Can you use more then one mortgage broker?

[Jodie701]

Hi just wondering if it's worth seeing a few mortgage brokers to see who really can get the best deal?

If I tell them that I'm seeing others, would it inspire them to find the better deal to get my business, or seem off putting to them to try because they'll only have a 33% chance or so of getting my business?

Thanks

 

[Rolf Latham]

Hiya Jodie

How long is a piece of string..........

If you know exactly what you want and how its structured , dont bother with a broker..........use the various "no advice" on line lender options that are out there...................

Most brokers that I know that specialise in a particular area will give you the cold shoulder if your main focus is price, because there is "no value add" in that, so we would be doing the client a dis service in going down that track in the first place.

If however, your are like many people and appreciate you may not have it all sussed, and you dont have it down to comparing one fridge to another, a good independent IP savvy broker can add value to your journey, and thus save you money and open future opportunities ( and maybe avoid boo boos) that you may not get with a loan or structure that saves you 5 or 10 pts here or there.

ta
rolf

 

[Rockstar]

Hi just wondering if it's worth seeing a few mortgage brokers to see who really can get the best deal?

I would be trying to get the best broker rather than the best deal. This can be tough - I am on my fourth.

Maybe I am too intolerant.

 

[grossreal]

hi Jodie701
simple answer is yes to your question
there is not one broker that I know that knows all the lenders.
so you go with the broker that you feel confortable with that can do the deal.
and for me a broker is like ny business or group some are good and some are shocking.
and you don't know which is which until you run a deal with them.
so for me probably not the place to say it but I don't go with one broker and the brokers that I deal with understand that as I explain that at the start.
the one thing you must avoid like the death is mandating two brokers on the same deal.
one it gets you in hot water with them and the other is that most lenders alot the deal to the first in best dressed and if the second guy comes in with the same deal it causes problem for the deal.
so it a kiss principle check out the broker talk to him/her and if possible a couple of there clients(if they let you) and then do a list of the ones you are going to run with and ansk them which lenders they are going to submit it to 1 or 2
and then do the same to the others and then you will have alist of who is going to who and on what grounds.
similar to a scatter gun effect.
if the broker pulls off the deal then he/she gets first bite at the next deal and so on.
add ... as needed running late

 

[Rockstar]

and you don't know which is which until you run a deal with them.

This is why I have been through a few.

If I had my time again I would choose one of the respected regular brokers posting here on SS. Otherwise get a recommendation from a successful investor .

 

[Jodie701]

Thanks for all the responses.

 

[Peter_Tersteeg]

I believe that the two most important things in a relationship with a broker is appropriate advice and trust. The advice part is obvious and others have already discussed it. Brokers collect a lot of very personal information and have a significant amount of control over your financial wellbeing, so if you feel uncomfortable in any way with them, walk away.

I've got no problem with people shopping around until they've found the right person for the job, but these days brokers are getting very reluctant to submit applications that won't settle due to new commission policies from the lenders.

Also in mind though that if you're looking at a larger strategy than just one property, if you've got two brokers working independently one may inadvertently mess things up for the next deal because the broker only saw the immediate deal in front of them.

Finance can be like a game of chess. Thinking a few moves ahead and making a small sacrifice now often gives you a better overall result.

 

[GoAnna!]

I have two brokers because each has their own specialty and each have access to different loans. My current deal I am doing direct due to referral from this forum. Thanks! I would not have each working on the same deal at the same time. I am very open with both and they know what I am working towards and if they think they can do a better deal than the other then they would put it forward. Rates are a small part of my decision making.

Loyalty and a broker having a full understanding of your situation is great as long as it doesn't limit your access to products.

 

[Stella]

Otherwise get a recommendation from a successful investor .

The key to that is successful - we went with a broker recommended by friends who had purchased 3 or 4 IP's with the help of this broker. Now that tax time has rolled around we have been slapped on the wrist by the accountant (one recommended from SS regulars) for the way the broker set up the loans and have now made a couple of changes to avoid the possible wrath of the ATO. And he would only go with one bank because he 'knew the product' -should have walked away then but was still learning.

