Join Australia's most dynamic and respected property investment community

Am I tied to the broker who got me the loan?

Discussion in 'Property Finance' started by CargoCult, 6th Jun, 2016.

Tags:
  1. CargoCult

    CargoCult Member

    Joined:
    26th Feb, 2016
    Posts:
    10
    Location:
    Melbourne
    When I go my IP loan about 2 years ago, the experience I had with my broker was not the best.
    I would now like to get a property revaluation and possibly top up the loan. I believe I need her for this.

    Alternatively, could any other broker help me with this, liaising with the bank, while someone else is actually earning trailing commissions, etc? Would there be any conflict?
     
  2. Terry_w

    Terry_w Well-Known Member Business Member

    Joined:
    18th Jun, 2015
    Posts:
    12,875
    Location:
    Remote
    yes, no conflict.
     
  3. Simon Moore

    Simon Moore Residential & Commercial Mortgage Broker Business Member

    Joined:
    4th Mar, 2016
    Posts:
    348
    Location:
    Level 6 250 Queen St Melbourne VIC 3000
    Nope, not tied down :) If you did go to a new broker and they put you with a different lender the old broker would probably get a 'claw back' (where they would repay the upfront commission) if it has been less than two years.

    If you went directly to the bank they might remove the old brokers trail commission because they touched the loan.

    Interesting you said the experience was not the best, what did she do that made you feel that way?
     
  4. Redom

    Redom Mortgage Broker Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    1,048
    Location:
    Sydney
    No you should be right - no conflict of interest.

    If you have a copy of your broker agreement, best to check to see if there's any claw back. Given it was 2 years ago, your likely past that point anyway.

    If there is a clawback, staying with the same bank should be OK and won't impact you as there shouldn't be a clawback involved in this. You can go to a new broker or the branch direct for this.

    Thanks,
    Redom
     
  5. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,773
    Location:
    Canberra, Brisbane and Sunshine Coast
    You're free to use whoever you like - whether it be a banker or broker.

    Some brokers charge a deferred fee if you close down the loan early (generally within the first two years). If that applies - you would have been issued a credit quote.

    Cheers

    Jamie
     
  6. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

    Joined:
    14th Jun, 2015
    Posts:
    2,910
    Location:
    Adelaide & Sydney
    Nope, I had a few loans done by a former Somersoft broker who disappeared due to ongoing criticism of his methods, and have had topups done by my new broker since with same lender.
     
    SOULFLY3 likes this.
  7. See Change

    See Change Timing Lord

    Joined:
    18th Jun, 2015
    Posts:
    2,509
    Location:
    Sydney
    We've used our latest broker to do stuff for us on a preexisting - other broker loan .

    Cliff
     
  8. Yson

    Yson Well-Known Member

    Joined:
    4th Jan, 2016
    Posts:
    265
    Location:
    Sydney
    interesting to see what bad experience you have?
     
  9. Jack Chen

    Jack Chen Well-Known Member Premium Member

    Joined:
    19th Jun, 2015
    Posts:
    363
    Location:
    Sydney
    Not OP but my broker wasn't willing to help me renegotiate interest rates for existing loans when I know other forum members are getting much much better deals.
     
    Dean Collins likes this.
  10. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,772
    Location:
    Melbourne, Nationwide
    I can't understand why a broker wouldn't do that for you? With most lenders, it's a fairly simple process, only requiring a few moments of work. It doesn't cost the broker anything (other than a few minutes) and it makes the client happy - and who doesn't want happy clients?

    Of course not all lenders will renegotiate, but if that's the case it's an opportunity for the broker to get more business from you if it's worthwhile refinancing.
     
  11. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

    Joined:
    18th Jun, 2015
    Posts:
    3,708
    Location:
    Perth WA