Browse Forums Home Finance 1 Dec 13, 2008 2:00 pm Hi, every one. I am just wondering if a broker is really needed to get a mortgage. I actually went to several banks to compare their products myself. Can a broker give me a discounted rate for the product compared to I directly deal with the bank? Thanks for any feedback! Re: Do I really need a broker? 2Dec 13, 2008 2:14 pm Well the way I would put it.. it doesn't cost you anymore to use a broker so why not get someone else to do all the work for you. sydney home loan centre, sydney home loans 3Dec 13, 2008 3:11 pm I can try to answer this question by asking you some questions.
How do you organise your overseas travels over Christmas? Do you ring every airline to do a fare comparison? Do you then ring every hotel in every city you will visit and every car hire company in the country to obtain rental pricing, then call every insurance company to get the best travel insurance? Once you find the best deals, do you then check several times a day for availability and reservations? Yes, you can get better pricing if you ask a mortgage broker, arrange fee waivers and find the lenders that have higher satisfaction ratings (objectively using published research) as well as quickest processing times. All our clients have to worry about is choose which gift they would like at settlement. I hope that helps. Re: Do I really need a broker? 4Dec 13, 2008 3:52 pm Hmm, well I didn't go with a broker, I was quite happy with our credit union and had dealt with them before for loans etc, I made my own comparisons and was happy to take out this mortage with them too. Re: sydney home loan centre, sydney home loans 5Dec 13, 2008 4:00 pm thlo ..... Do you ring every airline to do a fare comparison? Do you then ring every hotel in every city you will visit and every car hire company in the country to obtain rental pricing, then call every insurance company to get the best travel insurance? ....... Bad analogy as more than 50% of Australian's now book everything themselves online - people aren't using Travel Agents Building Upside down house in Wantirna VIC Current Stage: Procrastination... it's just all too hard.... Blog: http://thereluctantbuilder.blogspot.com/ Re: Do I really need a broker? 6Dec 13, 2008 7:29 pm wakeboardandy Well the way I would put it.. it doesn't cost you anymore to use a broker so why not get someone else to do all the work for you. Yes it does, because the brokers get kickbacks from the financial institutions when they sign people up and they in turn recoup their costs through the interest rates that they charge us all. Just like a travel agent receiving their fees from the airlines, who cover the cost of that through ticket prices. We ALL pay when people use brokers. I didn't use a broker. Simplicity was more important to me; this doesn't mean getting someone else like a broker to do the legwork, but rolling over my existing basic loan with my existing lender. Too easy. The few cents I might have saved by going through a broker would not have compensated for the hassle. I get the impression that many people are absolutely fearful of taking the plunge and approaching the bank directly for a loan because they think they will get screwed. But they are not fearful of borrowing half a million bucks in the first place WTF??? Re: Do I really need a broker? 7Dec 13, 2008 8:30 pm okay if your with a bank that will allow you to roll over, our bank was horribly inflexible in both options after selling and options when building so theyve lost a long term client and a nice fat new loan
cant wait to close down all our accounts and send our message, of which they dont care mind you Blog - http://snakedr.blogspot.com/ Build Thread - viewtopic.php?f=31&t=12084&p=307406#p307406 Status - PCI 15/10. Things nearly done. Re: sydney home loan centre, sydney home loan choice 8Dec 13, 2008 9:30 pm ozkarnak thlo ..... Do you ring every airline to do a fare comparison? Do you then ring every hotel in every city you will visit and every car hire company in the country to obtain rental pricing, then call every insurance company to get the best travel insurance? ....... Bad analogy as more than 50% of Australian's now book everything themselves online - people aren't using Travel Agents so you are not aware that online booking services are actually agents??? as per my example; if you are not phoning or emailing to book your hotel room direct with each hotel and car hire company etc, you use an AGENT. sydney home loans. home loan choice 9Dec 13, 2008 9:43 pm Eager wakeboardandy Well the way I would put it.. it doesn't cost you anymore to use a broker so why not get someone else to do all the work for you. Yes it does, because the brokers get kickbacks from the financial institutions when they sign people up and they in turn recoup their costs through the interest rates that they charge us all. Just like a travel agent receiving their fees from the airlines, who cover the cost of that through ticket prices. We ALL pay when people use brokers. so you go to your dairy farmer direct to buy your milk too, as you are probably not happy for coles or woolworths to make money on providing their service to you. sorry to break it to you, distribution costs money, whether it's the bank paying fixed salaries, bonuses, telecommunications costs, and buying cars and petrol for their lending staff or paying a commission to a broker for doing their work for them. Banks still have internal staff for those customers who choose to deal direct, but for a growing number of customers who like to choose from a bigger range of lenders (local and interstate) and receive personal service and advice from their broker, this is available too. Re: Do I really need a broker? 10Dec 13, 2008 10:39 pm I think it is useful to go to a broker and see what's the best deal they can do for you. This is quite useful as they'll have a large panel of lenders who are usually the major banks and other well known lenders.
