Hi guys i have a little dilemma at the moment that i hope all you finance experts can help me with.
Basically I've saved a small deposit within the last six months just under 10k now with the FHOG of 14k i think that is a reasonable deposit of around $24K minus fees,reports etc (looking at property between 250k-320k). Now i have a broker to help me with obtaining a loan, actually his my dads broker who has helped him get fiance for 2-3 IP in the past.
Ive had meetings with him and he is a very knowledgeable professional who has been in the industry for 20plus years. He is mainly affiliated with St.George which i don't mind because i think i might choose them as my lender anyway.
Now the question is he can get the discounts just like anyone else can- what i mean is the St George Package of 1.5%of SVR and further 0.7% of SVR if your purchase price is over $250k. Now whats the advantage of him, should i just go-to my nearest ST George bank manager and haggle with them myself i mean its not like he is getting me a special discount rate or discount in fees. Should i use him? I mean i can get the same rate if i just go into the bank right. Now which one of us has more haggling power over the bank because at the moment it seems like we can get the same deal.Your thoughts are much appreciated!!!
Cheers
As a novice, you have not yet had the opportunity to experience the banks and all their stupidity.
The answer to your question is a simple one.
Option one – Go with the bank
Option two – Go with the same bank, but ues a broker.
Now my opinion is biased, but you should consider that if the rates are the same, thd the fees are the same, you will get more for your money by using the broker. You get all the bank has to offer, and then a broker whom you do not pay to give you even more advice and service. It is an easy question to answer.
Also, not to let the wind out of your sail, but you have precisely 0 bargaining or haggling power with the bank. One tiny small loan is not going to have them running around looking for new ways to impress you. You need to continue doing what you are doing, take the advoce of a (your) decent broker and have the loan set up to suit you.
Bast of luck.
Broker can also advise on how to structure the loan. Bank staff usually only advise as they have been trained – in the banks interest.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
great thanks guys for the advice . i guess we can shut this post down now hahaha- simple answer go with a broker
cheers!
hahha.. you're listening to two brokers.
anyway..i agree you get more info from brokers than from banks.
lolz hahaha
Third option… go to the discount mortgage broker so that you can get upfront + ongoing discount rates through commision rebate.and I am sure that the Refund broker (that was a plumber or carpenter etc) only weeks ago will be very helpful.
The funny thing is Wayne Ormond actually uses that point as a sales pitch when selling his franchises. "I have brokers that are writing loans today, and they were plumbers and Mechanice two months ago". "This could be you"
Find a broker that has some experience, takes the time to ask questions and understand your individual situation and pay them what they are worth.
Best of luck
Have no experience at all using discount broker….
but I guess that discount share-broking business has been well recognised.
Keen to see anyone (forumite) has experienced with discount mortage broker…
peachhomeloans
refundhomeloans
matesmortgagerates
etc…Cheers
Hi, Young Investor
I agree with the brokers here. A mortgage broker, with experience in active RE investing, will be able to provide you with good advice on loan and portfolio structuring. Of course, you have to find a good accountant to help you with your tax-returns, etc.
Also agree that it is pointless to walk into a bank to negotiate, unless you can offer $750K – $1M in loans as business to whoever you speak with. Even then, it still depends on a banker with experience in dealing with RE investors.
I enjoy seekign help from mortgage brokers too, but my problem is that I tend to do lots of research on the best loans for myself on the side, so usually by the time a broker comes back to me with suggestions, I would have found other loans that are more suitable for my situation and gone ahead.
Regards
Daniel Leecool thanks guys for the info well to ad some more info my plan is to buy my FH by June using FHOG 14k + 10k savings buy 2 bed unit within 15km from Sydney pp$280k-300k GRY 6%. During 6 months do cosmetic Reno , then revalue rent out and use eventual equity to fund deposit for further IPs . Now what kind of loan structure/products would suit that any suggestions- Ive been doing my own research but am still kind of lost. Also if you where looking at fixing rates near the end of the year for approx 3 years who would you go with and why? When you fix can you still pull equity from that for a future deposit or do you have to refinance to get that available equity out? Thanks guys.
I would use the minimum of your savings as i have mentioned and look at a 95% LVR with 100% offset A/c.
Yes subject to the increased valuation meaning the amount you pull out is above the lenders minimum loan then you will be ok.
I.e if increased valuation of 20K and you wanted 95% and that was below the lenders minimum loan you would have an issue.Remember not all lenders allow valuations to be done within the first 12 months many do others dont.
On a separate note one of the majors launched legal action against one of the discount brokers mentioned above and they are no longer taking business from this particular channel.
Sure Terry and I now certainly myself have no lenders who will not deal with us … wonder why.
Richard Taylor | Australia's leading private lender
I would use the minimum of your savings as i have mentioned and look at a 95% LVR with 100% offset A/c.
Yes subject to the increased valuation meaning the amount you pull out is above the lenders minimum loan then you will be ok.
I.e if increased valuation of 20K and you wanted 95% and that was below the lenders minimum loan you would have an issue.Remember not all lenders allow valuations to be done within the first 12 months many do others dont.
On a separate note one of the majors launched legal action against one of the discount brokers mentioned above and they are no longer taking business from this particular channel.
Sure Terry and I now certainly myself have no lenders who will not deal with us … wonder why.
Richard Taylor | Australia's leading private lender
Third option… go to the discount mortgage broker so that you can get upfront + ongoing discount rates through commision rebate.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
