Hi just trying to work out what the differance is between them and if any one know a good one in Perth
Thanks
A Financial Planner helps you arrange your investing affairs to achieve your goals. Typically they recomend managed funds and the like. Rarely do they recommend property – their comission structure isn’t set up to be paid this way. Some in the past recommended tax effective agricultural projects such as Tea Tree Plantations, Olive Groves and the like. A number of people have had their tax deductions disallowed despite the planners advice.
A Mortgage Broker, like myself, simply assists a client to arrange property finance. Without going into a salespitch we find out what the clients needs are and identify suitable loan products. We then help with the paperwork and see it all through to settlement. We are often able to liaise with the lenders where things are a little out of the ordinary.
We are paid a commission by the lenders. Generally they are all pretty similar except for the more boutique style products.
If you are after a broker in Perth let me know. If a financial planner then I am afraid I don’t know any over there.
All the best,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985NODOC Loan – 65% Loan – No questions asked!
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Thanks for the E-mail Mortgagehunter there are a lot of scamming people out there just waiting to take my money without thinking about me. You saved be $1000s by showing how the industry works.
It is a pleasure to help out mate.
In this instance Mad Cat was cold called by a Mortgage Minimisation company who wanted to change lenders and charge him several thousand dollars for the privilege.
If anyone else is considering this please post or email any of the brokers here for a simple check first – Mad Cat can get exactly the same set up through his current lender for free.
All the best for your wedding mate,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985NODOC Loan – 65% Loan – No questions asked! 6.85% Rate!!
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Great work Simon,
Well done Mad Cat, This instance highlights the benefits in doing your due diligence.
Regards
Steven
Mortgage Broker[email protected]
http://www.mobilemortgagemarket.com.au
Ph:1800 820 500
VICTORIAPLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.
I made some comments about mortgage reduction people a while ago…
“There are many mortgage brokers offering mortgage reduction services and claiming they can help people repay their mortgage in half the time. The vast majority of these services are crap and they just don’t work!†say Stuart Wemyss, Chartered Accountant and director of ProSolution.“Repaying your mortgage is simply about having a low cost mortgage and sticking to a budget. Most borrowers need help with the second part – budgeting and managing their money. However, a lot of these mortgage reduction businesses do not offer any ongoing service which is essential if someone is going to change their spending patterns†says Wemyss.
“These services often recommend the use of a line of credit product in combination with using a credit card. These products can result in financial suicide for most people because it’s too easy to redraw on the home loan and overspend. Many borrowers end up with more debt than they started with because there’s no one helping them on any ongoing basis†says Wemyss.
“These mortgage reduction brokers rarely have any formal qualifications and don’t have to be licensed. Astute borrowers must ask if they should act on the advice of any unqualified person – especially with something as critical as a mortgage†Wemyss says.
“And then there are the fees! Many mortgage reduction services charge a separate fee for ‘setting up a budget’ and showing the borrower some fancy graphs. They will often recommend refinancing to another lender. They then receive commission from the new lender in the form of an upfront and ongoing payment. The existence of a [ongoing] trail commission (calculated using the outstanding loan amount) causes a conflict of interest because the quicker the borrower repays their mortgage the less commission the salesman earns†says Wemyss.
“Most borrowers are better off doing it themselves. All they need to do is source the lowest cost loan via a lender or mortgage broker. Then they need to get some budgeting help from a qualified professional and learn how to manage their money. They need to repay as much as they can as often as they can. This is sure to be a cheaper and more successful method of repaying their home loan as soon as possible†says Wemyss.
Cheers
Stu
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