Mortgage Brokers
- Thread starter stumpie
- Start date
When I first started back in 2001 it was direct bank lending, brokers weren't really something that were as visible as they are now.
I had a few years off investing while I bought a PPOR and started a business.
Post GFC and self employed, RAMS were one of the only lenders who would touch me so I bought a bunch with them. When I hit my servicing limit with them, they did not seem that interested in doing loans not funded by their parent Westpac, so I moved to a broker from the forums.
He did a few loans and then disappeared and did not return calls or emails, so I changed again to a new broker (CJay) who is excellent and I expect to deal with for years to come. One day I might even get my trails refunded
I had a few years off investing while I bought a PPOR and started a business.
Post GFC and self employed, RAMS were one of the only lenders who would touch me so I bought a bunch with them. When I hit my servicing limit with them, they did not seem that interested in doing loans not funded by their parent Westpac, so I moved to a broker from the forums.
He did a few loans and then disappeared and did not return calls or emails, so I changed again to a new broker (CJay) who is excellent and I expect to deal with for years to come. One day I might even get my trails refunded
I think its like any profession really, there are some good eggs and some bad ones. As a customer, i think it makes sense to keep moving until you've found a good broker.
There are no real costs to changing (apart from some inconvenience cost). However, given the broker/client relationship is often built on trust, its common for people to stick with one broker and build a relationship once that broker has helped them out.
Realistically, those that do a good job have strong client retention. After a few years in the industry, some brokers may be able to earn a living just serving their existing client base + their referrals.
There are no real costs to changing (apart from some inconvenience cost). However, given the broker/client relationship is often built on trust, its common for people to stick with one broker and build a relationship once that broker has helped them out.
Realistically, those that do a good job have strong client retention. After a few years in the industry, some brokers may be able to earn a living just serving their existing client base + their referrals.
I'm not saying i've got a bad broker but rather wondering if people predominantly will use just 1 across all their deals.
And if there are people that use more than 1 what were their motivation and reasons.
I can from my perspective as a broker and also a client.
Over the years I've had quite a few new clients come to me after using other brokers - the reason is usually due to their current broker not having a sound understanding of structuring deals for investors. This usually isn't apparent initially - it's only when the client wants to access equity to purchase an IP do they realise they might be better seeking a second opinion.
I was in this exact same position years back when I first started investing. I used a franchise broker for my PPOR - and a year later went back to talk about buying an IP. The structure he proposed didn't seem right - so I done some DD and ended up on good old SS where I found an outstanding broker who assisted with another 4 purchases and became a friend/business mentor along the way.
Personally, I think if you're onto a good broker who you trust then it's worthwhile sticking with them - because there are some mediocre/poor performers out there due to the ease of entry into the industry.
Cheers
Jamie
Over the years I've had quite a few new clients come to me after using other brokers - the reason is usually due to their current broker not having a sound understanding of structuring deals for investors. This usually isn't apparent initially - it's only when the client wants to access equity to purchase an IP do they realise they might be better seeking a second opinion.
I was in this exact same position years back when I first started investing. I used a franchise broker for my PPOR - and a year later went back to talk about buying an IP. The structure he proposed didn't seem right - so I done some DD and ended up on good old SS where I found an outstanding broker who assisted with another 4 purchases and became a friend/business mentor along the way.
Personally, I think if you're onto a good broker who you trust then it's worthwhile sticking with them - because there are some mediocre/poor performers out there due to the ease of entry into the industry.
Cheers
Jamie
If your existing broker is doing a good job, you'd be mad to go with a second broker. All this does is make the two work against each other. You'll have conflicting strategies and approaches to finance, chances are that they'll actually get in each others way and the borrower will be worse off for the experience.
Some of my clients have rather complex lending scenarios. The worst thing they could do is go to another broker and do things that I'm not aware of. In some cases an unanticipated credit inquiry or two can completely mess things up on the next application.
Some of my clients have rather complex lending scenarios. The worst thing they could do is go to another broker and do things that I'm not aware of. In some cases an unanticipated credit inquiry or two can completely mess things up on the next application.
It's the old adage " too many cooks "
