That's the main issue. Unfortunately even if you're a fantastic banker, you're limited to the products offered within your brand. When it comes to structured investment finance, you inevitably utilise multiple lenders in a very *specific* order, which cannot be achieved direct to the lender.
Mortgage Broker recommendation
- Thread starter new2this
- Start date
That's the main issue. Unfortunately even if you're a fantastic banker, you're limited to the products offered within your brand. When it comes to structured investment finance, you inevitably utilise multiple lenders in a very *specific* order, which cannot be achieved direct to the lender.
Agree with this.
Sticking to one bank can only take you so far. For the most part, banks apply large interest sensititivity buffers to mortgages you already hold with them. Whereas they do not apply buffers (or apply lower buffers) to mortgages you hold with other institutions.
Imagine your paying 7-8% on your mortgages rather than <5%. How much money do you think you could borrow?
If your debts with one bank, that bank will assess you at that 7-8% mark. So even though you can afford to repay your debt, the bank youve always gone to may assess that you wont.
Hence brokers work on a structured investment financing model that Corey mentioned. By ordering lenders appropraitely and switching lenders when necessary, an investor can borrow significantly more than sticking to one bank.
Redom
That is very comforting to know. We will have to take baby steps as this is a completely new venture
Thoroughly recommend Aaron C from Ace Capital. Melbourne based broker organised finance for a new PPOR + assisted with redraw on 2 other IPs and I live in Far North QLD, so everything was done via email and a few phone calls. Superman fast in getting back to me from emails and phone calls. Very happy here.
Can't say I agree.
Hey new2this,
You'll find most of the brokers here these days have their client base spread across the country (and even expats overseas).
So you wouldn't recommend using a Mortgage Broker local to the area that you are trying to buy in? Like using a Ballarat broker for a Ballarat purchase, or a broker from Outer Melbourne East for Inner West Melbourne?
Hiya
Just use a broker you have trust in - and don't stress about the location of the purchase (that part isn't important - loans can be written from anywhere).
Cheers
Jamie
Obtaining finance is very similar across all states, so theres no need to find local brokers for each purchase. Unlike legals, where some states have specific requirements (qld for example is slightly different to NSW), finance is much more transferable from state to state. E.g. Commbank, NAB, Westpac, etc operate all across Australia and brokers around the country have similar access to the same banks.
If your looking for someone you can meet face to face and interact with, then someone close by is probably ideal. If your happy for online/phone contact, any broker in the country will do.
Generally swapping brokers for each purpose comes at a time/inconvenience cost. Quality brokers would also generally plan around your goals (not just for the purchase ahead, but for the next 3-5-10 years).
Personal view is to find a broker who does you a great job, that your happy with (perhaps shopping around initially to find this person) and then build a long term relationship with them.
I may be biased though, given my role. Although i'd guess most of the good brokers on the forums have a large majority of their clients being existing ones, or ones referred to from existing clients.
I can see that there is some advantage to using a broker with local area knowledge, but in truth most brokers you meet probably won't spend time with you impart this anyway. The advantage isn't that great and it will be lost in most cases.
Much more important is you have a broker that understands the path your on and is working with you in a consistent manner towards that goal. You're highly unlikely to employ an effective long term lending strategy if you switch brokers for each purchase.
BTW, I was raised in Ballarat, I just spent the day there with my family. I spend 10 years in living in the inner city of Melbourne including the inner west. I've now lived in the outer East for the last 10 years. Just say'n.
Right now I'd suggest Ballarat is probably the best pick of the region but most people I'm speaking to are buying interstate.
While its useful ( recently did a drive by for a client to check M1 noise for a BA sourced property, such focus crosses the specialities brokers may or may not have.
Aside from obvious things such as the above ( which are still subjective) I cant see the benefit of such a strategy. choosing a broker/banker that can define and fulfil your strategy would be more important in my experience
ta
rolf
