[?] Would you consider it unethical to utilise two MB for finding out the best deal for your investment?
Scenario: You want to buy a house and get a MB. They come back and tell you to go to Bank A and explain that this is the best deal! – The MB is currently being paid the highest premium (read commission) by this Bank and therefore encourages you to go there. Trusting their recomendation you sign up and do the fun stuff – later you find out that there is a better deal out there FOR YOU. This has recently happened to my sister!
I am about to committ myself to a loan for our first IP [party] and the REA sent his MB to talk to me. No problem there. My friend (another MB) has also been looking at finance for us and both are recomending different paths – Hmmm interesting!
Interest the same, fees are $5 different, both come with a compulsory Credit Card, blabla.
Main difference is that, if I stay with my current lender (Bank
I supposedly save on stamp duty. Is that correct?Comming back to the original question – is this considered unethical? I have told both MB from the onset, but given the result, I allmost feel like doing this every time and I find that a bit dissapointing as we are always talking about building relationships……your thoughts…
Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonBy all means shop with a few brokers but don’t apply for more than one loan.
Give me a call and I will tell you which facility I would prefer – won’t be trying to poach your loan either!
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[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.
Simon is right you could ask a dozen brokers and get a varying number of answers.
Remember the lowest interest rate in not necessarily the best deal for you. A good broker wil take into consideration you goals and aims for the future as well as you income and spending pattern.
I think what brokers get a little fed up with especially with some of the development and commercial deals i do is when you get the letter of offer out after weeks of work and the client goes back to his original Bank (who had declined him at first) and they agree after all to match the deal.
Why not post the brieft scenario on here and let us comment. Dont include personal information.
Cheers Richard
Ph: (07) 3720 1888
[email protected]
http://www.yourstatefinance.comIP funding and US property finance
our specialityRichard Taylor | Australia's leading private lender
Hi Calvin,
Shopping around is fine, but keep in mind any clown can recommend the lender with the cheapest rates. Correct structure should be paramount; the product with the lowest rates and fees means absolutely nothing and can end up being costly if it hinders your future goals.So with the above in mind, ask your broker/s why they have recommend a particular lender/product and how will it best serve your current situation and future plans, proposals containing a certain level of foresight should act as your barometer, I hope this helps. Cheers.
Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Sorry Richard I dint see your post before I posted my similar reply.
Great minds…. cheers.Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
I remember applying for aloan through a mb a few years ago,and he came up with his recommendation.I looked at what my current bank could offer,and it was going to be cheaper for me than what was recommended.So I took him to task on it,and stayed with my own bank.Not long after I read that his father’s company was releasing a credit card in conjunction with citibank,the bank he had recommended I take the loan through.Take from that what you will…So I say try 2 different brokers,but tell them what you are doing.
Tools
hi calvin@thirty4
I might be a bug in the oitment but as arule I check with two brokers one I aim with private lender and the second with a bank and which ever comes back with the loan offer first if they are similar I run with them and the brokers i work with do the same with me.
I am in a bit of a different area but there is nothing unethical about it but you must let both brokers know what you are doing and as richard says you don’t go back to your orginal bank as it doesn’t do you, the bank, or the broker any good.here to help
Cheers All,
I do like the idea of building relationships, that way I can get some better pricing and the relationship partner gets to win by repeat business! Win-win, for want of a better clishe.What about the Stamp duty issue? If I stay with the current lender, but refinance to a different product (say a proffesional pack), do I save by not having to pay the stamp duty?
Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonHi Calvin,
In WA you will be charged mortgage stamp duty on the increased loan amount only.
WA also has provision for Mortgage concession and transfer concessions that you may be entitled to depending on Gov. approval.BTW, Brokers residing outside of WA are unable to write loans in WA, but I’m happy to provide you with suggestions & help etc, Cheers.
Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi Calvin,
this is not my area of expertise but I’m always surprised when someone says they could’ve got a better deal elsewhere. how many times have you seen an item cheaper in a shop elsewhere after you just bought that item. Mortgage brokers are only human and will try to find the best deal for you but not everyone will always agree on what is the best deal. If you gave the same info to 10 different MB you wont get all of them agreeing on the same lender what you will get is good advice and what they think suits your needs best.C2
Rich in happiness and money is better than rich in money with no happiness.
Originally posted by C2:Hi Calvin,
this is not my area of expertise but I’m always surprised when someone says they could’ve got a better deal elsewhere. how many times have you seen an item cheaper in a shop elsewhere after you just bought that item. Mortgage brokers are only human and will try to find the best deal for you but not everyone will always agree on what is the best deal. If you gave the same info to 10 different MB you wont get all of them agreeing on the same lender what you will get is good advice and what they think suits your needs best.C2
Rich in happiness and money is better than rich in money with no happiness.
It’s always the way isn’t it..you buy something then see it cheaper the next day..[glum2]
or
You don’t buy it, then when you try to find one they’re all gone..[glum]
However..a 1% saving on a 5% loan is a 20% saving isn’t it?
How does the comparison rate thing work..is it similar to the Annualised Average Percentage Rate or some such thing?
What is the easiset way to compare loans at their most basic from an Investors perspective?
And how come the banks here in Australia can rort us with fees and costs when compared to the banks in places like the USA?
Are Credit Unions a better place for your savings?
Wasp
**************************************************Its not what you earn but what you do with what you earn
I supposedly save on stamp duty. Is that correct?
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