Forum Replies Created
Hi HousesOnly,
Not sure where you found $20,000 commission in my reply on portion of loan, it’s no where near 4%!! If I do a loan for $200,000 I can really only expect about $1,300 up front commission, and even on I/O for the next three years that’s only another $400-ish per year. The average loan length is about four years because people sell, refinance out etc etc. Even if the loan were paid out over 30 years, then the trail diminishes while inflation, cost of living etc increases and in today’s dollars I think it’d be closer to $4-$5K than $20K, and I believe that this is good value for the expertise & service clients get and it is comparable to what the banks would spend internally maintaining branch offices, staff & advertising to get you to walk through the door with a $200,000 loan request.
Plus a good broker will save you much much more than that getting you into the best deal & sructure than a lender with a limited product range may be able to do.
Hope this helps allay your concerns. We’re not that bad, honest!!
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MelKeggles,
If you are in Brisbane I know a good lawyer who can help you with this style of contract – I plan to use him myself later this month.
If you’re interested drop me a line on [email protected].
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MelThis is a great thread!
I have to confess that my life pre-mortgage broker was as a Process & Environmental Engineer with Orica (dulux, selleys etc – I was in pesticides), went to UQ – tops Uni, and I KNOW the Lions will win this year (again) because they simply outclass everyone else!! Carlton who?
Home Loan Connexion’s office is next to the mighty Justin Leppitch’s house – took it as a sign that was the best firm to join! [
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MelI’m baaaack!!
Thanks for the good wrap Richmond – Alex I hope you are getting somewhere!! [
]I have had two days computer free acquiring blisters & a tan in the garden trying to finish our reno’s ([
]) but I can see that the great news & ideas on the forum is surging ahead! []To add to the family of happy brokers & property investors peppering the site with good info my email is [email protected], mobile 0438 548 235 – ie a colleague of Gary’s.
Now back to the posts …
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MelMy hobbies:
– Italian man
– Italian food
– All other food ….. [^]
– Lazy Sunday’s reading the paper cover to cover
– Playing with my two pug dog puppies
– All things investing and financial freedom orientated
– Playing the musak machine (getting into EBTG again at the moment)
– People watching
– Playing lots of sports: beach volleyball, indoor mixed netball, swimming in triathlons, tennis, walks in the part (see dogs..!)
– Watching lots of sports: GO THE LIONS
– Doing new things: drawing class, cooking class, learning Mandarin, learning italian
– Travelling everywhere – Papua New Guinea (where I grew up), Australia, South America, Western Europe, Asia, US etc (ie the deposits for all the houses I didn’t buy in my 20’s!!)
– Gardening and renovating
– Having fun with family and friends
– talking for hours to interesting people … obviously …think that’s enough for now []Mel
Arty, your postcode just makes the GEMICO list, category F! Lenders using this mortgage insurer should lend you up to 95% on houses for loans up to $300K in this postcode, land is not so clear cut – because I don’t know that part of Vic, I recommend talking to a local broker eg Stuart at Prosolution, or try CBA directly. [
]Cheers,
Mel[
] Sorry forgot to answer the rest of the question – financial services companies often do offer to split brokering commission as they get bigger commissions from lobbing your funds into managed funds and the like, so it’s probably still viable for them. A lot of brokers also share commission with referrers that they get regular business from eg real estate agents, financial planners and the like, but rarely up to 50% from what I’ve seen. If they don’t get regular business from these sources you end up working for peanut pay so it’s not that sustainable.Other brokers’ views?
Mel
Hi!
How’s your day ?!? Just caught this trying to tear myself out of this addictive forum …. [
]Basically every broker is on a different wicket, depending on the company they work for, whether they are on retainer (salary) or commission only, franchise arrangements etc so I can only speak for my group. We operate as commission only and get an upfront commission of between 0.6 to 0.8% of normal loans, and roughly half that percentage of the outstanding balance each year as a trail commission until the loan is paid out, which happens roughly every four years. Non-conforming lenders pay a fair bit higher, but they are only a small part of your business, especially with the major lenders offering such great low doc loans now.
It’s great fun but I believe it’s not a walk in the park by any stretch – you have to be writing over $1M in loans per month every month for a decent wage and it’s really reward for effort based – ie it’s easy to starve if you’re not getting new business consistently, might you the feeling of satisfaction when you get someone into their dream house with a great deal is pretty infectious …. makes getting out of bed very easy!! [
]Remember, all brokers are different, but hope this gives a good guide.
Ciao,
MelG[
][]D W[]RK JUNI[8D]R[^]
MelCONGRATULATIONS !!! [
] [^] []Hope it works out well for you, sounds like you have a plan to make it happen!
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MelArty what’s the postcode?
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MelGot an invite yesterday to a “Property & Investing Expo” on September 12th to 14th being run by none other than Mr Noel Whittaker. It’s about 90% financial planners, 10% property investors including Gordan Green but they do say they have over 100 exhibitions in a Franchising Expo running at the same time, so will might go along anyway just to see what it’s all about.
Entry is $10 and brochure says more details on http://www.propertyexpo.com.au
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MelOh Sooshie, want an unhappy mess [
]What is his income stream? Is there some way that a lender would be happy to take first dibs at his income, pre-banking in his account, to take over the whole fiasco?
Only thing I can think of so far – will ask around though.
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MelHi Msrty,
Normally you don’t need a solicitor involved, just to fill out the discharge forms with the lender.
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MelWay to go Harold!! Good luck Aaron, hope the kids forgave you … ?!
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MelBroker introduced loans account for about 30% of the market, expected to rise to about 70% as consumers realise what an advantage it gives them for shopping around and making the application process much less painful, so yep it’s a case of ‘the channel’s there so we better use it!’.
It’s also a very fast way for banks to get to a lot wider audience with special deals than normal ads because brokers will always try to put the latest best options forward, and if they are talking to 30% of the active borrower market every day, that’s effective (and free!) advertising, ie I think it works both ways.
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MelHi Aaron,
Do you own your own home? If yes, have you spoken to a broker about how to leverage the equity in that?
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MelAgree it does sound promising but if you are lending to buy it can I suggest a couple of things:
1. Make sure the apartment size is greater than 45 m2 living area (ie without including balcony or carport)
2. Try to ensure that it’s a pooled rental, equal pay arrangement, and that the room rental rates and manager’s fees don’t seem exhorbinant
3. See an independent broker as well as any financier the developer/marketers direct you to, and preferably BEFORE you sign anything or hand over a deposit.Reason being – serviced apartments anything more than 6 months till completion are v v hard to convince normal lenders to touch, especially if income is per room only, and you may be caught in a non-conformer paying about 2% higher than the crowd just to get into the deal, and if the property value ‘slips’ after they’re built it’s very hard to finance out of these deals.
It’s a beautiful area, 50% occupancy should be more than achievable and you may be on a huge winner!
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Mel
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]) but I can see that the great news & ideas on the forum is surging ahead! [
] Sorry forgot to answer the rest of the question – financial services companies often do offer to split brokering commission as they get bigger commissions from lobbing your funds into managed funds and the like, so it’s probably still viable for them. A lot of brokers also share commission with referrers that they get regular business from eg real estate agents, financial planners and the like, but rarely up to 50% from what I’ve seen. If they don’t get regular business from these sources you end up working for peanut pay so it’s not that sustainable.
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