A bit of a challenge
So as to be better inform all investors on this forum what is the current best case scenario, I put the question to all brokers and finance people on the forum.
Accepting that there is much more than the % rate involved in the process around planning and follow up, that fees encourage ongoing oversight etc etc and the fact that you are looking for future work from the client and personal recommendation.
Let us know if its a PPOR.and the upfront fees on say a $350,000 loan you tell us the terms to get the best rate.
- What is the best final rate to the borrower you have been able to offer a client in the last six months on a standard house purchase in Australia.
or
2. What Rate do you believe you could provide a buyer with the best credit circumstances, finance this Month for same purchase.
PS. I realise most of you are fishing in the same Pond
Are you for real?
How long is your piece of string.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Terryw wrote:Are you for real? How long is your piece of string.Agreed. If you're after the lowest rate possible head to google and take a loan out with an online cheapie. Hopefully they remain in business during your loan term and don't jack up rates when times get tough.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Ozman, I'll attempt to answer your question. I am currently using Jamie from Pass go home loan who has posted above. (All 3 from above are excellent but you can only use one). It sounds to me you are shopping on price. If that's the case you will get what you pay for. When i first contacted Jamie the interest rate was the least of my concerns. I was looking for someone that not only knows what they are talking about but will steer me in the right direction and not in another direction that will profit them, and also somebody prompt. The fact that my broker emails me on a Sunday morning sums it up. A good broker means you don't need to stress day to day as you know things are being taking care of the right way.
No not shopping at all, have an executive style 5 /3/ 4 settling this week close to Bris CBD. I have done a lot of phone and email work but only seen photos and commissioned reports on it as I am currently in NQ. Purchased on prearranged finance / line of credit.
There have been a number of claims made that brokers will always get a better rate than a borrower will get from a finance provider on their own application.
Simply putting it out there to both Brokers and Finance providers on this forum to see if anyone is willing to put a figure up for a best case application. You can write the terms to achieve such a good rate, but keep deposit and income around average rates you deal with every day for start out PPOR investors.
The understanding what you need to get such a figure, I think, will help new potential investors gain a better understanding of the factors they need to pay attention to.in their deliberations.
Finance has never been cheaper, so I realise there is a smaller margin to play with but then finance providers never like giving anything away.
Not my cup of tea
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I am with Terry don't mind if i give it a miss.
Most of my clients stay with me and dont ship when the next lender / brokers offers them 5 bps less they are paying.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Thanks for the reply Joe,
Jamie certainly looks like he has good client satisfaction on the forum. If he meets all your needs and if emails on a Sunday morning is the extra bit it takes for you, that's a bonus! Then again as you say, you only get what you pay for!
With money so cheap at the moment that interest rate of loans is the least of their concern, and the possibility of a real estate bubble in Australia, I just hope investors have a fall back position factored in.
Qlds007 wrote:Agree what a stupid question and one any decent broker would answer.Cheers
Yours in Finance
Looks like you may have had a bit of a freudian slip there — look forward to any decent broker providing an answer.
Many years ago I was told by a very good professional "I would rather answer a thousand seemingly stupid questions, than have to deal with the results one stupid mistake that could have been avoided. by asking"
I hope you don't treat your clients and their questions with the same disdain.
I do see in your next post that it appears your rate is around 5 Basis Points above some other brokers. Certainly not a high figure for premium service or a margin that would temp satisfied clients to swap brokers.
Agree what a stupid question and one any decent broker would not answer.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Ozman,
If all you are interested in is the interest rate on your loan UBank are probably the cheapest at 4.62%, you have to go direct with them, it will be very much a no frills product and i'm not sure if there are any upfront fees. The lowest carded rate that I know i can write, from the top of my head, is Mac Bank 4.84%, there are some bells and whistles available with this product and we do use it fairly often. Most of the majors will price match and if the loan is large and low LVR you would probably be able to beat this rate. The problem with rate shopping is that the lowest rate might not be the type of loan that suits your circumstances the best and having a sub optimum loan structure can very easily cost you a lot more money than can be made up by a slightly discounted interest rate.
Gidday Ozman,
As mentioned already by Joe, the brokers that have commented above are all awesome at what they do, and their clients become wealthier due to having dealt with them. This is because they don't just get you a loan, they have the whole strategy in mind and are thinking several steps ahead, working out how to make all the factors at play get you closer to your retirement goals. You won't get that chain of thought from just any broker, and you definitely won't get it from going direct to the bank. If your objective is to get wealthier, surround yourself with people that can help you get there. Steer well clear of trying to save the odd dollar by asking seriously clever and seriously wealthy people to give you free information. This sort of decision can ultimately turn out to be an extremely expensive decision.
Anyone can race out and buy "a house" or grab "a loan". But the results will be incredibly different depending on the approach, the particular house purchased, the type of loan, and the manner of lending. Massively different. So different in fact that one person could buy one house and find themselves unable to lend money again, and another person is able to just keep buying.
Leverage the smart people. It's the best advice you can get.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
I guess it comes down to what you want. If you want the cheapest rate google it or Talk to a mortgage broker, it will be provided. As long as you know what you want. But remember the cheapest rate might not be the best solution for you.
DaOne | Oras Finance - Your Local Mortgage Broker
http://www.ihomeloans.net.au/
Email MeHelp you make your dreams come true: https://www.youtube.com/watch?v=sB3KpKX4UsI
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