Brokers
- Thread starter bojangles
- Start date
Hiya Bo
How much is the fee ?
ta
Rolf
How much is the fee ?
ta
Rolf
Dunno...
But you go thru most threads on the forum and heaps will say something along the lines of the cheapest rate isnt the best product for what you want.
What I think your question is revolving around moreso is getting stuck with a 600 bill if you dont proceed with the broker. I fully enforce my clauses as long as we get to unconditional but that is more because we're running a business - we spend time on the road, processing the application, making sure its all lined up, organising valuers, settlements, solicitors, insurances, arguing with a mortgage insurer because a client had a default which nobody knew about or finding a lender who will accept a clients numerous defaults etc etc.
This is inbetween keeping clients in the loop, chasing up the banks etc... the list doesnt end ever really. So as a broker we're still running a business, so we have fuel costs, internet, public liability insurances, storage fees, office space - same expenses as any other business, plus bills to pay of our own
So to do all of the work for free and then get told 'too bad' at the end can mean (not that it happens heaps) and you're out of pocket for what - easily 15 hours work. Find me anyone who works for free for 15 hours. If they do then I'm happy to get them over to my building so I can save $32k on painting it.
Then have the possibility where the clients really shopping you on rate and a few months later they refinance and all the money the lender pays out gets taken back and the broker then suffers a loss well and truly.
IMO - forget that - I'm not in business to just drive around and give advice and do work for nothing in return.
But I also find it weeds out the bullshi* artists or people who arent being totally upfront with us - and those are the clients I (and I suspect most brokers) really dont want anyway.
But you go thru most threads on the forum and heaps will say something along the lines of the cheapest rate isnt the best product for what you want.
What I think your question is revolving around moreso is getting stuck with a 600 bill if you dont proceed with the broker. I fully enforce my clauses as long as we get to unconditional but that is more because we're running a business - we spend time on the road, processing the application, making sure its all lined up, organising valuers, settlements, solicitors, insurances, arguing with a mortgage insurer because a client had a default which nobody knew about or finding a lender who will accept a clients numerous defaults etc etc.
This is inbetween keeping clients in the loop, chasing up the banks etc... the list doesnt end ever really. So as a broker we're still running a business, so we have fuel costs, internet, public liability insurances, storage fees, office space - same expenses as any other business, plus bills to pay of our own
So to do all of the work for free and then get told 'too bad' at the end can mean (not that it happens heaps) and you're out of pocket for what - easily 15 hours work. Find me anyone who works for free for 15 hours. If they do then I'm happy to get them over to my building so I can save $32k on painting it.
Then have the possibility where the clients really shopping you on rate and a few months later they refinance and all the money the lender pays out gets taken back and the broker then suffers a loss well and truly.
IMO - forget that - I'm not in business to just drive around and give advice and do work for nothing in return.
But I also find it weeds out the bullshi* artists or people who arent being totally upfront with us - and those are the clients I (and I suspect most brokers) really dont want anyway.
I have used I. Direct. Basically they value their time and therefore have the fee credit set up so that they get paid for their time if the client pulls the pin after the broker has done a lot of the work. We had one loan preapproved that we didn't proceed with and they didn't take any money from us when we decided not to proceed.
I expect that doing this after formal stage approval would have been a different story.
This company only deal with property investors - so they say.
I expect that doing this after formal stage approval would have been a different story.
This company only deal with property investors - so they say.
Seems like a reasonable set up
As has already been mentioned..........free advice is ok, to a point.
ta
rolf
As has already been mentioned..........free advice is ok, to a point.
ta
rolf
I've been tempted to start doing a similar thing also. The reason being due to a number of factors. The 3 main ones I guess are.....
Increased fuel/travelling costs
Commission cuts by lenders (need higher conversion ratios)
Clients taking my advice and then "deciding" it was just as easy to go direct to the lender.
The 3rd thankfully doesn't happen often (3 last December got the blood boiling a little).
Regards
Steve
PS.....still plenty of us who don't charge if thats what make you comfortable but please ensure you understand WE are looking out for YOUR best interests and in turn deserve to write the business if doing the job you ask from us. (not implying you would do any different).
Increased fuel/travelling costs
Commission cuts by lenders (need higher conversion ratios)
Clients taking my advice and then "deciding" it was just as easy to go direct to the lender.
The 3rd thankfully doesn't happen often (3 last December got the blood boiling a little).
Regards
Steve
PS.....still plenty of us who don't charge if thats what make you comfortable but please ensure you understand WE are looking out for YOUR best interests and in turn deserve to write the business if doing the job you ask from us. (not implying you would do any different).
This is what you guys need to protect yourselves from - so it is fair that you be compensated for your effort to get the finance beyond a certain stage.
Saying this, I realise that inexperienced (and experienced) brokers would tend to offer all of their time and service for free as a carrot to establish their business and client base. Most would probably not be game to throw a charge in for lost time if the client pulled out of the deal beyond a certain point.
Hiya Bo
Pretty much in general.
Some aggregation Groups dont have some odd lenders
For eg I use both FAST and Choice
Choice gives me RAMS whereas Fast gives me access to Adelaide Bank directly
Most brokers would have access to the majority of lenders
But be aware that this may not always be so
ta
rolf
Pretty much in general.
Some aggregation Groups dont have some odd lenders
For eg I use both FAST and Choice
Choice gives me RAMS whereas Fast gives me access to Adelaide Bank directly
Most brokers would have access to the majority of lenders
But be aware that this may not always be so
ta
rolf
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