on valuable cost savings as a result. 

In my experience, borrowers who maintain a working relationship with their mortgage brokers are at a big advantage, particularly as to do so doesn’t necessarily require a great deal of time.  While yes, it is reasonable to expect that your broker contacts you when attractive opportunities arise, don’t discount the value in taking steps to keep yourself front of mind for the broker so that you are the first client contacted when, for example, lenders release new packages, regulations change, or lending criteria alters in your favour. 

Often this requires only a coffee or lunch every now and then to catch up with your mortgage broker and have a chat about general market conditions and happenings, as well as your personal objectives and plans. 

The information that can be gained from such meetings is often invaluable, as you might find yourself privy to your broker’s concerns and insights into the current mortgage market – which could lead to further opportunities to invest or expand your portfolio. 

In addition, with more of an idea as to your property intentions and what you are comfortable with, your broker will be better placed to evaluate new mortgage options on your behalf. 

As a natural by-product of your effort and hospitality, you may just find that a working relationship with your broker is formed, whereby he or she is naturally more inclined to look out for your interests and alert you to valuable new opportunities as (or even before) they arise – putting you well ahead of other players and potentially saving you precious funds that can be directed to paying off your mortgage more quickly. 

There is no doubt that the home loans market can be a complex place to navigate, particularly for those property buyers who have not had a great deal of experience.  Dedicating some time to developing a relationship with a trusted mortgage broker can help you to make sure that you have an experienced professional watching out for your best interests – ensuring you make valuable savings where possible and have the most effective mortgage package available.

Charles Tarbey is chairman and owner of Century 21.