To choose a credible Finance Broker make sure you ask the following;
1. Can you demonstrate to me in easily understandable terms how to lend money to purchase property? Does the broker take the time to explain the different lending structures and the pros and cons for the strategies they have suggested to you? Can they explain the difference between “cross collateralisation” and “stand alone” strategies also called fire-walling Beware a broker who does not take the time to explain different lending structures available that will need to be tailored to your specific situation taking into account present and future goals. It is more than likely the structure will suit them by locking you in to protect their commissions.
2. Can you show me who & why to speak to in order to protect my income and assets, both new and existing in order to avoid unnecessary hardship to myself and family? When taking on debt it is very important to have safeguards in place. Has the broker you are considering engaging exercised a “duty of care” by gently yet strongly suggesting that you seek professional advice from a Financial Planner to have your personal risk insurance requirements reviewed? Do they offer a personal budgeting service?
3. Can you show me how to structure my finances in order to pay off bad debt ASAP? It is important to know the difference between good and bad debt and the strategies to implement in order to pay off bad debt ASAP. Has the broker explained in plain English the appropriate strategy in order for you to achieve this?
4. Can you assist me in building a mastermind team? Does the broker you are talking to have the networks in place in order to assist you to build a “mastermind” team of trusted and proven professionals to assist you in achieving your financial goals?
5. Do you cultivate long term professional relationship with me and provide ongoing education free of charge in an unobtrusive manner? Beware the broker who has a transactional mindset and just wants to get the deal done. Ask the broker if they provide free ongoing education in order to assist you to improve and build upon your financial literacy?
