All Topics / Finance / Using a broker

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  • Profile photo of MumarinaMumarina
    Member
    @mumarina
    Join Date: 2004
    Post Count: 6
    July 13, 2004 - 2:36 am

    Hi

    Am thinking of using a broker to arrange finance. Would like some input on the following please.

    Compared to me arranging finance directly with bank, and assuming the same bank..
    . Can a broker speed up the loan process?
    . Can a broker get me a bigger loan size?
    . Can a broker negotiate a better “deal” for a loan? I mean here things like reduced application and other fees

    I suppose another way of putting this is…..if I talk to a few brokers, and the same bank is involved each time, will I get the same outcomes on the questions above?

    THanks

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    July 13, 2004 - 3:10 am

    Mumarina

    I think the answer to your questions would be “it depends”. Generally brokers can’t really get you a better deal than the bank, but sometimes bank staff do not offer their clients standard discounts when they are available (unless you ask).

    Brokers can sometimes strucuture a loan deal to increase borrowing capacity. Bank staff could really do the same, but…

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of Stuart WemyssStuart Wemyss
    Member
    @stuart-wemyss
    Join Date: 2003
    Post Count: 598
    July 13, 2004 - 6:15 am

    . Can a broker speed up the loan process? Yes, but so can bank staff.
    . Can a broker get me a bigger loan size? No, bank staff and brokers use the same guidelines. However, brokers can use a combination of lenders to extend your capacity.
    . Can a broker negotiate a better “deal” for a loan? I mean here things like reduced application and other fees. Maybe, but this depends on your loan size.

    Generally, you should not be disadvantaged by using a GOOD broker (there is up side and no downside).

    Cheers

    Stu

    Profile photo of DerekDerek
    Member
    @derek
    Join Date: 2004
    Post Count: 3,544
    July 13, 2004 - 6:22 am

    Hi Mum,

    The key point is that a broker has access to a range of lenders and should, if they are any good, be able to extend your borrowing capacity because they are not limited by their employers rules.

    Derek
    [email protected]

    Property Investment Support Available. Ongoing and never stopping. PM welcome.

    Profile photo of Mobile MortgageMobile Mortgage
    Member
    @mobile-mortgage
    Join Date: 2003
    Post Count: 913
    July 13, 2004 - 7:23 am

    Hi Mumarina,
    Basically a good Mortgage Broker has your best interest at heart, not the Banks,

    Regards
    Steven
    Mortgage Broker

    [email protected]
    http://www.mobilemortgagemarket.com.au
    Ph:1800 820 500
    VICTORIA

    PLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.

    Profile photo of gatsbygatsby
    Member
    @gatsby
    Join Date: 2003
    Post Count: 708
    July 14, 2004 - 2:01 pm

    Hi Mumarina,
    From my experience with brokers, I’ve discovered that the broker you choose who has ‘your’ immediate and long term interests at heart can far outway things that may appear cheaper on paper. A great broker will almost certainly cost you less in the long run (and certianly anyway in the short run) both financially and strategically with your goals.
    Best of luck and shop around.
    Regards,
    Gatsby!

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