Hello everyone
I am looking at options to buy a PPOR after my other one turned into an investment property. Unfortunately my bank said no to another loan, however I know I would be able to get a loan from another lender.
So, does anyone have any recommendations on good mortgage brokers? I'm based in Canberra, so any Canberra-based ones, or national ones with office's in Canberra.
Do mortgage brokers charge a fee to me or to the bank i am successful with?
Cheers
Matt
No not normally as they are remunerated by the lenders with whom they place your business.
Richard Taylor | Australia's leading private lender
Mortgage brokers take applications for borrowers and try to fix prices and terms with creditors. They also require state and federal data. Intermediaries to obtain all necessary documents including but not limited to, credit control information through the activities and evaluation of property. Once the application is deemed complete, mortgage broker is the right of the creditor, who is then responsible for approving loans and payment.
Most people choose to invest in real estate because it has the potential to be extremely profitable. However, due to the real estate industry's competitive nature, it can often be difficult to choose the right type of home loans and mortgage lenders for your financing needs when you're in the market for a mortgage refinance, a new house purchase or to obtain a home equity loan. Therefore, because there are numerous options available to you, it can really help to work with professionals, such as mortgage brokers and mortgage lenders in order to get the best possible deal on your mortgage loan.
A good mortgage broker in Canberra
Most of us (myself included) are paid a comission from the lender you decide to go with. The beauty of using a broker is that we have access to a variety of lenders, all with different lending criteria and policies. Therefore, while one bank might knock you back, another might be more than happy to take you on as a customer.
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
If you contact a financial cash-back service, they can provide you with a full list of prospective lenders suitable to your needs, and offering the best rates. Plus because they specialise in commission, by using them as your broker, they collect the ongoing fees and commissions that you would be paying and refund them back to you, so more $ can be put back on your loan.
In my experience, mortgae brokers are ok for people with little time to actually deal directly with the banks.
I have not met one yet who can actually get a better rate than the bank will offer me in person, the logistics gets messy when there is a middle man ie:broker , involved.
Dont believe all the marketing hype around the claims that brokers "research" the best deal for you, in fact they have a rating system within banks and certain brokers who do not send thru a quota of business to the banks are not dealt with by the banks.Hence the first and foremost concern for any broker is to maximise trail, (commissions paid by banks for the life of your loan), so in a nutshell walk into the banks meet the loan managers, negotiate the best deal for yourself.
I wouldn’t walk in to the bank…
Branch lending is the “starting point” for a lender. E.g. Crap wage / often in their first 6-12 months from being promoted from a tellar. If they do well at this they move in to mobile banking or relationship management.
Mobile lending is also interesting. There are a lot of non-proformers who don’t write a lot of business. You then get the “top” mobile lenders that write 100M to 200M p/a and have a couple of staff.
Brokers are no different. There are far too many in Australia with the average broker writing less than 700k per month – or 1-3 deals. These are the guys you need to be wary of because lenders like CBA and Westpac may not deal with them (they won’t meet volume requirements).
You then get the good brokers. They lodge good volumes and often get preferred treatment from the banks. For example, a CBA diamond broker has RED Text on their deals that states “Diamond Broker”. These deals cannot be declined unless the credit manager calls the broker first, they get mortgage docs emailed to them within 24 hours of approval and their applications / settlements are processed by a seperate priority team.
In short – you can go to a bank and get declined. But then talk to a good mobile lender or good broker and get the same deal approved. Usually this relates to an experienced lender mitigating and explaining risks / reasons to approve a deal where most brokers simply fill in the forms and send them in – no comments, no notes and no relationship with credit.
The real question is how to work out who is competent and who is not… Unfortunantly I’d say the majority or brokers and bankers are not up to speed…
jandel wrote:In my experience, mortgae brokers are ok for people with little time to actually deal directly with the banks.
I have not met one yet who can actually get a better rate than the bank will offer me in person, the logistics gets messy when there is a middle man ie:broker , involved.
Dont believe all the marketing hype around the claims that brokers "research" the best deal for you, in fact they have a rating system within banks and certain brokers who do not send thru a quota of business to the banks are not dealt with by the banks.Hence the first and foremost concern for any broker is to maximise trail, (commissions paid by banks for the life of your loan), so in a nutshell walk into the banks meet the loan managers, negotiate the best deal for yourself.
If this is your belief then i suggest you refer to my previous comment and rethink your finances because form my experiences its actually been the opposite.
Dennis,
I’ve spent most my life in banks. Now out but still advise a little.
Of course you can get a better rate. Especially in business banking where as a banker you include brokerage in the aquasition cost of a deal – and set you margins accordingly. Brokers offer superior choice. Bankers offer supieror price and flexability (with one lender). Its always been the same.
Re cash back brokers – you won’t find an expeienced broker that offers this to the average client. A few years ago I had to train a group of brokers from a new franchise group ( I’m sure you can guess which one). One turned up to my training session with wearing a dog collar, his wife in a gothic costume:-)
With the average broker in Australia settling approx 700k per month and netting approx 0.5% upfront (3500 p/m). You would have to be a little worried about the ones that pay you to be their customer..
Hi,
Although different to how things are done in Aus, the process described here is presumably how things are done in the US.
Perhaps it would be constructive if someone with experience could outline how the process differs (for better or worse) in Aus.
– Admin
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