what makes a good broker?

As well as the ones mentioned, you should add:

1.  Must be good communicators.  They must be able to explain things clearly to non-finance people.  Need to return phone calls, email, text messages prompty. Need to be contactable easily. 

2.  Must be up-to-date with all information.

3.  Must have at least one investment property themselves to that they can empathise with investors and owner occupiers.

4. Must be properly mentored by a successful mortgage broker.

5. Must be able to think outside the square. ie should be able to handle difficult and complex cases.

6. Should be tertiary educated (degree or diploma) not just members of MFAA or FBAA.  I've already mentioned in another post that I don't regard Certificate 4 as being sufficient.

I agree that Cert IV in Financial Services is weak, and being a member of the MFAA or FBAA itself means little, it is simply required by some lenders so many brokers simply join rather than argue the need to join.  Brokers just do it rather than argue and my own view is either body do very little.  FBAA are old hat and probably wont be around in a few years, MFAA are the only competition in terms of an industry professional body and seem to side with lenders more than represent brokers at times.  This might seem like a whinge about them but they in real terms mean nothing when it comes to selecting a broker.  I know good brokers that are members of neither body.
Having owned or currently owning an investment property is a statement used by some to try to cut out those that dont, It doesnt in real terms mean a lot.  A good point I took from a Property Investment author about being educated in every area of property investment rather than purely trusting your 'advisors' is true, might be a heap more work, but is true.  Doesnt mean you dont use advisors but you should understand what decisions they are making (accountants, brokers, planners, developers, project managers, solicitors blah blah)..
Experience does count, but how do you go check up on what someone tells you?
Access to 40 lenders means little, brokers tend to stick to the main ones that are able to assist in a majority of cases, so number of accreditations means little, CBA, ANZ, Homeside, ABL, ING, (in the past RAMS), Suncorp, Macquarie, and Bankwest should cover it outside a couple of mortgage managers most people havent heard of until they need them.
Someone who charges you extra on top of what lenders pay is probably seeking some money in case you dont go through with them, I wonder why they would need to do this?
Basically, you should meet with the broker, and ask them the usual suggested questions which will be easy to answer for most brokers to answer.  It is still an industry with minimal barriers to entry, so you will see hacks, and overnighters come and go.
You can only go with someone who a trusted friend or family members recommends. That is the main point, go on someone who gives you a recommendation, and why they make that recommendation.

And yes you may still get it wrong so good luck.  If you get it wrong however, you can do worse in most other areas of property investment, such as wrong location, bad tenants, just bad luck, bad economic conditions, mistakes with cash flows on a development, etc.  Sorry to send a negative message, I'd rather say that follow trusted friends and family, follow your instinct or vibes and do your homework.

I look for a broker who:

* understands the importance of finding the right lender for MY circumstances, not just the one with the lowest interest rate. (Brokers – probably reflecting the general population – seem to be obsessed with interest rate, when it's just not that important to me.)

* understands structures and how that impacts on the way finances are arranged.

* is familiar with and uses innovative, non-bank lenders, and maintains a watch on new products and lenders entering the market.

* operates predominantly in the sector I'm purchasing in, because different lenders specialise in different sectors. (I think it's nearly impossible for an individual to be as familiar as I want them to be with all market sectors. I group finance into 3 broad divisions and I have a broker for each: commercial, residential, development.)

Just in case anybody's interested, my priorities for a loan are:

1) max LVR,

2) speed of approval/settlement with minimum bureaucracy,

3) flexibility/transportability eg minimal penalties for increasing borrowings when property value increases, reducing interest rate if LVR drops, paying out, etc.

Warmest regards, Tracey in Brisbane

Interesting thread here. might add my 23cents worth. (in no particular order)
1) Everyone has to start somewhere, so experience, while important, is not the b all and end all. Unfortunately many brokers are ex bank staff, with a very limted overview of what actually goes on in the industry, having only ever really known one lenders viewpoint and policies. also, in some areas, many people are only buying there first or second house, and as an owner ocupied rather than investment, so many brokers (and lenders across the board) have very little opportunity to deal with clients having multiple properties.
2) Further to the above, along with experience, passion and honesty (integrity) are more important i believe. I have met some brokers that spend more time telling you about ther many years of experience and property exploits to the degree that it is hard to get a word in edge ways about your own needs – and when doing so you 'must' do things 'their way' as it is the 'best'.
3) Comments on the CERT IV FInancial Services (Finance and Mortgage Broking) I can relate to…….but from a different perspective. When I did mine, through a Sydney College, I spent hours upon hours of time completing it, doing every assignment there was, being thorough, and in all fairness it probably took me a couple of months in after hours and some weekends  to do. (Distinction gradings all through though ) AND I have indeed seen others having completed a 'Cert4' in a couple of days in addition to some basic lender training – which makes me a bit cranky, as I felt it 'cheapened' all the time and effort I put into mine.  Then again, on the other side of the coin, I have just done almost half (my Diploma in Financial Planning in two days! (not that I plan to proceed any further with it at this point) so there are definately some shortcuts in so many courses I think – and that is probably needs more regulation I believe……
 
A good broker should be a quick learner,make you feel comforable talking with them, ask you plenty of questions and show enough humiltiy to ask someone else with more experience (real time/life, not just years) if they are not sure of something.

There – hopefully that will add to the above, and assist when choosing (if you decide to use one) a broker.

No lol

Hi Pirate,

I think you need to have some practical questions to ask any broker/financier.

eg Do they have their own Company, explain company tax rules ? How long has the co. been running? What formal credentials do they have in the Finance Industry?

Also, get them to explain to you what the differences/weaknesses/strengths are for setting up Trusts/Companies or buying/selling in your own name. Whilst they are not accountants, they are advising on some crucial money matters and they should be able to give informative answers with REAL figures based on your situation.

I guess what I a trying to say is: Don't take vague generalities for answers. That is Sales talk, not brokering. You need to have specific, real numbers to discuss with them and then decide based on the real numbers they give back to you how you should structure your loans.

At the end of it, you may decide to do it all yourself with one of the Banks etc anyhow. A good broker will give you scenarios that you will not have thought about, but so should a good accountant who understands investing. I have used brokers in the past and at present deal directly with a Bank. Why? Because I have found this guy buried inside a bank that, for me, is the best informed lender I have come across, ever. He is accountant/broker (sort of ) /developer all rolled in to one. He comes up with great ideas on financing over lunch or coffee.
Just go out there and start meeting with some of them. You will quickly suss out who knows their stuff and who is swinging the lead………
And don't forget, if a broker/bank recommends something, then always pass it by your accountant and perhaps solicitor. They again should be part of your team to give you extra guidance/warnings. Work them as a team, rather than disjointed individuals. It will prove very valuable.
Cheers,
JB