A good broker will not only simplify the process of securing a loan but will also save you a lot of money and headaches – which is especially true if you’re thinking about buying property internationally.
When you’re dealing with different countries’ rules and loan structures, you need the broker to play a much more critical role in helping you find the best deal than you would if you were buying locally since you’re, presumably, a lot less experienced in foreign markets.
1. Assess Their Experience and Expertise
Brokers that actually have experience in your target market – whether it’s domestic or international – generally make all the difference. Specifically for when you’re buying property in another country, though, you need them to have a track record with handling international mortgages.
For instance, buying a home in Italy while you’re currently living in Portugal is a completely different ballgame than if you just purchased locally. So, having a broker who has got real experience in handling these kinds of deals is going to let you handle tricky issues like local regulations and tax laws far more effectively.
2. Check Broker Accreditation and Licences
Don’t assume that your broker is qualified just because they sound confident and articulate – make sure they’re licensed and accredited. Depending on where you’re buying, this means different things:
- In the UK, brokers need to be registered by the Financial Conduct Authority (FCA)
- In Australia, they should be accredited with the Australian Securities and Investments Commission (ASIC)
- In the US, they need state-specific licences
If your deal involves multiple different countries, you need to look for a broker who has got the necessary credentials for each region that you’re interested in buying in. This isn’t just about paperwork, either – it ensures that the broker is following the laws and regulations in any of those countries and can actually be held accountable if anything were to go wrong. So, do your homework and verify their qualifications before you go any further with them.
3. Understand the Range of Lenders They Work With
Not all brokers have access to the same pool of lenders – some work with just a few banks, while others usually have a larger network. The more lenders your broker has connections with, the more options you’ll have at your disposal (and more options mean better loan terms and competitive interest rates!).
Ask them about how many lenders they work with and whether they focus on big banks, smaller institutions, or even both. This is even more important if you’re looking for an international mortgage since brokers with a broad network will give you a lot more flexibility – subsequently giving you a better chance of locking in more favourable terms.
4. Ask About Fees and Commission Structures
You don’t want any kind of surprise when it comes to costs, so get clear on how your broker actually makes money. Some of them will charge you directly, while others might get paid by the lender through commissions. Ask upfront about fees so you know exactly what you’re getting into.
Be careful at this stage, though; sometimes, a broker might push certain loans on you because they’ll get a bigger commission, so always ask them to explain their compensation structure. If it turns out that there’s a conflict of interest, you definitely want to know about this before you make any major decisions.
5. Evaluate Their Communication and Support
A good broker should always be easy to reach – whether it’s by phone or visiting in person – and willing to guide you through the entire process. How they communicate with you is a big deal, so from the first interaction you have, notice how fast they respond and how clearly they explain certain things.
You want someone who is not going to leave you hanging when you have questions or concerns – this is especially true if you’re buying internationally, since time zones and differing laws can add a layer of complexity. So, having a broker who’s responsive and supportive is going to save you a lot of stress.
6. Look for Specialisation in Cross-Border Mortgages
If you’re buying property internationally, you can’t settle for a broker who only understands local markets. Cross-border deals come with a different set of challenges than local markets, whether it’s managing foreign income or dealing with differing tax systems and currency fluctuations. You need someone who actually specialises in international mortgages and knows how to navigate these kinds of issues.
Moreover, a good international broker is likely to already know some lenders who are willing to work with foreign buyers – which is crucial since not all lenders are comfortable with cross-border clients. Ultimately, a broker with this kind of expertise is going to save you time and help you avoid any expensive pitfalls, so not only will you get the best deals, but you’ll stay compliant with all the local regulations, too.
7. Read Reviews and Seek Recommendations
Online reviews and personal referrals are usually gold when you are picking a broker, so make sure you are taking the time to read what their past clients have to say – it helps if you use a platform like Google Reviews or Trustpilot for this. Some of the good signs that you want to look out for include things like:
- Great communication skills
- Highly responsive
- Able to secure good loans
- If the past clients’ felt supported and the broker explained things clearly
At the same time, though, check if there are any recurring complaints – from hidden fees to poor customer service once the deal is closed. Don’t hesitate to ask your friends, family, or colleagues for any individual recommendations, too, since it’s usually a strong sign you’ll be in good hands if someone you trust has had a good experience with that broker.
If possible, seek out people who’ve dealt with similar loans in the past, especially international ones, since that kind of experience is generally going to give you a better sense of what to expect from them.
Conclusion
Choosing the right mortgage broker isn’t just about finding someone who is going to help you out with paperwork; it’s about finding a partner who will actually work to get you the best possible deal and generally make the lending process smooth.
Whether you’re thinking about buying property locally or internationally, just make sure you keep some of these factors in mind:
- Experience
- Accreditation
- Lender network
- Fee structure
- Communication
- Cross-border expertise
- Reputation
By doing your due diligence and picking a broker who genuinely fits all of these boxes, you will be able to set yourself up for a far better mortgage experience – and potentially save yourself a lot of time, money, and stress in the long run.
Choosing the right broker can make all the difference in securing your dream property. With Upscore’s Finance Passport, we connect you with expert brokers across borders to make your international mortgage journey seamless. Get started today and explore your options!