Mortgage Choice Brokers

[Qlds007]

Hi Mel

One of the benefits of using a Mortgage Broker will be the way in whch he or she structures the loan rather than just suggesting a particular product as a Bank would do.

Flexiblity is the key to a home loan these days as circumstances change and you dont want to be limited or tied in to a particular product.

Down the track you may wish to purchase an investment property or even turn your current property from a PPOR into an IP.

Remember your Bank manager will have no desire to ensure that our loan is flexible and suitable for your purposes only that he locks you up so that you are unable to leave.

He / she also maybe paid a commission from his employer for arranging your loan and therefore is also likely to be pushing an associated insurance product.

 

[Casserole Dish]

Don't be shy Melinda! Welcome... as you can see I have been asking away and have received some very helpful answers . The search function is good too but dosen't always relate to what you specifically want to know IYKWIM.

Anyway, another question going on from what Melinda has asked... is there a chance that the bank will be charging at a higher rate because they have to cover what they have given the broker?

 

[Rolf Latham]

Hiya Dish

fair question.

In general........no.

Broker and direct rate and costs are generally the same...........

Sometimes either can be marginally better or worse depending on the particular circumstance.

A lender has negligible marketing costs for a broker introed loan.

ta
rolf

 

[Peter_Tersteeg]

What would be the benefit of going to a mortgage broker over a bank directly - my situation is safe job with years of employment history, decent deposit, looking to borrow only 200,000?

As many brokers get commissions would they not try to steer me into a product which made them more money?

Is it usual to charge an annual fee for a homeloan?

Hi Mel,

To answer the questions in reverse...

Some loans attract an annual fee, these tend to be the 'professional' packages. They can work very well depending on a few facts such as the loan amount and the mix of products and features you might required. Other loans may have a monthly fee or no ongoing fees at all.

Yes, brokers are usually paid commissions and the commissions do vary for a number of reasons. Brokers should disclose the commissions they're paid by the lender and be able to compare them to other lenders available. It's usually fairly simple for a broker to justify one recommendation over another if the broker is truly working in your interests.

Mid last year my business introduced a guarantee to ensure we do what's in the best interests of our clients. Amongst other things, it's been very useful for making sure we avoid the temptation of a bad recommendation for a higher commission.

Your financial situation (at the briefest of glances) looks quite positive. I'm sure many lenders would be happy to lend you money. The advantage of a mortgage broker is you've got access to more choices than what a single bank can offer. Many brokers also offer additional resources such as Residex or RP Data property reports which help you pay the right price for a property. I'd also suggest that every broker posting on this forum would be more savvy about investment property than the average lending manager in a bank branch.

 

[Buzz]

Hi, is any of the mortgage brokers in this forum from Melbourne east or north east ?

Thyechan another vote of confidence in Peter T ( PT Bear) based in Melbourne. He is use to dealing with investors and hence can assist with structuring your loan to reflect your current needs and future aspirations.

PS I know this post is about Mortgage Choice brokers - just to clarify Investors Choice Mortgages is an independent company with no affiliation with MC. Not that there is anything wrong with them ( sic Seinfield)

All the best with your enquiries
Jane

 

[Les]

I'd also suggest that every broker posting on this forum would be more savvy about investment property than the average lending manager in a bank branch.

Game, set and match !!!

Ain't that the truth.....

Regards,

 

[familyman]

I remember a few years ago, there was a MB saying they were funded by government (or something similar to that) - and that they had no preference to any particular lender. In their TV ads they also said they had access to hundreds of lenders (not just a filtered selection like other MBs).

I used to think they were Mortgage Choice... But reading here now, I don't think so (because of the talk about commission).

I'm in Newcastle - and I think they used to advertise on at least one billboard too.

Does anyone have any idea the MB I'm talking about?

