Mortgage Brokers - Are They Necessary?
- Thread starter i010105
- Start date
No.
They can get you what is in the marketplace.
However a good broker can add a lot of experience to your side and also has been involved in 100's of transactions. Given that they don't charge anything where can you go wrong? They know the intricacies of each lender and have a dedicated submission network where they can track loans at every step.
Only place to go wrong is getting a dodgy broker. You can reduce this risk by asking for referrals from people you trust.
Cheers,
They can get you what is in the marketplace.
However a good broker can add a lot of experience to your side and also has been involved in 100's of transactions. Given that they don't charge anything where can you go wrong? They know the intricacies of each lender and have a dedicated submission network where they can track loans at every step.
Only place to go wrong is getting a dodgy broker. You can reduce this risk by asking for referrals from people you trust.
Cheers,
They might not necessarily get you a better deal, and there are some organisations (the no frills subsidiaries of the big banks, for example) that do not deal with brokers.
HOWEVER, if someone is interested in investing serious in property (multiple properties over many years) I would definitely recommend a broker. A good broker who knows your situation and works with you is priceless. Especially in the middle to later stages of your investing career, when you might hit serviceability hurdles, etc.
Build a good relationship with a broker early, and it'll save you a lot of issues later on. As Simon said, brokers generally don't charge up front fees (avoid those who do), so you're not paying for their fees anyway.
Alex
Hiya
Before answering that q, why is it being asked ?
If your core focus is rate, stick to net only lenders, but I suppose that depends on what "deal" means for you ?
ta
rolf
Before answering that q, why is it being asked ?
If your core focus is rate, stick to net only lenders, but I suppose that depends on what "deal" means for you ?
ta
rolf
I'm using a broker for the first time for my current deal. I could not have done it without him. He's spent a considerable amount of time sourcing the right type of finance for me...stuff I never knew existed. He's taken all the tooing and froing out of the process for me, and has taught me heaps.
Would I use him again? You bet...he's on my team now.
I run my life like a company. I'm the managing director. My parents used to be the board of directors, but they got the sack many years ago, when I no longer relied on them for guidance in running my life.
I have a long list of experts, all of whom I employ on a casual basis to handle different departments of my life, where I have little or inadequate expertise. I have a dentist, doctor, lawyer, accountant, finance broker, car mechanic, builder, architect, plumber, electrician, hair dresser, optician, insurance broker, gardener, etc. Tis a long list....tis a very important enterprise...MY LIFE!
Would I use him again? You bet...he's on my team now.
I run my life like a company. I'm the managing director. My parents used to be the board of directors, but they got the sack many years ago, when I no longer relied on them for guidance in running my life.
I have a long list of experts, all of whom I employ on a casual basis to handle different departments of my life, where I have little or inadequate expertise. I have a dentist, doctor, lawyer, accountant, finance broker, car mechanic, builder, architect, plumber, electrician, hair dresser, optician, insurance broker, gardener, etc. Tis a long list....tis a very important enterprise...MY LIFE!
I run my life like a company. I'm the managing director. My parents used to be the board of directors, but they got the sack many years ago, when I no longer relied on them for guidance in running my life.
Well put sailor!
I like the analogy.-- MJ.
What exactly have you learnt Shaz? that you couldn't have learnt on SS?
Please share....
Has he recommended Westpac? or are you talking about accounting stuff he isn't qualified to advise about?
G'Day
Well, I surprised even myself with an application I took tonight.
Started the week with the customer that nobody wanted. Ended the week with three quality scenarios for him - not only will he get $3,500 cash back at settlement (yes, folks, that means he not only buys the property with none of his own money, he actually gets cash out of the deal!), but his employer was so impressed that he is buying a house that they have restructured his position from casual to ongoing - and for a Government department this is amazing!
The customer is a young graduate, only been working six months, buying his first house, eligible for the First Home Owner's Grant. Not a flash property, two up, two down, but clean and near a park and a small shopping centre.
Did I get a 'better deal than what's in the mortgage market'? Nope, but I found the deal within the mortgage market - only took me about 40 hours to find it, in fact I found it buried in an email from this lender's BDM from about four months ago, so it was always there. Now that I have found it, well, big deal, it's nothing flash (yeah, right!)
Anyway, find yourself a broker who, as sailor so aptly phrased it, becomes part of your team. Find yourself someone you like, whose expertise you respect, whose service levels match your expectations. Once you have found them, never let them go (yes, yes, Some Enchanted Evening, must be Rogers and Hammerstein week!) and over the years a good broker will do for you what a good accountant, solicitor, building inspector, estate agent, property manager etc will do for you: Help you grow your wealth and manage your assets as they accumulate.
But if, at this stage, you are just 'thinking' about getting started with property investment, and you meet top quality people early on, you may not get the chance to realise that top quality service, like top quality anything in life, is quite rare.
Sometimes we have to meet a few duds and make a few mistakes before we are ready to deal with people who actually know what they are doing.
Maybe it will take you a few ordinary deals, before you have a base to compare what a 'better deal' actually is.
Have a great time on the journey, it really is a lot of fun!
And my customer owes me, big time! He will absolutely have to invite me to the housewarming. Funny, but the bank which will be making it possible for him was the bank his grandparents borrowed from when they bought their first farm when they arrived in Australia as refugees. Small world - but a happy one!
Cheers
Kristine
Who's nobody?
Hi tfb
OK: I deal with a panel of thirty lenders. I sent emails to about 15 of those lenders - the others I didn't bother with as their policies are quite strict - no deviations - regarding employment history.
