FHB Broker & Convayancing recommendations

Hello all! New to the forum and total newbie at the property thing.

Basically my partner and I want to buy, and have decided probably going with a broker is best just to help navigate the purchace. But where to start? How do I know which broker is right for us? How do you compare brokers? What's the real difference between them all? I figured it's probably easiest to just ask if anyone has any recommendations, I've heard everyone on here is good but still not sure how to go about choosing one, is there like a list or something somewhere?

Any recommendations on Convayancing too would be amazing as I've read some people don't get charged to read contracts and some charge like 500 bucks to do this so there is obviously some variance.

I'm in Canberra, I know the broker doenst have to be here too but just to give an idea. We have decent deposit probably around 200k maybe slightly more. My partner is oposed to buying at auction but it seems that's how all the houses are sold these days.

Any good brokers out there keen to have a chat? Or anyone recently gone thru the process and have one that they really liked?

Just trying to get the ball rolling and not sure who to talk to to get it all happening!

Thanks in advance everyone!!! Much appreciate your time

 

While cost is important, dont choose just on cost. For conveyancing, a few hundred dollars difference is nothing in the long run.

For brokers, it would help if you decide on what you want and what your plans are, or at least keep an open mind.

Do you just want the lowest rate? Why? Are you willing to pay a little more if you get an offset account? Do you know what an offset account is and what the difference is between offset and redraw? Are you planning to upgrade / move in the future? Be realistic, don't say you will live in this forever just because that's what you feel.

You have a big deposit. Are you going to buy the max? Or if you are buying below your limit, do you understand the advantage of borrowing 80% LVR, or even more, and keep more in the offset?

Plans on refinancing later, using the money for shares or other investments?

Understand the buying process. What is the difference between auction, and not auction? There might be things you need to do differently.

 

There are plenty of great brokers on this site and for the most part service will be similar, some have access to different lenders than others and everyone runs their business slightly differently. I think I've seen someone Canberra based if you wanted to meet one face to face (not that it is required in the current environment). You can find info on brokers here in the business directory below:

Service Provider Directory

For your conveyencer you will want to use someone Canberra based; you may be able to get a recommendation from the forum or online as there is a clear service gap between good & bad operators

 

These are all questions I assumed would be discussed with a broker? We want the lowest rate for the obvious reason of paying the least interest,

 

What if the lowest rate has no features, and a slightly higher rate loan comes with an offset account?

Obvious is a dangerous word.

paying the least interest might be obvious, but upgrading 15 years later, when everything is paid off, and you cant deduct anything because you have to take out a new loan, is not so obvious.

 

If you ask the broker for the lowest rate, thats what theyll find for you.

if you know to say i want an offset even if its not the lowest rate, because i might move or upgrade in the future and keep this as an investment.....

 

Availability of broker is one factor to consider. Some brokers work 9-5 while others are happy to answer your call outside business hours. This doesn't mean 9-5 brokers are less efficient. Flexible brokers would suit clients who are busy at work during office hours.

If your loan scenario is straight forward you may go straight to online lenders if you are after lowest rate. You will have less chances of rejection(and a mark on your credit file) if you go via a broker though.

 

Oops I actually didn't mean to post that yet! We would probably go with an offset but still looking for the lowest rate with offset option. I imagine a broker would be best. But how do you decide on which one? Do people generally contact more than one broker and shop around? If so, do brokers charge upfront consult fees etc or does payment only come with the loan? Or do people generally just contact one broker and then look at the lenders for comparisons? Is there something specific I should be looking out for when choosing a broker? As were not well versed on property, we will almost definitely go with one. Just trying to figure out how people choose the one thats roght for them or is it just a bit of a lucky draw really?

We would be looking to buy within our means at around 70-75% LVR? First home but will likely buy another property later down the track and keep the first home as an investment. That's the optimistic plan at least.

 

That's super helpful thank you so much

 

You need a broker for sure - please get one from this forum. If you rock up to a bank or a broker who doesn't get investment lending, you WILL, with 100% certainty, be worse off over time.

As an example, if this house will become an INV, you won't use 70-75% LVR, (might even use LMI instead, believe it or not) and you will need an offset.

How you use your resources and manage your cash is incredibly important.