 

[Peter_Tersteeg]

I remember a few years ago, there was a MB saying they were funded by government (or something similar to that) - and that they had no preference to any particular lender. In their TV ads they also said they had access to hundreds of lenders (not just a filtered selection like other MBs).

I don't think any broker can or ever has been able to make that claim. Certainly not under a lender pays all commissions model. Most brokers deal with somewhere between 20 and 40 lenders, or so they'll claim.

The truth is in the current credit market, most brokers are probably dealing with less than 10 lenders, possibly as low as 5 on a regular basis. This is a result of working with lenders within the brokers niche market, and other lenders imply don't operate in that niche or aren't competitive.

 

[barnes]

I like the way my mortgage broker works, he is from Mortgage choice in Adelaide.

 

[tsunami]

Mortgage Choice or Wizard?

I thought it would be a good idea to write of my experience with Mortgage Choice. I had already got approved for bank finance but some members here had recommended I also look into a mortgage broker. So about a month ago I decided to take a walk in my local area to see what options are available with several of the competing mortgage companies. Wizard, Mortgage Choice and several others were only a minutes walk from where I lived so I gathered a few documents together and decided to head out on a bright sunny day in Bondi Junction.

I decided to give Mortgage Choice in Bondi Junction a go first so I walked up the stairs and then met the man at reception. He asked why I was there and if I had an appointment. I told him my situation briefly and after around 5 minutes the fair headed woman I could see in her cubicle came over to meet me. We then proceeded to discuss my situation in her office/cubicle. I told her that I had already been approved for a small loan on home but I decided to not buy it in the end and was now looking at other options with the possibility of applying for a larger loan. I told her I was self employed etc and briefly showed her some of my documents. It was only about 3-4 minutes and she then told me she would ask around but seemed very hesitant and uninterested. It seemed she became uninterested when I had told her about the first home I was going to buy which was way out in the country and very cheap. I think she was confused and not listening that well and maybe misunderstood what I wanted.

So she told me she would get back to me tomorrow after she asked around. She didn't get many details off me but just scribbled a coupled of figures down and my phone number. It seemed very unprofessional and she seemed to have much more important things on her mind (probably closing deals for million dollar properties etc)...

So I lost a bit of interest after that and never bothered to go and talk to the other mortgage companies that day. I went home and the next day I waiting for her to call me but the call never came, either the next day or the following day but at the end of the week I finally got a call, not from her of course but from the receptionist to say that they couldn't do anything for me and I should stick with my current bank and the loan I originally applied for.

I couldn't believe how deplorable the service is at Mortgage Choice in Bondi Junction and would never ever use them or recommend them to anyone. I would hate to think anyone I know would go through the same treatment I got from this unprofessional outfit.

Now on the contrast I decided to give Wizard in the city a go after that and wow what a total difference. I was treated with respect and dignity. I was told that they would apply for a loan at the Commonwealth bank for me since I was self employed and only had positive income for 18 months. They thought I had good records and documentation along with my high deposit to apply for a loan of around $350,000 which was a lot more than I thought I would get. My agent clearly told me all the documents I needed to send to them, including passport, bank statements etc so I emailed them all to him. He was always professional and very helpful. I met him in the city and he even took me into meet the bank agents to discuss bank options as I was thinking of setting up accounts with Comm bank if I was approved for my loan.

After around 10 days my agent came back to me and told me my loan was approved and congratulation's.

The difference between Mortgage Choice in Bondi Junction and Wizard in the city was like night and day. That's my experience!

 

[Rolf Latham]

Hiya

Id have a stab and say you have discovered that the BRAND doesnt matter.

You dont deal with a BRAND, but with a person and have an emotional interaction with them

As I always say, it depends on the person, and its NOT always about knowledge, but primarily about attitude and people skills.

When employing people or hunting for my next business partner I dont look for Aptitude, but attitude, because all the aptitude in the world wont make up for a sad attitude.

Aptitude may be future potential, Attitide is here and NOW.

ta
rolf