Genuine Lenders?

[MrsMiggins]

We are considering doing a big debt consolidation & do not fit many of the conforming lenders criteria.

I know we can apply for loans with non-comforming lenders which, if approved, would be at a higher interest rate, but considering the debts we are trying to consolidate, we would still be far better off.

What I need to know is: how do we know that the lender or broker we are dealing with is reputable? What accreditations should they have? Is there a list somewhere we can check them against? Are there questions we should be asking of them? What could happen if we did go with a lender or broker who turned out to be dodgy?

TIA! :)

[andie_pandie]

Hi MrsMiggins

What a great question. With a Broker or Mobile Lender Direct with the bank always ask for qualifications and a biggie ask how long they have been lending for.

I myself have been lending for 9yrs and it is a ever changing industry and I believe that someone whom has been in the industry for a long time has a great deal of knowledge to offer over and above lending. This does not mean that someone new to the industry does not have the lending knowledge as they should have at least done their certificate 4 to become a broker.

They should also belong to either the MFAA (Mortgage & Finance Association of Australia) or the FBAA (Finance Brokers Association of Australia) these are the professional bodies for Mortgage Professionals. Both of these Associations have a Find a member area where you can type in a name and it shows whether you are a accreditated member. I myself are with MFAA.

They should also belong to a Dispute Resolution Service such as COSL (Credit Ombusman Service Ltd), if you ever have a major problem with a Broker or Lender you must first approach them to resolve the issue and if you have no resolution then you can contact COSL.

You mentioned that you may need to go through a non conforming lender, sometimes people believe this is the only avenue for them however this is sometimes not the case. A good broker should give you options and not just look at how much they are going to be paid.

Also note most brokers get paid by the bank for a mortgage and should not be charging over and above this and they must disclose how much they are being paid by the bank that you are going to go to. You as a client should only being paying government fees, bank establishment fees, and solicitor fees.

I hope this has been informative for you and I have answered your questions. If you need any further assistance please let me know.

[MrsMiggins]

Thank you so much.

Yes, you have answered my questions! Very helpful! Thanks again!