Will Mortgage Brokers be needed in 2013?

It all depends upon the service that you're after.

Organisations and sites like this have been around for years and there is nothing new. 

Doesn't worry me in the world and i am sure most other Brokers would be in the same position.

Do they tell you how to structure your loan or where to go to reduce your LMI cost etc. Course they don't.

You can buy a book and do your own conveyancing and that saves you a few dollars but how many purchasers would be foolish 

to do so.

Professional investors understand that interest rate is fairly immaterial over the term of the loan and most clients are looking for more than the lowest rate.

If this is the case then you would not use websites like this as some lenders that do not pay commission offer lower rates than the high street Banks already.

You have to ask yourself why did CBA / Anz etc divest themselves of their online lending models.

Maybe it was because they just didn't work.

Exactly the same reason why all Banks closed every Branch in every small town at the start of the decade and now are

re-opening them all back up again. 

Cheers

Yours in Finance

There's nothing new with this approach.

It's been around for years – refund home loans was probably one of the more well known users of this model….and look what happened there.

I'd question the quality of any brokerage that needs to rebate clients in order to attract business.

As for the end of mortgage brokers in 2013….that's not going to happen and the decent brokers won't be going out of business any time soon.

Cheers

Jamie

Personally, I don't think you can in any way substitute the quality of service you get when you manage to find a MB you can establish a relationship with and trust implicitly.

Not only is a great MB there to structure your finances correctly but also supports and helps you to achieve your goals. The relationship should be personal because it will most likely develop over many years. 

When you find an MB that answers your emails at stupid o'clock in the morning from anywhere in the world and actually listens to your crazy ideas, well…that's gold!

Cash back schemes are just another marketing ploy…pffft. Why settle for a Skoda when you can drive the Aston Martin 

Jack 

Terry totally agree.

I have a couple of deals i have done for forum members where before i left for the UK we had the loans approved, loan documents issued and then 2 days before Settlement their existing Bank said we will cut the rate by 10 bps if you stay with us after all.

They have decided not to proceed after all.

As it happens post the December rate reduction they would have been better of in both interest rate and loan structure had they refinanced after all as the lender we recommend cut the rate even further than their existing lender but it is not only about rate as i say so often.

Cheers

Yours in Finance

No gets better Terry they had the 2 properties crossed but they told him that even though he had 110% borrowings the loans wouldn't be crossed going forward.

Must be magic.

Cheers

Yours in Finance

Hi Dan

I'm not a mortgage broker but I'm sure you'll get what you pay for    Not putting a long term finance plan together with one of the terrific brokers here is, I think, pretty short sited as, I'm sure you don't want what you're doing now to hinder your future plans.

Cheers,  Paul

Hi Paul

Yes almost a matter of getting what you dont pay for lol

Cheers

Yours in Finance

I also wonder if the companies that are using the rebate type models are selective with the clients they take on. I couldn't see them going to the effort of dealing with complex deals.

Cheers

Jamie