Using your builders Broker

Falcon81 · Sep 25, 2023 8:22 am

Has anyone gone ahead with Mojo and used their in-house/preferred Mortgage Broker for finance? I am keen to know how this stacks up compared to using a mortgage broker that you already have a history of working with?

Our Mojo Sales rep claims that by using their broker, you get some promotional perks such as Mojo paying for the loan interest during construction (up to 12k) and paying just a 5% deposit and nothing more until your new home is complete*

Is it worth considering, or is there a catch? Thanks

ponzutwo · Sep 25, 2023 8:59 am

Falcon81

Has anyone gone ahead with Mojo and used their in-house/preferred Mortgage Broker for finance? I am keen to know how this stacks up compared to using a mortgage broker that you already have a history of working with?

Our Mojo Sales rep claims that by using their broker, you get some promotional perks such as Mojo paying for the loan interest during construction (up to 12k) and paying just a 5% deposit and nothing more until your new home is complete*

Is it worth considering, or is there a catch? Thanks

That catch, much like the 0% or 1% finance offers for cars, is in the higher upfront price (usually). So look into that more closely - cost of upgrade are likely to be where they make up the costs so as to keep base prices competitive on the marketing etc.

However if their pricing ends up comparable to your other options, its a good deal.

Using your builders broker has a few benefits to both you and the builder. The builders broker arm will receive commissions from the lenders in getting business to them. Sometimes this is quite significant. Its an extra revenue stream for them.

The main benefit to you is that their brokers will be across the exact requirements and pitfalls each lender on their panel presents, So should be able to help provide that advice when you choose your lender.

I used my builders broker for the last place. He's been great and I've used him for several other services since.

becjarrettdalton · Sep 25, 2023 9:31 am

Broker here - legislation says that every true broker must put the clients best interests before theirs so in theory they must offer you the best options for you on their panel.

So check their panel lenders - this is in the credit guide they give you up front, do they have a wide range of lenders available, and, do they use the whole range or only the same few?
Ask if the contract price for the build is the same if you do or if you don't use their broker - because the interest will be built into the contract. Ideally get someone to ring and ask for a price if you're paying cash and see what the difference is but its hard to do because of your personal variations.
And also ask for an upfront valuation - if the valuation comes in short you can anticipate that it could be because the interest cost is added on and it isn't reasonable.

If all that stacks up, it's hard to knock back the bonus offered. If you smell anything fishy go back to who you trust

nickmaj · Jun 14, 2024 4:46 pm

Falcon81

Has anyone gone ahead with Mojo and used their in-house/preferred Mortgage Broker for finance? I am keen to know how this stacks up compared to using a mortgage broker that you already have a history of working with?

Our Mojo Sales rep claims that by using their broker, you get some promotional perks such as Mojo paying for the loan interest during construction (up to 12k) and paying just a 5% deposit and nothing more until your new home is complete*

Is it worth considering, or is there a catch? Thanks

I used MJH, and same thing, buy now pay later. So far its been excellent. We have only paid the first payment, was around $25,000 total or so.

We are now 3 or so months away from the end of the build, and we haven't paid a cent, nor have we paid for any interest etc.. - once the build is done, the loan gets fully processed / drawn down and the broker pays the builder and then our loan gets converted into your standard principal and interest loan.. plus, you can then always move your loan over to your preferred bank afterwards if you want to.

So far so good for me.