Mortgage Broker Requirements: Is Your Loan Specialist Legit? | Intellichoice Finance

Mortgage Broker Requirements: Is Your Loan Specialist Legit? | Intellichoice Finance


The real estate market is not a perfect industry. Mortgage fraud and loan scams are real in the Australian market. There are scammers that are going after clients that are not aware and prepared to identify such frauds.

It is important to be able to identify if you are working with an authentic and licensed mortgage broker to be able to avoid the dodgy ones in the real estate business.

The basic concept that you'll need to understand is the different types of loan scams. Knowing which ones to avoid keeps you far from connecting with the people who'll do more damage and danger, instead of helping you secure a mortgage in Australia.

Loan Scams

This type of fraudulent activities usually starts with an out of the blue email or phone call. They will usually offer low-interest rate with no credit checks required, regardless of how bad your credit score may be. Such opportunities makes you believe that what they offer is an easy and fast access to a loan approval.

Document Fraud

Some mortgage brokers will give you the idea of falsifying details and documents on your application. They can either encourage you to inflate your income, change the value of your home valuation, or offered with a scheme that would likely increase the chances of your approval, while breaking a few rules followed in an ideal loan application setting.

Mortgage Fraud

Be careful to who you share your personal details with. Hard core fraudsters can steel your information and extract money from legitimate banks and lenders using your identity.

How to Spot an Authentic Mortgage Broker

Mortgage brokers are not bounded by law to work in your best interest. However, you may want to work with a mortgage broker that genuinely wants to help you secure the right way and fit for your financial situation.

A genuine mortgage might not be able to give you the best and the most competitive interest available out there, but they will always offer you a loan that is within your financial means. Consumers are protected by law in terms of granting loans, within a potential clients capacities to pay, thus going beyond the financial capacities of client - whether by falsifying their financial details or other documents is punishable by law.

You can check the Australian Securities and Investments Commission to see if the finance service or the mortgage broker that you are working with an authentic and licensed broker.

An authentic mortgage broker will also provide you with a credit guide that gives information about the commision they receive, from the bank or lender, the list of lenders they can arrange you a loan with, known as the lender panel, as well as the 5Ws when filing a dispute with your broker.