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  • Writer's pictureAshley Van Rosmalen

What Is a Finance Broker & How to Choose One?


A financial broker is a third-party service that facilitates a transaction between you (the customer) and the seller (Lender/Bank). A broker communicates and coordinates on your behalf, with the bank or lender, so you don't have to.


There are many types of financial brokers -

  • Investment Brokers

  • Mortgage Brokers

  • Business Brokers

  • Asset Brokers

  • Insurance Brokers


F&I Partners having an in person finance broker meeting with two customers.


How Does a Financial Broker Help?


Financial brokers are a valuable resource to save you time by offering suitable options and processing your application from quote through to settlement. Finance brokers are passionate and knowledgeable; therefore, you can take advantage of that experience. Brokers have access to current lenders policies and offers, so you don't have to navigate it on your own.


Brokers do this daily and know how to present your application to the lender favourably, which increases your chances of approval. This will free up your time and give you peace of mind that your application is in good hands.


A misconception is that if brokers do all this for you, it must be expensive. This isn't always the case because in most instances lenders will actually pay the broker some commission direct for your business. Therefore, in instances like these there are no ‘out of pocket’ expenses for you in respect of a broker's service.


How to Choose a Broker?


The first step is choosing a broker who specialises in the type of brokerage you require. Lots of brokers have a niche, which determines the lenders on their panel and their financial network. Browsing a broker's website should provide a lot of information about what type of brokerage they offer.


The second step is reading testimonials from previous customers. These can be found on Instagram, Google Business Profile, Facebook, LinkedIn and their website. Paying attention to the results driven outcomes the broker has helped the client achieve. Alot of testimonials will reference personality traits, however if you are seeking an outcome, it's important to ensure they have evidence they can deliver on that too.


The third step is researching a broker's background to give you the confidence in their knowledge and experience, that they can provide a high value service and depth of understanding when exploring your options. Anyone can write a website, so ensuring there is evidence supporting their claims will give you certainty of their abilities.


Lastly, the finance industry is heavily regulated in order to protect consumers and ensure financial practices align with the public's best interest. This is great because it ensures loans which are being facilitated are not unsuitable and will not put a customer into financial hardship. Check the broker you're considering is regulated by a professional body. Some professional bodies which regulate the finance industry are FBAA or MFAA.


If you are looking for a help finding your next loan, book a free appointment below. Our friendly team are equipped with the knowledge, lenders and experience to make finding the right loan a seamless and enjoyable process.



Disclaimer Statement

The information provided in my blogs is general in nature, and I always recommend you seek advice from a professional financial advisor before making any decisions about your own finances. Your full financial situation would need to be reviewed prior to acceptance of any offer or product.

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