Hello all I need advise!
I’ve had a meeting with a Morgage Broker to see where we stand and how much were able to borrow. It just concerned me how he kept fluttering around the same banks, even though he had over 30 on his books. My husband and I were a little concerned not so much what he was telling us but, the body language was out there, nose touching, kept fixing his tie and when he explained the pros and cons the cons were mentioned very quickly and quietly then he’d raise his voice when speaking about the pros. Are we just being paranoid or has anyone else had experiences with Morgage Brokers!!!Should you listen to one or get at least someother advise from another Broker.
Help!Ps: If anyone can advise a reputable one here in Adelaide that would be a huge bonus.
ThanksI definitaly would get a least 3 quotes as you can save al ot of money with costs from different lenders thats what i am doing at the moment. A friend of mine just paid $1300 for the banks solicitor to refinance. I asked why did he not get his own solicitor. Mine charged me $600.That was just the begining valuation starts at $0 to $500.
Just my two cents worth.
Dom[
]Hi babs,
The brokers might have over 30 lender on his book, but he will not be familiar with all the products. My experience is that they will sell you the products that they are familiar with. As they sell more of these products, they formed a closer relationships with the contact in these financial intitutes as well. So don’t be fool, you still have to ask the right questions for the right loan for you or get a few more quotes.Thanks Comdom & Australia
I had this gut feeling that he was being bias. Your right australia with him going to the lenders who he has more of a friendship with. He kept on about two major banks, but stating that one of them loses application and takes over two weeks, but his wife works for that one so she can follow the progress, the other lender is much quicker with processing the application. It just concerned me how he seemed more interested in receiving his commission quickly then helping us find the right lender and not sure if the wife gets a cut too.
I’m just about to organise another broker to see me and see what they can do! Hopefully I don’t get another bias broker!!!!Hi Babs,
I had problems with my mortgage broker also, he said he would show me three different lenders and also a lender i preferred to go with based on my requirements. Low and behold, he came up with one lender and my preferred one, but he told me my preferred lender couldn’t finance below $50K.
WHAT A LOAD OF BOLLOCKS!!
I did some research myself and rang a coupla banks and they could all suit my needs and weren’t that much different in products and flexibility.
The broker used a few choice words when I told him I no longer needed his help and would find my own loan.
Don’t think you can’t do some research yourself, normally an quick phone call will locate the banks that can do what you want.
I’m sure there are good brokers out there but after my experience I will try to do it myself.
[
]more power to the peoplemelinda
Terrible stories about brokers. These folks give us all a bad name.
I have accreditation with over 30 lenders – poss more as I use some wholesalers that are always upgrading their lists – I am sure this is the case with most of the brokers posting in here.
We do tend to use the same few banks for 80% of business. In my case it is because they are often clearly better. For example if I have a client needing to capitalise LMI above 95% I go straight to ANZ, if a client has a postcode which is difficult to get through LMI then I use another lender. For a normal basic variable with low fees then there are clearly one or two that are the cheapest.
People wanting cheap fixed rates get recommended another lender first – and they pay nearly the lowest comission in the market! If someone needs immediate approval to attend an auction then I have another preferred lender.
What am I saying? Not all brokers deserve to be tarred with the same brush. There are often reasons you don’t get given a large choice – some folks will only qualify for a few lenders and in other circumstances the solution will be obviously one lender.
If you worry that your broker is steering you into something for his own benefit then touch base with me and in a 5 min phonecall I will advise you whether it is a suitable solution given your needs. I am sure the other brokers in here would be happy to advise in this manner as well.
Remember if you use a banker you are given even less choice and if they can’t help you they tell you to find something cheaper and call them back!
Hope this helps to tell the other side of the story.
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
I agree with the Mortgage Hunter. There are some lazy brokers out there.
Make sure they compare at least 3 lenders (the comparison is good to get in writing). Ask them how they have gone about selecting the right lender. Ask them about the top 3 lenders for your situation.
They have all the information so just ask them questions and probe them a little.
If you feel they have a bias or aren’t acting in your best interest then move on.
Also make sure they disclose all their commissions (from every lender on their panel).
Cheers
Stu
I said it in anoher post and I will say it again, I have used Simon’s advice (from Mortgage Hunter) and found him very helpful and honest. He’s not in my area but we faxed a lot, used emails and his replies were always prompt.
He found us a great loan with the best rates around and I would take him up on his offer for you to ring him. You can be assured that he is honest and reliable. Actually I don’t really care what his commissions are, I hope they’re BIG, he deserves them.