However, I think it's also useful to do your own research too. For example, depending on what features you're looking for, some credit unions have competitive loans but they don't use brokers to get them customers (as far as i know), you'll need to talk to them directly. We initially went to a broker but found a more suitable loan through a credit union directly.. Winnie ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Built PD Regent 23 in Brimbank Gardens sydney home loans, sydney home loan advice 11Dec 13, 2008 10:49 pm winniey I think it is useful to go to a broker and see what's the best deal they can do for you. This is quite useful as they'll have a large panel of lenders who are usually the major banks and other well known lenders. However, I think it's also useful to do your own research too. For example, depending on what features you're looking for, some credit unions have competitive loans but they don't use brokers to get them customers (as far as i know), you'll need to talk to them directly. We initially went to a broker but found a more suitable loan through a credit union directly.. We have credit unions and building societies on our lending panel. Re: Do I really need a broker? 12Dec 13, 2008 10:54 pm hey, thanks for any reply.
I am kind of a person that wanna to figure out everything even if I use the service of a professional. Sometimes it's just my curiosity to make everything clear to myself (Sigh). So I would say even if I use a broker, at the end of the day, I might engage myself studying all the options he offered me. That's why I am not sure if I really need it. Besides, the broker said he could come to my place to discuss the loans. So I am also afraid if I would turn out be too embarrassed to say No to him considering he travelled a long way! sydney home loan advice, sydney home loans 13Dec 13, 2008 11:01 pm Mango-lover hey, thanks for any reply. I am kind of a person that wanna to figure out everything even if I use the service of a professional. Sometimes it's just my curiosity to make everything clear to myself (Sigh). So I would say even if I use a broker, at the end of the day, I might engage myself studying all the options he offered me. That's why I am not sure if I really need it. Besides, the broker said he could come to my place to discuss the loans. So I am also afraid if I would turn out be too embarrassed to say No to him considering he travelled a long way! If he is a true professional, he will respect your choice. But i am certain you will see the benefit of someone else dealing on your behalf, like your personal advocate, with the banks. Re: sydney home loans. home loan choice 14Dec 14, 2008 7:47 pm thlo Eager wakeboardandy Well the way I would put it.. it doesn't cost you anymore to use a broker so why not get someone else to do all the work for you. Yes it does, because the brokers get kickbacks from the financial institutions when they sign people up and they in turn recoup their costs through the interest rates that they charge us all. Just like a travel agent receiving their fees from the airlines, who cover the cost of that through ticket prices. We ALL pay when people use brokers. so you go to your dairy farmer direct to buy your milk too, as you are probably not happy for coles or woolworths to make money on providing their service to you. sorry to break it to you, distribution costs money, whether it's the bank paying fixed salaries, bonuses, telecommunications costs, and buying cars and petrol for their lending staff or paying a commission to a broker for doing their work for them. Banks still have internal staff for those customers who choose to deal direct, but for a growing number of customers who like to choose from a bigger range of lenders (local and interstate) and receive personal service and advice from their broker, this is available too. You're right, I'm not happy with the service (mark-ups) that supermarkets provide, neither are a lot of other people, which is why they buy their produce from a market. Milk is a bit different I'll admit, but within the supermarket you can get the quality-equalling homebrand basic product for a good price. No-one needs a third party to tell them that it is available! Re: Do I really need a broker? 15Dec 14, 2008 8:27 pm I agree with you Eager. Generally an unnecessary third party in what is typically a simple transaction. Of course there are always exceptions to the rule. I've never needed one, and I can't see that changing. Re: Do I really need a broker? 16Dec 14, 2008 8:47 pm Having first hand experience in thlo's position I gotta say ... its a difficult gig!
