Hi all
Well it is my understanding there are two types of brokers.
Those that get paid by the Individual person or persons that wants there services to find and structure the best loans etc.
Then there are those that get paid by the Financial institutions for bringing business to them.
So who are the Brokers really representing. When they encourage refinancing etc.
When i look at some of the upfront commissions paid to brokers and trailers by some financial institutions its amazing. I could have gone through the front door and got the same deal.
I have not at this stage seen that mortgage brokers i have had some communication with can pull anything special that is worth the money being paid to them by the financial institutions and not really getting me anything better.When an agent sells a house who pays them the commission. Sometimes buyers seem to think the agent is representing them.
Be interested with your thoughts.
regards
alf>When i look at some of the upfront commissions paid to brokers and trailers by some financial institutions its amazing. I could have gone through the front door and got the same deal.
Perhaps, but my broker keeps up to date with a whole range of products, and lets me know if the banks are pumping out more funds or starting to restrict funds (the NAB has been doing the former, thats why it has had such a bad run). Whenever I’ve talked to a bank I’ve never herd them say “where restricting lending”. A good broker can offer a hell of alot more than any bank can (inc. knowing whats going on with your file!).
>I have not at this stage seen that mortgage brokers i have had some communication with can pull anything special that is worth the money being paid to them by the financial institutions and not really getting me anything better.
Well my guess is you haven’t had a good mortgage broker…
Thanks to my mortgage broker I have presented my finaces in the best light without me having to do any work whatsoever. As well as hints and tips on how best to do certain “creative” things (all legal…).In the end a broker does all the work and I get all the result, and I would still use one even if I had to pay. It’s just way easier.
Rgds.
Lucifer_auHi lucifer
Thanks for your reply i was curious on some peoples thoughts.
From looking at a multitude of products and recommending this or that one i can understand that a broker has alot more of a eagles view so to speak.
I would say that if one was looking for fairness it would be that the Broker got paid the same Commission and trailer from whichever institution he/she recommended that way a bias would appear to be less likely.
cheers
alfDo you really believe that a bank is going to give you their cheapest product? The staff are also on commission but they call it a ‘bonus’. If I had a dollar for the amount of loans I have seen at higher rates because someone went direct to one lender instead of using a broker or looking around, I would be rich!
Robert Bou-Hamdan
Mortgage Adviser
http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter – Click Here
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty LtdAlf
THE THIRD TYPE OF BROKER
the ones who freely answer all of your questions and provide willingly their experiences, their knowledge and training, their ‘street smarts’.
common problems like STRUCTURING OF LOANS, GETTING THE BEST LVR’S, VALUATIONS and CROSS COLLATERALISATION of properties by certain banks have been discussed on this forum AND other forums
all of these problems and many many more could have been avoided if clients were initially ‘clued’ up – unfortuanately a lot of people are not – brokers should be – its what they do 7 days a week
cheers
brahms
mortgage broker
[email protected]
brisbaneSeems a bit cynical Alf?
What about the broker who, even though gets paid different comissions, disregards that as a factor?
The broker who brings the experience of 100’s of deals to the table?
The broker who takes away the feeling of being overwhelmed to the first home buyer?
The broker who can hold a persons hand and make it all smooth for them?
The broker who saves the client a heap of time by doing a lot of the work for them?
The broker who recommends a building inspection and saves his clients thousands but kills the deal for himself?
The broker who sees through a marketing scam and advises an inexperienced client accordingly?
The broker who works to educate a client for months but that client never ends up buying?
What about the broker who structures a clients loans a little differently and saves him $16 000 in LMI?
Alf, I think you are being a little black and white in a very colourful world. This old chestnut of brokers being paid more by different lenders is just not an issue to all the brokers I know. 0.1% comission difference just wouldn’t influence their thinking.
Of course you can get the same deal – if you knew about it. Did you know that banks never offered Pro packages until the brokers started selling them? You had to know they existed and ask for them specifically
I would encourage you to work on your own loans and I would be very happy to answer any questions you may have along the way – as would any of the resident brokers.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Fully Accredited With Derivex PTY LTD and IFHL PTY LTD
***Ask about our Interest Free Home Loan***
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Simon,
Please tell the story that brought tears to your eyes. It is one of the best I have heard. I am CERTAIN that no lender would have dealt with that client directly!!!
Don’t be embarrassed now…
Robert Bou-Hamdan
Mortgage Adviser
http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter – Click Here
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty LtdPull your head in Rob[biggrin]
I am not one to blow my own trumpet….
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Fully Accredited With Derivex PTY LTD and IFHL PTY LTD
***Ask about our Interest Free Home Loan***
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Well I am not going to ‘blow’ anything!!![baaa]
I just want to see your “itchy eye” again!!! [biggrin]
Spit it out. It is a great story!
Robert Bou-Hamdan
Mortgage Adviser
http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter – Click Here
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty LtdHi all
Like all areas of life there is good and not so good. I am sure a good broker would have to have some value.
Most of the brokers which frequent this forum and perhaps others are in a class of there own. Giving there honest opinion from experience without the self interest tag. I very much much respect that and in no way was taking a swipe at anyone here.
Cyncial? no but it is a perception that a person that has there own interests at heart would lean to the better paying commissions and recommend accordingly.
I know there are companies now that receive the same commission irrespective of the lender they recommend. They wouldn’t do this for no reason i wouldn’t think.
Again the forum brokers are in a class of there own.
Cheers
AlfI think Simon said it all very well.
>>When i look at some of the upfront commissions paid to brokers and trailers by some financial institutions its amazing. I could have gone through the front door and got the same deal.<<
It’s not coming from your pocket so why thinking about it?? going through a broker is BIG FRONT door..
>>I have not at this stage seen that mortgage brokers i have had some communication with can pull anything special that is worth the money being paid to them by the financial institutions and not really getting me anything better.<<
May be you never met good broker… the amound of work has to been done behind the scene you won’t even realize..
How can you say bank people can give you right advice when they have only one bank product? Do they give you comparison sheet comparing couple of bank products?
Cheers
PropertyGuRu [sultan]
Mortgage Consultant
[email protected]
MSN ID: amitash, Yahoo Id: bornguruNZ loan pre approval from OZ in 48 hours,Low Doc from 6.85%,Investment loan 95%+
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