Mortgage Broker ..

Hi Tass. What is the name of the business/company? It is not often that you would find (due to industry regulation) private people approached by a mainstream lender or broker, and even if so, it would be very unprofessional and misleading to make a blanket generalisation that they could save you money without knowing your loan. Imagine if someone had a fixed rate loan with anyone of a year or so ago? Impossible. Or something like a Bankwest Lite, ING Mortgage Simplifier, or Wizard Clear value Loan now,.? Sure there is cheaper, but not enough to make that much difference when you look at comparison rates, fees etc. Likely to be an organisation promoting a ‘you pay us this, and we will show you a stragegy to pay of your loan quicker’. A half good broker will show you how for nothing, which will be using direct salary crediting, and making any other extra repayments while you can, or perhaps instead suggesting weekly or fortnitely payments instead of monthly – Need discipline for one way, and common sense for the other. Nothing new that you need to pay someone to tell you. Then again, if they give you a bit more solid info, and don’t put pressure on you (unlikely) it is up to you if you have an hour to kill or not. Bear in mind, if you were approached via a business phone number (if you own one!) it is more likely to be just a genuine canvass or cold call. keep us posted.[strum]

Tass . Check with your existing bank if you will be charged a fee for refinancing your mortgage away from them.
Ask the broker what fees the lender is going to charge you to set up a loan. Are the establishment fees deferred or upfront. What time frame is there for the deferred fees to not be charged if you break the loan.
Is the broker a member of the MFAA, COSL (odbudsman) and do they have professional indemnity insurance will the broker disclose to you what commissions he/she will get paid from the lenders. Tell your existing bank you want to know what it will cost to refinance away from them as a mortgage broker just rang you up and ask the mortgage broker what is the best interest rate and is it an introductory interest rate for one year or two years or three years. Ask what monthly bank fees are you going to pay. Ask the broker is he/she going to offer you an offset account and ask them how it works.

Brett Duxbury
Duckster Financial Services
Mortgage Broker
http://www.ducksterfinancial.com

Comments are of a general nature and may not be relevant to your individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.