I spent a few years as a business manager in Car Sales and that was really easy. Simply provide the same 'rate' as the banks are offering and people signed up. Forget the fine print it was all about the interest rate. I also spent a few years working as a mortgage broker (part time) and at the start it was all about the customer but after a while it became about the trailing commissions and the up-front fees. Most of the loans we did were upwards of 1 million and these customers were rate conscience as well. Not everyone, but a lot of people see 4.99% and that's the hook. Some people see "professional rates" .7% off for the life of the loan and that's the hook. Rarely do people dive in and read the fine print and really see what they are signing up for and even if they do read the fine print they don't know what it means anyway. Brokers, are not all bad. Think of them as a couple of rungs above car sales men and real estate agents. We don't really need them but they do provide a service that is somewhat useful. They do kinda help to 'Keep the bastards honest' .... sydney home loan advice, home loan choice 17Dec 14, 2008 9:42 pm mattwalker I also spent a few years working as a mortgage broker (part time) and at the start it was all about the customer but after a while it became about the trailing commissions and the up-front fees. Brokers, are not all bad. Think of them as a couple of rungs above car sales men and real estate agents. We don't really need them but they do provide a service that is somewhat useful. They do kinda help to 'Keep the bastards honest' .... The kind of broker that you describe left the industry when the banks cut commissions by 40%. They are now working for banks or back doing their old trades, like painters, cleaners, taxi drivers. For us it's still about the customer. I don't see any bank staff answering lending related questions at public forums, 7 days a week. Thanks for sharing your experience though. As I wrote in several posts before, choice is there for consumers. Large segment of borrowers don't know a time where there were no mortgage brokers. I don't think you can change their desire to deal with brokers, they don't like dealing direct with banks. Re: sydney home loan advice, home loan choice 18Dec 14, 2008 10:56 pm thlo The kind of broker that you describe left the industry when the banks cut commissions by 40%. They are now working for banks or back doing their old trades, like painters, cleaners, taxi drivers. Yes they are... thlo For us it's still about the customer. I don't see any bank staff answering lending related questions at public forums, 7 days a week. Thanks for sharing your experience though. And thlo, please don't think this is about your personally, I dont mean to generalise. The contribution and information you provide here is first class and extremely insightful. I am purely talking about my personal experience and opinions... thlo As I wrote in several posts before, choice is there for consumers. Large segment of borrowers don't know a time where there were no mortgage brokers. I don't think you can change their desire to deal with brokers, they don't like dealing direct with banks. I agree and I still appreciate that there are people out there who need and require the services you provide. Banks are hard work (and completely impersonal) and don't provide the friendly touches that a good broker can! home loan choice, sydney home loan advice 19Dec 15, 2008 4:44 pm thanks for clarifying your point. i didn't take it personally.
We're here to provide a (free) service for home buyers and the reason people use brokers to help choose a home loan from their chosen bank (or credit union) is not because of better rates but because of SERVICE, that is personal service far superior than what you can receive from a bank employee who works 9 to 5. Having a third party such as an Accredited and Certified Broker negotiate better rates and fees with the banks is just one part of that service. Re: Do I really need a broker? 20Dec 19, 2008 1:53 pm I remember seeing in this forum that if using Choice, at the tender appointment with Porter Davis, I don't need to pay much. But if go without Choice, 5% needs to be paid. I can't find that thread. Could anyone clarify this for me? Also,correct me if I'm wrong: if I don't go with Choice, the bank that I directly deal with will pay the 5% for me. ? do not pay until you are satisfied with workmanship windows require flashing over the head archithrave and up under weatherboards 3 28277 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… 2 46010 Thank you so much for the effort. We will use it to talk with builder. We also had idea of building duplex instead and seeking suggest ions. viewtopic.php?f=31&t=106744 11 13832 |