Im thinking of getting a loan for $350,000 for an investment property. I have been told that the banks are very competitive at the moment and are offering .7% off some of their MAV packages. Can someone please tell me what is a good interest rate these days? Are they flexible on the rates? Can I get more than .7% off?
Am I better off negotating direct with the bank or using a broker?A bank can only offer you what they have, a mortgage broker can offer you what everyone has.
we always use a broker.
We buy properties in Adelaide. Immediate Cash Settlements, No Real Estate Agents, No Fees.
[email protected]
phone 0412 437 582Hi Fredo & welcome to the forum,
I may be biased but I would suggest the services of a good mortgage broker, In most cases it wont cost you a cent as most of us don’t charge our clients a fee for our service as we are remunerated by the lending institutions.To many variables for any broker to suggest an appropriate lender structure or rate without more details, 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.
most of us don’t charge our clients a fee for our service as we are remunerated by the lending institutions.Steve…this is the bit that I always have trouble with. How do you squeeze the lending institutions for lower rates when you work for them and are renumerated by them. Surely there is a conflict of interest there somewhere ??
Is it like sitting down as a buyer with the real estate agent who is paid by the vendor and asking him how to get the lowest price ??
What leverage do you have against the banks ?? Are brokers price takers or price setters ??
I haven’t used a broker in over 10 years after a horrible debacle that cost us over $ 15K, a very significant sum when first starting out.
Hopefully the whole show has been cleaned up in that time.
Any comments ??
Cheers,
Darryl Moore
“No point having a cake if you can’t eat it.”
You may want to check out http://www.yourmorgage.com.au
they will give u a great selection to choose from,eg. homepath offers 6.46 or carrington offers an all in one loan for 6.47Good luck
Brian Busuttil
0416297666Hi Darryl,
You raise some interesting questions.
I don’t believe the majority of brokers see themselves as working for the banks, I certainly don’t have any allegiance to them and have no problem negotiating with them, the number 1 priority is and should always be to find the most suitable lender and product for the client, that may sound like a cliché but it’s the only way for a broker to operate his/her business if they intend to work in this industry for any reasonable length of time.There has been instances of unethical brokers operating without the clients best interest at heart, fortunately the MIAA have raised the bar for existing and new entrants coming into the industry by way of minimum education requirements and transparency with full commission disclosure, and more recently for NSW and VIC the Finance Broking Agreement which provides the client with complete disclosure of all commission, referral fees, proposed lender fees & charges and rates etc.
As far as the banks are concerned, I think its fair to say that a few lenders view the mortgage broking industry with a certain degree of contempt, but realize due to our growing share of the market (I think its currently approx. 37% or 40% and increasing) that they need to accommodate and aggressively market there products to the MB sector or risk losing market share, the subsequent increase in competition can only be positive for the consumer. 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 all
I agree with dazzling that you find not bad brokers but unexperience brokers or anybody for that matter in any industry I use a couple of brokers for my some of my deals working with one on this forum on one (not seen a post for a while but must be busy)I am a registered broker for a group but I use brokers to get a better deal in some cases,
but more to get a deal from lenders you don’t deal with.
this leveraging gives more flexability with your lending.
I’m not one for putting all your eggs in one basket.here to help
How about the interest rates?
The banks advertise the .7% as a discount which really isnt (like buyin a car, the discount is added) Will they go further to get your business, 1.0% off – 1.5%?Yes, brokers may be able to offer many products, however they simply cannot have the capacity to keep up with all the changes that are happening with each institution and know all products inside out…….my suggestion is to refer to credible publications such as Money Magazine and Personal Investor and see who they rate as the best. Then visit a shortlist of banks/credit unions and make your own educated decision.
I have seen and work with some great brokers, but unfortunately have seen on all too many occasions too many deals cocked up by brokers.
Cheers
Matt
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