Dealing with Bank vs using Broker

[ganadara]

Hi,

I just wonder that which way is good for me to get better discounting rate?

Because I asked my broker to get increasing discounted rate when I get a new loan, but he said it cannot be done as it's not allowed for exisitng ones, he said only the new loan can get a better discounted rate.
But as you know in this forum, it is possible when I deal with Bank directly.

Is there any disadvantage to use a mortgage broker for now and future?

Thanks.

 

[Rixter]

Maybe time for you to find yourself a more IP savvy mortgage broker.

A MB has access to lots of different banks / lenders products & services. Your MB will advise you which ones best suit your situation.

Dealing directly with a bank/lender you will have access only to their products and services which they will try sell you.

 

[Aaron_C]

ganadara,

It's not always about the 'best rate' or the 'best discount'. A broker is there to give you sound advice on how to structure your loans, and provide you with a product that works for you. In most cases, this is not the 'cheapest'.

 

[ganadara]

Yes, I know. And I hope getting those services and updates.
But usually they are not contacting me again after getting the loan. Maybe they have too many client to contact, but in my point of view, if the broker is not updating me with latest, there is no reason to use the broker if the broker cannot get a better deal.(at least same as other people who had better deal with same amount of loan)

Usually they are only transferring my documents to the bank if I already selected which loan I want. And then finish!

So that's why my the only concern is who can get better deal from the bank.

Thanks.

 

[Aaron_C]

So you're saying you want periodic updates from the broker? Usually your broker will tell you about the latest products/rates on a need-to-know basis - since you only need to know when you actually are applying for finance. Otherwise it's a bit pointless..

 

[ganadara]

Well, I already know the latest products/rates by myself when I need a new loan.
And I already selected one of them before going to the broker, then what service I can expect from the broker except getting better rate deal?

What kind of service I can expect from the broker than the bank except the rate deal?

Thanks.

 

[Aaron_C]

Because branch staff don't know how to give proper advice on your loan....Some things that branch staff do without you knowing:

a) Cross collateralising
b) Giving you redraw instead of an offset account

Many a client has come to me after having these things slipped under their nose by a bank. And some of these things are hard to reverse - better get it right the first time.

 

[Rolf Latham]

Carrying on from Aarons reply.

rate is but one thing, just like price is only one issue with a car.


there are times where you are better served going lender direct.

Often though for a borrower looking to maximise options, structures and get a full view ACROSS a portfolio and take a global view, its hard to beat an independent and experienced broker vs a mono product sales person......

You dont know what you dont know

Where we usually come on is where someone doesnt recognise they dont know what they dont know and have made life changing financial decisions based on that flawed information.

I prefer to get to them before the tears ..................

ta
rolf

 

[Peter_Tersteeg]

What sort of updates do you actually want from your broker? If you want to know who's got the cheapest rates from one day to the next, I doubt anyone will give you that. I can figure out who's got the cheapest rates today, but there's a good chance that someone else will be 0.001% cheaper tomorrow. I can assure you that your bank will never give you this sort of information.

A good broker is more likely to help you with lending as part of an ongoing strategy. This will help you meet your longer term goals. If your broker can't do this sort of thing then you need to look for another broker. (Unfortnately most brokers I've met don't do much of a good job of this).

Most bankers will set up the loan in front of them but don't give a great deal of thought beyond this. There are a few exceptions to this but they're generally limited to the bank they work for (which often doesn't work for the borrower).

The advantage of a bank employee is they can usually have a more direct line into the credit assessment departments than brokers (although this is changing as well). Good brokers will be able to match the lender as well as the product to your needs. They also tend to be better at longer term strategic thinking.

 

[ganadara]

Yes, I agree you guys all.
I just want to meet the "good" broker. But it's really hard to meet the good broker maybe.

Thank you for all replies.
I may need to talk with my broker more.

 

[Jamie M]

Yes, I agree you guys all.
I just want to meet the "good" broker. But it's really hard to meet the good broker maybe.

You've just had some "great" brokers respond to your post.

Cheers

Jamie

 

[Bigtone]

I may need to talk with my broker more.

I am sure he will be thrilled by that prospect.

Personally I think YOU are better off dealing directly with a bank.

