Browse Forums Home Finance 1 Oct 21, 2011 12:53 pm Hi everyone, Just wondering if someone can offer any advice on this one. We have spoken to two mortgage brokers regarding financing our land and then later on our build. For the build we will be using guarantors (to avoid LMI) who don't want to move their own mortgage so our choices are Bank SA or CBA. The first broker is from a smaller company and extremely competent and experienced. She wants us to go with the BankSA Advantage Package which seems to cover everything we need even if it isn't the cheapest loan out there. The second is from a much larger mortgage broking company and although she is very nice, she is new to the job and couldn't give us as much detailed advice. She wants us to go with the CBA no-fee loan and change over to a MAV package, whatever that is. It's cheaper and has a lower rate than the BankSA option. We had looked at the no-fee loan with the first broker but stopped when we saw that the minimum loan amount is $150k and our loan for the land would only be $109k. I mentioned this to the second broker but because it showed up as an option in her company's special branded software, we guessed that maybe this large company has a special arrangement with the CBA. She said 'yeah, that's what it is' though she really did not seem sure. My question is - I know brokers can get special discounted rates, but does it sound likely that they can get a particular loan under the minimum loan amount? It seems unlikely to me, and I'm worried she said yes because she didn't know. Perhaps the loan could have been uploaded incorrectly in the software? Timing is quite important here as we do have a contract waiting 'subject to finance' so I don't want to go ahead with this loan and then find that we have wasted time doing so. Naturally I'm also wondering if we should be going with a broker who seems so inattentive to detail and inexperienced. Also, I was wondering if anyone has any words of wisdom regarding these loans with BankSA or CBA overall? Any help will be MUCH appreciated as we really need to make a decision soon. Like, today. Thanks, Juski edit: syntax correction 5.5m Terrace House - Lightsview (Northgate SA) Moved in!! - 22 February 2013 /viewtopic.php?f=31&t=53455 Re: Can a broker override minimum loan amount? BankSA or CBA 2Oct 21, 2011 10:49 pm juski My question is - I know brokers can get special discounted rates, but does it sound likely that they can get a particular loan under the minimum loan amount? It seems unlikely to me, and I'm worried she said yes because she didn't know. Perhaps the loan could have been uploaded incorrectly in the software? Timing is quite important here as we do have a contract waiting 'subject to finance' so I don't want to go ahead with this loan and then find that we have wasted time doing so. Naturally I'm also wondering if we should be going with a broker who seems so inattentive to detail and inexperienced. Banks product criteria including maximum and minimum individual loans amounts are set in stone unless obtained as part of a package. Brokers generally can not get this varied. In any case ALWAYS go with an experienced broker. Whilst the software assists brokers it should not be relied upon and sometimes is either incorrect of slow to be updated. Re: Can a broker override minimum loan amount? BankSA or CBA 3Oct 23, 2011 12:41 am Thanks for your advice Mike. I emailed the second broker and pointed out to her where on the CBA website it said the minimum loan amount, and asked her to show me something that said she could get otherwise. A few hours later I got a response admitting I was correct and posing another alternative.. but she'd already lost me. We're going with the first broker. Goes to show the software is not always right! 5.5m Terrace House - Lightsview (Northgate SA) Moved in!! - 22 February 2013 /viewtopic.php?f=31&t=53455 nothing to do with salespeole. you'd do well to read and ccomprehend the post before bashing away at the keys with some negative comment again. 4 5046 The biggest challenge will be if you take out a loan and then run out of money - you'll have an incomplete security and lenders do not like this so you can get stuck.… 2 13488 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 43732 |