When taking the plunge into the world of home loans and property investment, the challenge often lies in knowing which expert to approach for help. Mortgage brokers and financial planners, although similar in their professional outlook, cater to different financial needs.
Mortgage Brokers
Mortgage brokers are qualified and must be either licensed or appointed to act as credit advisers. They have in-depth knowledge of loans and options suitable for a range of different financial situations. They negotiate with lenders to arrange home loans and help manage the process through to settlement.
When it comes to talking about a client’s loan structure or interest rates, or the best way to set up a loan, it’s really something that needs to be done by a mortgage broker who is qualified to give credit advice.
Financial Planners
Financial planners, meanwhile, assist with anticipating and managing longstanding financial outlook. They help sort through and select options for investment and insurance, with attention paid to retirement planning, estate planning and investment analysis.
Planners take care of more of the long-term, wealth-creation strategy, as well as super and life insurance, and other sorts of wealth protection insurances. They need to be qualified and licensed to provide financial advice.
A financial planner’s work is wide-reaching and important to your long-term financial health and stability, options relating to loans and refinancing can only be recommended by a qualified broker authorised to do so.
There are some situations where it would be best to include both types of financial professional. For instance, when you are first buying a property it’s the biggest decision you are ever going to make. It makes sense to sit down with a financial planner to review your personal insurance strategy to ensure that if something happens to you and you can’t work that you are protected and the mortgage continues to get paid. Your biggest asset isn’t your home, it’s you and your ability to earn an income that needs to be protected.
The answer?
It depends on your situation – for loans, see a broker, for investment advice, a financial planner. These days however its not uncommon to see one person for both your loan needs and planning needs. Being both a qualified mortgage broker and licensed financial planner I offer what I call holistic financial advice and help you to get your entire financial world in order.
The Loans Analyst is a Full Member of the MFAA (Mortgage & Finance Association of Australia) as well as being a member of the PIPA (Property Investment Professionals of Australia). We have been in operation since 2006 and our aim is to find you the right loan for your circumstances.
If you are looking at buying a property, refinancing or upgrading your home and want someone to look after the entire loan process for you, please contact us to start the process, we would be happy to help.