Having more than one broker for the same property

Hi guys,

I've ended up in a situation where I have found another broker who has managed to offer me a better deal than my current broker.

My new broker is aware of the existing broker as i explained I was reluctant to divert course half way through settlement given progress made in addition to the work the broker had done for me to date.

I have ~3 weeks to settlement and due to some unforeseen delays my current progress with the original broker has taken longer than expected and If i were to take up the new offer I would probably be no worse off (in terms of timing).

Should i let my original broker know I'm likely going to go with someone else who can offer me this better package (my current broker cannot access this lender) and kill that process or get approvals from both (just in case either one falls through - unlikely risk given my finances are not an issue in this instance)?

A successful settlement is obviously the priority but i don't want to be a d**k either.

What would you do? Just in search of opinions.

 

Obviously I don't know your borrowing capacity or circumstances or anything so take this with a grain of salt. I do however have multiple properties and understand the importance of having an excellent broker on board to get to that point.

1) Don't try to 2 time them unless you want them both to tell you to get lost.

2) I also wouldn't look at this deal in isolation either. Ie a better deal might not be with a lender you'd go with if you're planning to buy more properties as you don't want to back yourself into a corner and not be able to buy the subsequent property. Think ahead like in Chess, always.

 

Good tip. I am leaning towards just having that conversation early on and explaining my situation to my current broker. No hard feelings that way.

In reality i'd have only had one broker to manage my financing anyway so seems a bit silly to have both running at the same thing.

 

The right thing to do is to make up your mind quickly which broker is going to be the most suitable moving forward and then let the other know so you don't waste any more of their time. You might also want to offer them compensation for their time and efforts. On average it costs most brokers at least $1k to get a loan approved.

 

First thing you need to ask yourself is do you trust your existing broker and will he/she help you in the future. This new broker will give you a better package but is the service/advise better than the existing broker? Most cases the delay usually isn't the brokers fault. The banks will delay your approval due to their workload. I know Suncorp right are taking almost 14 days to even pick up your file after lodgement.
Lodging 2 applications can have an effect on your credit score as well so you don't want to do that. The second bank you lodge with can see that you have a loan application pending with another bank and they will query it.
I think you should talk to your existing broker and see what they can do for you before you move on to someone else.

 

Why has it taken longer than expected, was this your fault or the broker?

 

No point chasing the lowest rate if nobody will give you the money

 

In current circumstances I would always have a plan B in place.



MTR

 

I think you'll find, time wise, that you're better off sticking with your current broker.

With just 3 weeks till settlement you'll be pushing it with a new application.