Doin my little bit for the brokers out there...

Discussion in 'Loans & Mortgage Brokers' started by BuyersAgent, 20th Feb, 2019.

Join Australia's most dynamic and respected property investment community
  1. BuyersAgent

    BuyersAgent Well-Known Member Business Member

    Joined:
    19th Jun, 2015
    Posts:
    1,032
    Location:
    Oz
    property_geek, tobe, MTR and 7 others like this.
  2. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    10,434
    Location:
    Sydney
    I like the new MFAA ads on TV. Simple logical message.
     
  3. JacM

    JacM VIC Buyer's Agent - Melbourne, Geelong, Ballarat Business Member

    Joined:
    12th Jul, 2015
    Posts:
    1,898
    Location:
    Melbourne, Australia
    What I fear most for buyers should brokers not exist is the consequence of applying direct to a bank and discovering they were not eligible with "that particular bank" and get a declined stamp on their credit files, oblivious to the fact this is very detrimental when they try another bank, and another after that. This can result in getting locked out of lending altogether for years (and not just for property but also buying a sofa on delayed payment, getting a phone plan etc).
     
    EN710, ellejay and BuyersAgent like this.
  4. BuyersAgent

    BuyersAgent Well-Known Member Business Member

    Joined:
    19th Jun, 2015
    Posts:
    1,032
    Location:
    Oz
    Agreed @JacM - if the brokers go we are back to the vibe of the 70's and 80's going cap in hand to a branch but without local branch manager discretion... 2019 lending rules and the resultant high percentage declines means any borrowers who want to shop around end up with a worse looking credit report.
     
  5. Anthony416

    Anthony416 Town Planner & Project Manager Business Member

    Joined:
    14th Dec, 2015
    Posts:
    362
    Location:
    Sydney
    This is an area I know nothing about but I am curious......if a borrower shops around themselves that can get a bad credit report however if they use a broker to make the inquiry they are protected by not having to give the banks their details?
     
  6. Zoolander

    Zoolander Well-Known Member

    Joined:
    15th Dec, 2016
    Posts:
    668
    Location:
    Sydney
    Brokers have banks’ serviceability calculators to do a soft check on whether the maths on an application will be approved or not.
     
  7. property_geek

    property_geek Well-Known Member

    Joined:
    31st Jul, 2015
    Posts:
    212
    Location:
    Australia
    Where can we get these serviceability calculators? Do banks provide them to public? It would save mortgage brokers a lot of time and efforts if customers can use same calculator at home and before approaching broker.
     
  8. Brady

    Brady Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,759
    Location:
    Adelaide, SA
    FYI CBA Bankers... have to complete a servicing calculator before proceeding to application. Common misconception that it's straight to application.
     
  9. Sackie

    Sackie Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    13,980
    Location:
    Bondiliciously Beachy
    If you have a good business relationship with a great broker they often can take your case straight to the top guy/gal to discuss whether it would be approved or not without having a single word documented .
     
    property_geek and Brady like this.
  10. Zoolander

    Zoolander Well-Known Member

    Joined:
    15th Dec, 2016
    Posts:
    668
    Location:
    Sydney
    I wish they shares this but I cant see it happening.
     
  11. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

    Joined:
    18th Jun, 2015
    Posts:
    5,014
    Location:
    Melbourne, Nationwide
    Which ones would you like? Happy to share where possible (most lenders provide an Excel worksheet, but a couple only have an online interface which can't be accessed without an account).

    I would suggest you don't rely on the results though. Experience tells me that most people won't enter the data in accordance with the banks actual policies. The means inaccurate results which are usually significantly more generous than what the bank would actually lend. In turn this leads to people spending more than they can actually afford.
     
    Sackie likes this.
  12. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

    Joined:
    18th Jun, 2015
    Posts:
    5,014
    Location:
    Melbourne, Nationwide
    Most brokers don't do credit checks at all unless there's a specific reason too. The credit check gets done by the selected lender when the application is lodged.
     
    JacM likes this.
  13. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    10,434
    Location:
    Sydney
    Brokers are more than the calculator. Its not uncommon for clients to advise their income is $120K and then the payslips show its $110K + some fringe benefits or salary sacrifice etc. Many clients will include income and then the broker learns the work is new and its casual so lenders may not even accept it under policies. Other problem areas can be bonuses, self employed etc. Trust income can also be problematic.

    And the expenses for servicing needs some knowledge of what the lenders will chew up.

    And I'm not a broker. I work alongside one and deal with a fair few.
     
    tobe likes this.