Brokers Trap #1: Everything your loan broker should be open about

Everything your loan broker should be open about

There are many types of loans on the market. A good broker should present you with a number of options and clearly explain their reasons for recommending the loans that they do. If you’re busy trying to find the perfect loan, be careful of the broker that you decide to use.

Unfortunately, you will deal with many brokers with hidden agendas who just see you as a quick commission. Many will promise to find you the best loan they can, only for you to end up even further away from your dreams than before.

What do you need to know?

Be especially wary of brokers trying to sell you dangerous interest-only loans. These loans have a cheaper repayment for the first few years, but that’s because you’re only paying interest and nothing off the loan itself. When the interest-only period ends, typically after five years, you’re going to be up for much higher repayments. These loans may suit your financial needs at the time, but be careful as they can leave you in financial hardship.

What should your broker tell you?

There are so many types of loans on the market. A good broker should present you with a number of options and clearly explain their reasons for recommending specific ones.

A broker is legally obligated to follow responsible lending laws, meaning that they shouldn’t put you into a risky loan. In order to do this, brokers must assess your income and expenses in order to find the right fit for you. All of this information is in a document called a credit assessment. Be sure to request a copy, as brokers don’t have to offer you this document. 

Are all brokers trustworthy?

It’s important to be wary of brokers trying to sell you on interest-only loans. These loans do have a cheaper repayment amount for the first few years, but that’s because you’re only paying the interest and nothing off the loan itself. When the interest-only period does end, you’re going to be paying a much higher amount. Although these loans may sound good at the time, you should be wary as they can leave you in a difficult financial position later on.

A good broker won’t pressure you into purchasing a loan. If your broker is pressuring you to sign up to a loan before you feel that you’ve received all the information that you need, it’s a red flag.

Our finance specialists will go above and beyond to find a loan that’s right for you. We won’t pressure you into anything, which is why our service is obligation free until we get you the perfect loan.

In four simple steps, you could have the perfect loan that you’ve been looking for with Tiger Finance. Call our finance experts today for an obligation free consult, where we will tailor-make a loan to suit your needs.  We will then negotiate with hundreds of lenders on your behalf, before getting you approved and settled in your new loan. It’s that easy!