Brokers
- Thread starter bojangles
- Start date
Anyone ever delt with Investors Direct? Any comments about their commitment fee?
Just approach the bank directly, if they are playing hard ball, try credit union or building society.
Credit Union Australia is keen to get loans, they do low doc and self employed loans. Their rate is comparable and their product is great. Where can you find fixed interest with no extra repayment penalties and offset account availabe and interest is not differentiated between low risk (payg home buyer) and highrisk ( low doc or self employed)?
This is fine if you are confident with your long term strategy.
If you are inexperienced and wish to acquire a property portfolio then I would go straight to an experienced broker/strategist who has been in the finance industry for many years.
Just some news on Investors Direct. Two of their main strategists have just resigned and have started their own Broking Firm.
May not be a great time to use them at present as they may well be in overload and reshuffle mode.
Hiya Bo
I prefer not to post the answer to what the difference is between a strategist and a broker is.
I assume there is an implication that a strategist thinks about things and a "broker" doesnt.
Somehow I dont think thats right, but I feel it goes back into the corporate world where titles seem to confer status and matter more than either remuneration or contribution.
More and more, experienced brokers (and I mean those with 100s of deals under their belt rather than x years in the industry) are moving to being called advisers rather than brokers.
ta
Rolf
I prefer not to post the answer to what the difference is between a strategist and a broker is.
I assume there is an implication that a strategist thinks about things and a "broker" doesnt.
Somehow I dont think thats right, but I feel it goes back into the corporate world where titles seem to confer status and matter more than either remuneration or contribution.
More and more, experienced brokers (and I mean those with 100s of deals under their belt rather than x years in the industry) are moving to being called advisers rather than brokers.
ta
Rolf
My point is, talk to the bank first directly and/or credit union/building soc (they are small enough to care) they won't bite and their service are free. Info you provide broker will be equal to what you need to provide lenders Then, compare their products with strategy offered by the broker. That way you have choice and comparison.
I agree that broker not equal strategist. Some do provide solutions, but some go for the biggest commissions. That's my view though.
Anyway, keep posting on your experience with brokers. I am interested to know.
Hi Mom
A core issue with that approach could be that the banker or cu person you are talking with has absolutely NO idea that the product they are putting you into may severely hinder future progress.
Asking a banker ( or for that matter a mono- product non bank lender) to provide a balanced lending strategy in favour of the borrower is NOT in the bankers interest. The banker will not know, nor advise you that you should get the first loan with lender x because their criteria are tougher than ours, and you should uses our loans for your 3rd or 4th ip instead of your first.
Asking a lender to map a financing strategy is akin to going to a pharmacist for your medications before getting your script from the GP.
Now, if one knows the product that one wants, and knows the impact of using for example this mortgage insurer over this one at that time, and has a good grasp of what the future product needs might be, then that is different.
A good example might be a basic fixed rate home loan for an owner occupier.
This looks pretty much like a consumer product where one may be able to compare like to like, but even there, there are some interesting variations
ta
rolf
A core issue with that approach could be that the banker or cu person you are talking with has absolutely NO idea that the product they are putting you into may severely hinder future progress.
Asking a banker ( or for that matter a mono- product non bank lender) to provide a balanced lending strategy in favour of the borrower is NOT in the bankers interest. The banker will not know, nor advise you that you should get the first loan with lender x because their criteria are tougher than ours, and you should uses our loans for your 3rd or 4th ip instead of your first.
Asking a lender to map a financing strategy is akin to going to a pharmacist for your medications before getting your script from the GP.
Now, if one knows the product that one wants, and knows the impact of using for example this mortgage insurer over this one at that time, and has a good grasp of what the future product needs might be, then that is different.
A good example might be a basic fixed rate home loan for an owner occupier.
This looks pretty much like a consumer product where one may be able to compare like to like, but even there, there are some interesting variations
ta
rolf
i concur and would encourage you to go to the bank first but as Mom says dont eliminate the broker.
Overall its about experience and not going with the 18 y/o kid who's still paying off his personal loan - they just dont have the life experience, in line, I'd think your 'normal lender' who's been with the same organisation for 20 years doesnt really know what other products are out there and is mushroomed in bank mentality.
Overall its about experience and not going with the 18 y/o kid who's still paying off his personal loan - they just dont have the life experience, in line, I'd think your 'normal lender' who's been with the same organisation for 20 years doesnt really know what other products are out there and is mushroomed in bank mentality.
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