Of the 15 I got back mainly sorry, come back to us in another year or so, type replies. Two of those lenders had previously done deals for customers who had had chequered employment histories, yet they weren't interested in my Honours graduate!
Very strange.
However, tenacity and perseverance are my middle names (My Mother had imagination!) and I am not exaggerating about the 40 hours work.
Still, all's well that ends well. The BDM and I had a great laugh in our last conversation - she was sitting at Launceston airport, waiting for 90 minutes for a plane, so she had plenty of time to really work the deal with me. Julie is a real trouper, maybe she should be invited to the housewarming, too!
Oh, I did mention that the LVR comes in at about 104.9%, didn’t I?? Yes! Now that’s what I call a good deal. I owe Julie!
Please excuse the high spirits, I really am chuffed about this one! Nice young man, nice house, good deal! That's what makes the world go round.
OK: I deal with a panel of thirty lenders. I sent emails to about 15 of those lenders - the others I didn't bother with as their policies are quite strict - no deviations - regarding employment history.
Of the 15 I got back mainly sorry, come back to us in another year or so, type replies. Two of those lenders had previously done deals for customers who had had chequered employment histories, yet they weren't interested in my Honours graduate!
Very strange.
However, tenacity and perseverance are my middle names (My Mother had imagination!) and I am not exaggerating about the 40 hours work.
Still, all's well that ends well. The BDM and I had a great laugh in our last conversation - she was sitting at Launceston airport, waiting for 90 minutes for a plane, so she had plenty of time to really work the deal with me. Julie is a real trouper, maybe she should be invited to the housewarming, too!
Oh, I did mention that the LVR comes in at about 104.9%, didn’t I?? Yes! Now that’s what I call a good deal. I owe Julie!
Please excuse the high spirits, I really am chuffed about this one! Nice young man, nice house, good deal! That's what makes the world go round.
What exactly have you learnt Shaz? that you couldn't have learnt on SS?
Please share....
Has he recommended Westpac? or are you talking about accounting stuff he isn't qualified to advise about?
What I learned from my Finance Broker, that I didn't learn on SS:
1. That when using a hybrid trust to own an IP, the bank want to sight in person the trust deed before they'll approve the loan.
2. That Westpac need 4 weeks to peruse my trust deed, because their legal dept are back-logged.
3. That if you pay Westpac an additional $100 they will reduce that 4 weeks to 4 days.
4. That if most banks will turn you down because the property has termites, he knows which one will accept it.
5. That he has more time to search out loans than I do.
6. He knows I don't like being called Shaz!
6. He knows I don't ike being called Shaz!
Sorry Shazza.....it's a 70s hangup thing......
does that mean you went with Westpac?
P.S. call me Dazz if you feel like venting
Look for the brokers that post here from Melbourne, prob a good strart if you need face to face
ta
rolf
ta
rolf
P.S. 010105, there's a rumour going around that the Rolfs are propagating throughout Australia........currently, there's a Rolf in Qld and Vic.....I nominate we change their name to
"Rofl Mortgage Brokers
laugh your way into good debt"
Personally, NO, I would start by talking to some of the mortgage brokers on this forum - the 2 Rolfs, Kristine, Simon come straight to mind - there are many others as well - their wealth of knowledge (and eagerness to share that knowledge and genuinly help you with it) and the fact that they invest in property themselves is the best starting point you can get!! Seriously, you will not find better brokers than are on this forum - all those little random questions you may have - they've been there, done it, and can easily answer them. You may not get a "better" rate, but you certainly won't get a worse rate, and if your goal is to purchase multiple properties, they can set you up in the right direction now!
Cheers,
Jen
Sorry Shazza.....it's a 70s hangup thing......
does that mean you went with Westpac?
P.S. call me Dazz if you feel like venting
Hi TFB...same goes for "Shazza"....build a bridge...get over it!
Yep, because of the termites I couldn't get enuf LVR on the purchased property, so went with Wetpac (not a typo). Did the remainder with a LOC.
When I get rid of the termites, and do a couple of renos, I'll get the place revalued and up the mortgage.
Just got my first apartment- my broker mentality went..
1. I think I need one (so I chat to a few)
2. Wait, a minute, I can get a great deal without them (woo Virgin money)
3. Oh NO my great deal fell through what to do what to do?!?!
4. Now i NEED a broker
Mind you, we had a tight 3 week finance clause on the contract, so our situation was pretty stressed.. but from dealing with the bank directly to dealing via a broker, I must say it makes the WORLD of difference.
they deal with the bank, all the documents etc is all their problem- our conveyancer appreciated it because they didn't have to deal with the bank- they just called the broker! AND you don't even have to pay them (bank takes care of that).
I thought I didn't need one inititally, I changed my tune pretty quickly...
1. I think I need one (so I chat to a few)
2. Wait, a minute, I can get a great deal without them (woo Virgin money)
3. Oh NO my great deal fell through what to do what to do?!?!
4. Now i NEED a broker
Mind you, we had a tight 3 week finance clause on the contract, so our situation was pretty stressed.. but from dealing with the bank directly to dealing via a broker, I must say it makes the WORLD of difference.
they deal with the bank, all the documents etc is all their problem- our conveyancer appreciated it because they didn't have to deal with the bank- they just called the broker! AND you don't even have to pay them (bank takes care of that).
I thought I didn't need one inititally, I changed my tune pretty quickly...
Sounds like you found a useful one. If I was the author of this thread I would be PMing you for the details.