 

[Ms Jade]

ganadara, I think you'll find that working with any of the brokers who have replied to your post would be a good idea. Brokers will help with your short & long term strategy, know which banks to use when, know what type of application can be put to which bank, know what traps to look for with different banks & different loan types. That's because they are financing specialists and you are a specialist at whatever job it is that you do.

However, on the subject of getting banks to discount the rate on your loans you need to call the Retentions Team at the bank. No broker can negotiate rates on existing loans for all their customers.

 

[pennyk]

from your posts, it sounds like you are expecting to have regular changes made to your loan set ups to "chase" discounts.. i imagine this would end up being frustrating to either a bank or a broker. as others have said, banks are regularly making changes, but its not realistic to be able to take advantage of every special deal which comes along.
I would take a more longer term view.. get the loans set up well initially, and then wait until you next need finance to make changes.
I guess you need to clarify (and probably lower) your expectation of what services a broker is going to provide..

 

[sanjayag]

I was happy to use my broker for last 2 properties because he talks very good and he told me many stories about how the bank employees themselves do not know enough rules and procedures to pass a loan while he can tell them their rules and get the loans approved.
Later I came to know, he got me both the loans without discounts and got me variable rate loans while he could get me fixed rate loans during low rate period couple of yrs back. No offset accounts either.

 

[Marty McDonald]

Geez we still talking about this? Sometimes you can get a better deal going direct. So what, if you just want rate go direct. If you are not sure how to best structure your loans and to want stop yourself making mistakes talk to one of the brokers here. Not me though you sound like the type of client I don't want frankly.

 

[Mick C]

Hi,

I just wonder that which way is good for me to get better discounting rate?

Because I asked my broker to get increasing discounted rate when I get a new loan, but he said it cannot be done as it's not allowed for exisitng ones, he said only the new loan can get a better discounted rate.
But as you know in this forum, it is possible when I deal with Bank directly.

Is there any disadvantage to use a mortgage broker for now and future?

Thanks.

Going with a broker or the bank direct is a personal choice, it depends on;


1. Trust - do you trust the broker, as he/she will be collecting personal information

2. Switched on financially - Do you know what your doing regarding the finance, settlement, legal, loan structure, investing, budgeting, goal setting and some basic tax knowledge

3. Time- Do you have the time to do all the research on your own?

4. information- Are you the type of person who is good at breaking down the information presented, and be able to analysis and plan the loan according to the; bank's policy, features and overall cost to suit your current and future needs.



ganadara - If you did go with the bank directly- whats the chances they will send you regular updates on what you need ...i dont know abt you but i been with NAB and CBA for 7 years and i haven't received any "loan updates" ??? Maybe it's in my spam folder ...who knows.

Having said that, beside our company's Bi-monthly newsletter and daily facebook updates- i would send out a personalized loan update once a year...but def not on a weekly OR monthly basis unless the client ask me to

Regards
Michael

 

[Spectre]

I had a client a few years ago bail me up about a fixed vs variable issue.

When we took the loan out variables were around 6% and he sent me this scathing email about how rates were going up and he has to kick in more money as the rent hadnt increased and he should have had a fixed rate.

Went back and looked at fixed rates when he took out the loan and mentioned that if he fixed from day 1 he'd be at 7.5% so he was actually ahead.

If all your broker is what I term a set and forget broker then find someone else

 

[MC1]

Geez we still talking about this? Sometimes you can get a better deal going direct. So what, if you just want rate go direct. If you are not sure how to best structure your loans and to want stop yourself making mistakes talk to one of the brokers here. Not me though you sound like the type of client I don't want frankly.

haha .....my thoughts exactly. I'd be directing this guy to the closest branch. The 0.2% trail wouldn't be worth the headaches

 

[Tillie]

Question to all brokers... It looks like that in the future banks are not going to follow RBA when they set their interest rates and I can see that rate negotiations maybe regularly with the banks becoming more important, if you do not want to pay too much interest. Do you see that in the future you will be refinancing, organising current loans and negotiatiang new deals for all of your clients in the regular bases (let's say twice a year?) , even if they do not 'buy' anything new or have any other reason to refinance than better deal (saving money).