Good luck, CeliviaThanks all for the advise. I’ve taken it on board.
Babs..
suggest contact mortgage hunter for advice (thats 2 views right there) [
]Also contact your local bank, they know they’re in for a fight and are pretty keen to get your business, they have in-house consulants who will come see you etc, the more $ you tie up with them the more they can offer you..AGREE wholeheatredly with the three quotes scenario… in most things you do. it gives you a bit of a clearer picture
just remember to look at the whole picture, extra repayments,exit fees etc.. compare apples with apples
Redwing
“The man that thinks at 5o as he did when he was 20 has wasted 30 years of his life”
Part of my time is spent working as a broker and I would add to the comments of others as follows :
There are several advantages of dealing through a broker rather than dealing with a bank direct some of which are detailed below. If your loan application is straightforward the broker will be able to place you with a Tier 1 lender and there will not be a broker’s fee payable by you as the bank will pay the broker out of their own pocket.
The advantages of applying through a broker are as follows :
1. There may well be a particular Tier 1 lender whose product is superior for your particular circumstances.
Dealing with a bank direct, the problem is that the finance person in that bank is hardly likely to tell you that bank ABC has a better deal than the bank which employs him, is he now ?
2. You may well find yourself in a situation where (incomewise) you don’t quite qualify for a loan with that bank under your particular cicumstances.
The finance person in that bank is likely well aware how he can make you qualify but he is hardly in a position to tell you to structure your application in a different manner.
After you have disclosed certain facts to him/her you are no longer in a position to change your story.
Against that, a broker is in a slightly different position and, after establishing your particular circumstances, he usually would make gentle suggestions to you to present a slightly different picture so that you do qualify. The above doesn’t necessarily mean that the broker would suggest that you to do something illegal.
A couple of examples ? Well you may just miss out on qualifying for a loan and the broker may well know the solution for you.
Another advantage (of dealing through a broker) is if you happen to have a default noted on your credit file. Often a simple explanation would save the day.
3. Many mainstream lenders may at times indeed take as long as two weeks to approve a loan (subject to valuation). If you are under time pressure the broker is likely to be aware of a lender whose turn around time to give approval is say 3 hours !!
4. If there is a problem with either your income or with the property you aren’t a straightforward case and the bank may refuse to lend. If you then apply to another couple of lenders and the same thing happens it will become almost impossible to get a loan elsewhere (except at exhorbitant rates).
A broker is aware of a lender’s criteria and
won’t apply to a lender unless he is 100% certain that you will qualify.It is a win/win situation to deal through a broker. In the USA about 75% to 80% of the loans are placed through brokers. In Australia the ratio is at present more like 30% (and increasing).
I would go as far as saying that to go directly to your friendly bank is in many cases, more likely than not, actually a foolish thing to do.
I do suggest however that you are completely honest with your broker right from the start and tell him the full facts beforehand rather than he finding out the warts when it is too late to save the day.
Please note that I am not talking through my pocket as most of my business isn’t derived from mum and dad’s type of loans.
Finally, yes, I am aware that there are a few bad apples amongst brokers (just as there are in the general community) so my advice is to not pay any broker’s fees (if applicable) upfront as you may be dealing with a crook. Paying a lender’s application fee and valuation fee (if applicable) is of course a different story.
Cheers,
Pisces133
G’day Babs…
You picked up on the “vibes” and good on you.
For many years I have been a Mortgage Consultant and not a broker. I charged my clients a fee greater than commission paid by Banks/lenders and rebated that commission back to the client.
I can assure you that they came out miles in front.Over a ten year period many referrals and repeat business flowed as a result of being very direct, and honest with my clients.
Guys like the one you had will, one day realise it is so easy to say it as it is, when you have product knowledge and the clients interest at heart.
Why am I telling you all this?
Because, I too have had reason to contact Simon at Mortgage Hunters and suggest you do the same.
With several hundred clients under my belt I know a good broker when I come across one.. call Simon!My good old Dad once said to me ” You can trust a guy who.. (1) has come from the Bush. (2) Has had Military experience (3) Has played Cricket
I know that Simon’s got two outa three…and my old man was right.Cheers and follow your gut feelings always.
Bill
Bill O’Mara
Real Estate,Mortgages,Share Market Strategies.
[email protected]Bill,
Re the body language mentioned.
Do you remember Dad also saying that you can tell a lot from a man by his handshake?
See you soon, Phil
]
]more power to the people
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