Should I still use the M/Broker ???

[Ross]

Question for the Mortgage Brokers, scenario is:

- Two IPs put in HDT/financed via Broker through St George-Portfolio loan;
- Looking to transfer existing PPOR into HDT and rent out;

Currently St G have all 3 properties as security so LVR not an issue as no debt on PPOR however if we re-finance and pull out all the equity, LVR could go up to around 90% as I dont want to give any further property security:
IP1 Loan $400k, Mkt Value approx $450k
IP2 Loan $500k, Mkt Value approx $575k
IP3 Loan $500k, Mkt Value approx $500k (former PPOR)
StG Margin Loan $100k, Mkt Value $150k (Navra fund, could pay down further if STG want more security)

Combined salaries with wife (both accountants) is c$190k, she's part time now.
My question is should I go direct to St George or still go via the broker and how feasible does the 90% LVR sound ?

Ross

 

[Peter_Tersteeg]

At this point your broker probably knows more about you and your goals than a bank employee would. If they've set up the HDT structures properly, I guarantee they would be the better choice for you right now.

If you're happy with your broker, why not use them?

 

[Simon]

Did your broker assist you with developing this strategy?

Do you save any money, time or effort by going direct?

Are you unhappy with the broker?

Is there a reason why he doesn't deserve to get paid?

Answer these in your mind and the right thing to do will be clearer.

 

[Ross]

Thanks PT & Simon.

The strategy is my doing, my broker had experience with HDTs, hence why I used her.
Im happy with her just thought that now I have both the HDT and portfolio loan up and running, dealing direct with STG may be more feasible.
Agree though, she does deserve the continued business and hopefully I'll more than recoup her costs (indirectly through reduced rate / fees etc) Im sure she'll be able to stretch my LVR further than I can.

Cheers
Ross

 

[Peter_Tersteeg]

Ross, you've left me wondering what you mean by 'recoup her costs'? Did she charge you an additional brokerage fee?

St George has fairly clear guidelines on pricing. Your broker should be able get the same rates as a branch can.

Funny story:
I recently had a client who I was going to put with lender A for his first home. He went into the branch to get the deposit and they tried to sign him up for a loan on the spot. He said he didn't want to because he was getting great advice and help for buying the house from me.

The offered him an additional discount on the published rates which I was getting him. I got the name of the branch and sales person and the lenders broker section matched the rate.

He was already satisfied with what I was getting for him, but the branches aggressive sales tactics simply meant he got a better rate and they still didn't the deal. It was a great result for the client though.

Another reason why it costs banks less to use brokers than branches. St George wasn't the bank in question, but your broker should be able to negotiate a rate match with their own branch.