Is A Mortgage Broker Necessary?

[BuildingBlocks]

I don't know why anyone would not want to go through a broker.

Their job is to know what is happening in the lending world, then choose the best deal for you, without costing you a cent.

I have found things very smooth and know that my questions are only a call away, and they know who I am if I do call or email!

But ...maybe I see this being a very one sided issue as I was referred to one of the good brokers.

 

[APerry]

A Broker is definately not necessary, but neither is a lawyer if you are in court. They are just a good idea. The difference is a lawyer costs you money, a broker doesn't.

Much of the discussion has centered around processing times and getting the best product. I would suggest that whether approval takes a day, a week or two weeks (unless there is a very short settlement for some reason) it really makes no difference. Choosing good products is important. but more so in the cotext of choosing products that allow for an optimum loan and repayment structure. Interest rate comparisons are easy, anyone can go to Cannex and get one.

Investors generally need even more than this though. Someone trying to build a portfolio needs advice on what they should look for in a property, what is an appropriate LVR to buy at etc. in order to be able to acheive waht they set out to do. A broker who has a lot of experience with investors can be an invaluable resource in this regard. People on here are lucky, as there are so many knowledagable brokers who contribute here.

 

[KAMBO]

I haven't found a place yet (looking for a PPOR) but I'm looking.

I ask because I don't feel comfortable giving a stranger my financial details when I haven't found anything sound.

In comparison when I go shopping, its to buy something that I know I want, can afford etc. Shopping is more paying for the goods and leaving to come home.

If online calculators are saying I can borrow in excess of $800K, but I only need $350K and have a genuwine deposit >20% at what point do I organise a meet with a mortgage broker e.g. Mortgage Choice? Isn't this what "subject to finance" is all about?

 

[Rolf Latham]

Hi Kambo

U are probably right.

On average I would recommend a client like u dont bother with a Pre approval unless you want to go without the finance clause.

Many brokers and lenders use the preapproval thing as a method to get some from of sales commitment from the borrower.

Many times the preapproval goes to waste and the clients CRAA has been hit for no outcome and its all been a bit of a waste of time all round

Now if u needed LMI, or had marginal Servicing or savings then get a pre approval

ta

rolf

 

[Peter_Tersteeg]

If online calculators are saying I can borrow in excess of $800K, but I only need $350K and have a genuwine deposit >20% at what point do I organise a meet with a mortgage broker e.g. Mortgage Choice? Isn't this what "subject to finance" is all about?

Keep in mind that the online calculators are generally in no way an accurate reflection of your borrowing capacity, and they're usually overly optimistic. The way these calculators figure out income and outgoings from existing debt is usually not reflective of the lenders actual policy. They don't account for investment income or gearing benifits very well either.

Given that the calcuator is showing over twice what you need and your deposit is over 20%, I'd say you won't have a problem with finance, but consulting a broker to get a properly qualified opinion is always a good idea.