How do mortgage brokers and comparison sites (like iSelect/Choosi/CompareTheMarket/Finder/etc) get access to the list and details of mortgages for each bank they work with? For example, Mortgage Choice, Aussie, etc.
They punch your details into their app and see a list of mortgages available from each bank including interest rate, features, eligibility, etc.
Where do these lists of available mortgages come from? Do the banks have APIs you can get access to, etc?
Thanks for your help.
Our aggregators provide software – that software is updated daily with current bank products, ect.
Having said that – a good broker won’t usually rely on the software for coming up with a product recommendation.
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]
As Jamie said a decent broker knows the market well enough and has contact with his BDM to update him on what is available.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Its all manually entered into the backend. API’s are way too advanced for the industry but its not too far off. The problem is often the lenders don’t have an API themselves to feed the data automatically into vendor (aggregator) softwares.
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
Thank you for all the information everyone above.
I thought I just share something with everyone here.
A couple of months ago, I had a chat with a friend of mine who works as a lending manager in one of the lending institutions (not big 4 bank). I always fascinated on how big development and business loan works.He told me the bank is happy to lending out the money to good deal(s).
The problem is how to present a deal as a good deal to the bank for them to lend out the money.
He told me building up a good relationship with a good lending manager in the bank or a good mortgage broker is a key to be successful term of financing a deal. Because what really happen is a good broker or lending manager always knows what’s the updated rate/news from lending institution(s) and they are able to present a client’s deal as a “good deal” to lending institutions(s) to lend out the money.Hi Taylor
Hate to say he was referring to Commercial lending as your relationship with a personal banker / lending manager has no bearing on a residential deal whatsoever.
Thanks to the introduction of NCCP if the deal does not clearly show your ability to service the deal the loan will NOT be approved irrespective of how well you present the deal.
In most cases loans are credit scored without human intervention especially under / over a particular lvr.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
I think Richard you are right, I did recall him told me he is in the commercial lending area.
This sparks another interest questions.
What’s the difference between residential lending and commercial lending ?
How does a bank classify the a kind of lending is belong to commercial or residential ?Say for example, if I purchase a 5 bedroom house and intending to do a renovation which extend the house into another 5 bedrooms. Total is 10 bedroom house. They I rent each room out separately to individual person. I run it as a hostel/short term accommodation property.
Questions
Will the bank see this as a commercial lending or residential lending ?
In term of valuation, will it be better to value the property under commercial lending term rather residential lending term ?
Is the commercial lending valuation depend on the yield or is also comparison in this case ??Sorry to ask to many questions…
Say for example, if I purchase a 5 bedroom house and intending to do a renovation which extend the house into another 5 bedrooms. Total is 10 bedroom house. They I rent each room out separately to individual person. I run it as a hostel/short term accommodation property.
I work as a lending specialist for a ‘Big 4’ bank and getting finance approval on something like this is extremely difficult. From what you are saying, it sounds like a ‘boarding house’ and not a hostel..
Buying a standard residential dwelling, and then converting it is a different story though.
Boarding house financing is possible albeit at a lower lvr than a standard residential / commercial
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
You are correct, However their are other Lenders that will consider the deal depending on the circumstances and the security.
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
it seems that some lending decisions are very subjective?
objectively, why lend if the borrower cannot service the loan, regardless whether it is residential, commercial, or industrial property?
Yes, some are assessed on a case by case basis. Particularly when loan is outside of normal guidelines.
If the borrower cannot service the loan it will not be approved – NCCP / responsible lending and all that jazz for resi lending.
Commercial is different where it doesn’t fall under NCCP but why would a bank lend money when the probability of default is high.
Kinnon Bell | Kinetic Funding
http://www.kineticfunding.com.au
Email Me | Phone MeMortgage & Personal Loan Broker based in Cairns and Melbourne but servicing clients Australia wide.
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