Issues with broker

Hi guys,

I wanted to let you know my current dilemma and see what options you think I should consider.

Currently have $2mil+ loans via one broker.
Relationship is deteriorating. They're not delivering what I need in a timely fashion. Perhaps they've become complacent? The broker I used to deal with personally has left. I have Joe blow now looking after my account.
I've asked them to do valuations for my properties which have taken 3 weeks now and not done. I'm getting excuses. Property agent this, not in contact, blah blah, not our fault. I've asked them to see if they can get a further interest rate discount, which they've ignored twice (literally didn't acknowledge my email whatsoever).

When I told them I am getting another loan elsewhere, instead of addressing the outstanding things that need to be done, they're trying to keep my business for the next loan. Ie. Not addressing my current needs.

Their main concern is to keep my business.

Should I:
1. Stay with them and get another loan with them?
2. Find a new broker and move all my loans to the new broker (whilst keeping the actual loans untouched with the bank).
Is that possible? I refinanced the loans 1 year ago with the current broker but I don't have any loyalty to them. I'm considering moving on. Will I be breaking contract with the agency by switching brokers?
 
Your location is Enfield - is that Enfield in SA or is there another suburb of the same name elsewhere?

Corey Batt from these forums is in Adelaide and is highly regarded for financing investors portfolios. You should get a 2nd opinion to see what other avenues you might have.
 
Find your old broker or a new one. Don't stick with someone holding you back.

Current broker will get trailing commission from current loans. New broker from new loans and refinances.
 
As others have said, get a new broker.

No need to refinance all the new loans away to your new broker - if/when the loans need to be refinanced or changed then move them to your new broker.

Any broker who tries to automatically refinance all your loans to them without showing you how/why this will benefit you will likely end up costing you money.
 
I've asked them to see if they can get a further interest rate discount, which they've ignored twice (literally didn't acknowledge my email whatsoever).
Not acknowledging an email is very poor service, even if the answer is to approach the lender yourself. The reason I mention that is a strategy is that I went through my loans with my broker and he advised that he has not been able to get as good interest rate discounts as a broker as inviduals approaching this particular lender. He didn't just fob me off though. He did explain how it all worked. Anyway, I took his advice and must have said all the right things because they dropped my rate from 5.20% to 4.35%. Very good deal and I was able to leverage that because of another loan my broker got me with another lender at 4.39%.

Anyway, you need to be happy with your broker, so I suggest you get a new one.
 
I have very little tolerance...if a broker does not perform move on....and get someone who will do the job.

I would find where the other bloke went and use him again....no need to deal with the current clowns.
 
You don't owe the broker anything, they did work for you in getting the loans in the first place and were paid a commission then, and they get paid a commission now to service the loan as a first port of call instead of the bank.

If they're not providing you service then there's nothing to stop you taking your future lending business elsewhere.
 
Great advice guys.
Thanks.

I'm certain about going to a new broker for a new loan.
I am interested in moving all the loans as I don't even want to deal with them now.
 
You don't need to move the loans - if anything needs doing just ask your new broker to help. You can completely cut ties with the old firm without moving loans. Your new broker will often pick up the trail for their trouble.

Of course if moving is of financial benefit to you, go for your life but don't feel like you have to.
 
You don't need to move the loans - if anything needs doing just ask your new broker to help. You can completely cut ties with the old firm without moving loans. Your new broker will often pick up the trail for their trouble.

Of course if moving is of financial benefit to you, go for your life but don't feel like you have to.


Thanks Jess!
 
Ditto....also given the current climate of bank qualifying on investment loans...it might be harder to move....

You don't need to move the loans - if anything needs doing just ask your new broker to help. You can completely cut ties with the old firm without moving loans. Your new broker will often pick up the trail for their trouble.

Of course if moving is of financial benefit to you, go for your life but don't feel like you have to.
 
Not acknowledging an email is very poor service, even if the answer is to approach the lender yourself.

Just out of curiosity, would a broker be annoyed if you bi-passed them and went straight to the bank?

Under what circumstances can brokers lose their trailing commission?
 
Just out of curiosity, would a broker be annoyed if you bi-passed them and went straight to the bank?

Under what circumstances can brokers lose their trailing commission?

My guess is anything that initiates a refinance, such as an IO extension. But switching from variable to fixed should be ok. I could be wrong though. I'd like to know too as I don't like to trouble my broker for small stuff but at the same time I don't want to risk him losing his trail as he's a good friend.
 
Just out of curiosity, would a broker be annoyed if you bi-passed them and went straight to the bank?

Under what circumstances can brokers lose their trailing commission?

It can be really annoying when clients go direct to the bank - mostly b/c bank staff can undo a lot of our work by giving conflicting advice or implementing clients instructions wrong. It can also be like chinese whispers, where a client has the right idea but communicates it slightly wrong and ends up with something less than ideal.

Trail will stop when the loan gets refinanced. I'd recommend talking to your broker first before going to the bank - I heard yesterday about a guy who went direct to the bank to refinance his large portfolio, and triggered his brokers claw-back. He refinanced it back to the original bank after ongoing drama with the lender - it cost him thousands. :eek:

Not something you'd want to do to your broker if they've done a good job for you - and depending what you've signed, you could be liable for the clawback yourself.
 
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Under what circumstances can brokers lose their trailing commission?

With the same lender usually only if there is a new loan account number created. This could be the result of internally refinancing such as splitting a loan into part variable part fixed. Or the lender directly increasing the loan and changing the loan account that way.

It's not meant to happen (ANZ excepted) if there is no real change to the loan security or amounts and can will be put back on the brokers book if they notice / see what's happened.
 
Easy enough to fix....you simply get the chimpanzee at the bank who did it to fix it! They should be trained to know about this....

Some brokers want only to write new loans....

Trail will stop when the loan gets refinanced. I'd recommend talking to your broker first before going to the bank for anything - I heard yesterday about a guy who went direct to the bank to do something for his large portfolio, and triggered his brokers claw-back. Not sure of the details but it cost him thousands. :eek:

Not something you'd want to do to your broker if they've done a good job for you - and depending what you've signed, you could be liable for the clawback yourself.
 
Hmmmm....another reason I don't use brokers who do this......my broker does not do this.

She makes a killing in trails though.....

I have signed the i am liable to pay the clawback on all my loans,i thought this was a given.They are usually in force for 18 months,which is fair enough IMHO.
 
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