Turns out friends have been ok because they were buying in a rising market & using rapidly growing equity the same way the broker expected us to do it a much slower market.

Have learnt to get recomendations from experienced AND succesful investors.

Cheers
Stella

 

[stargazer]

Hi Stella

Brokers are NOT accountants.

I always take whatever my broker puts to me to my accountant. This is no.1 rule for me.

Cheers
BC

 

[Stella]

Hi Stella

Brokers are NOT accountants.

I always take whatever my broker puts to me to my accountant. This is no.1 rule for me.

Cheers
BC

Is now #1 rule here too.
Have followed what accountant said - he carries more bite than the broker. Would rather lose a bit of questiongly deductible interest than incur the wrather of the ATO & lose much more than a bit of interest - especially as I work in a fraud related capacity.....rather safe than sorry.

Cheers
Stella

 

[Rolf Latham]

As many post will show here too though !

Many Many Accountants are not investors nor brokers.

I think the best example I can offer that people may relate to is

Assume your brother in law is starting a new business.

BIL does a survey of his friends and relos, all non business owners and invariably they all reckon its a bad idea, risk and all that stuff..........yet they have no have no real personal experience.

What is the value of the advice ?

Ta
rolf

 

[MIZBUF]

Thank you all for the forgoing contributions I wonder if any forum member would be able to recommend a m.b easily accesible from Sydney CBD to advise my son. He has fully paid off his PPoR , an inner city apartment . He is now ready to upgrade to a larger PPor. He wants to retain the present apartment as an investment property. I am aware of the difficulty- the INTENT of the loan mut be for investment purposes etc. He needs help with the structure of his loan and to, naturally, maximise tax deuctions as a self employed professional (his profession does not permit incorporation) Any suggestions gratefully received or please P.E.M me

 

[Stella]

As many post will show here too though !

Many Many Accountants are not investors nor brokers.

I think the best example I can offer that people may relate to is

Assume your brother in law is starting a new business.

BIL does a survey of his friends and relos, all non business owners and invariably they all reckon its a bad idea, risk and all that stuff..........yet they have no have no real personal experience.

What is the value of the advice ?

Ta
rolf

I think that sums it up nicely - they should 'complement' each other - be part of a team - all providing advice that adds together to best suit the needs of the client.

Cheers
Stella

 

[triton07]

My first loan was direct deal with a major lender (no broker), which worked out to be a very smooth transaction from start to settlement.

Then next purchase was using a broker with a hard time at settlement because of stuff up from broker.

Third purchase again with broker (different broker) & once again same thing stuff up with loan & nearly lost the contract at settlement.

I just find that there are allot of MB's don't have the knowledge in the finance industry nor do they know all available loans & they only go by what their software result on PC tells them for the best suitable loan package. There are allot of website's that have these calculations & will give you an option for a suitable loan.

This time will choose one major lender & deal direct with them. All information regards interest rates, loan fee's, etc, can be access on the internet, like I said, there are websites that give you comparisons on a selection of loans that suits your criteria.



Cheers
George

 

[Rolf Latham]

Hiya George

Brokers that primarily use Software to derive a product for a "client stated" need arent brokers.

They are at best " checkout operators"...................Lender Specific software is useful for making sure you pre qualify your client properly, thats about it.

Most of the multi lender broker platforms AND lender direct and public net based comparison systems ( NOTE sales portals) are very very limited in their true applications.

One of the most dangerous thing in middle to longer term for borrowers is thinking they "know" , when in fact they dont know, what they dont know. Sounds dumb, but its one of the most valuable lessons in life I have learnt.

If you have ooodles of equity and serviceability, practically any lender and/or order of events is ok.

If you are like most where you need to meet a balance between what the client "thinks they want" , what resources they bring to the table, what they can have, and how this works with the various scenarios, makes for interesting very fuzzy logic with so much "soft" data that no software meets the task.

However, for various valid reasons around 30 % of people will ALWAYS go to a lender direct and thats ok too, one cant be all things to all people.

ta
rolf