Just won auction last night - revaluating my broker

Good morning all,

So I was finally able to secure our first PPOR last night!

Thanks everyone for your assistance and advice on these forums thus far, they really helped us with the auction last night!

I've had a follow-up conversation with the broker in which I had been dealing with at Lendi. While it may be a small and honest mistake, he's missed the current stamp duty concessions in his estimates in Victoria, which has led me this morning to ask if he is the detail-orientated strategist you want on your side when it comes to a mortgage broker.

Am I overthinking it?

For the other mortgage brokers on the forum looking for business, I am happy to hear your thoughts and opinions on the below:

Details:
First Home, PPOR, 80%LVR on $680k.
Loan and property under my wife's name (I have other business interests that make a straight forward credit application a nightmare when you include me on the paperwork).

No debt. Current Gross income of $100k (excludes my income for serviceability).

Was considering variable before COVID - but these rates sure are a thought provoker in terms of fixing.

We estimate about $30-50k worth of work needs to be done in the next 5 years (restumping being the most part of those costs.). It could be that we end up extending or rebuilding on the land as the building is a bit on the smaller side on a slanted block of land.

We would need to consider family planning within the next 3 or so years.

 

If you're referring to the 25% stamp duty discount, this isn't appearing in any of the various calculators out there as yet, not even the Victorian Office of State Revenue, the authority that administers stamp duty in Victoria. I don't think the budget has been passed in Vic Parlament yet, so it's not technically active or available (although I'm sure it will be). You're asking the broker to quote you on a discount that they can't guarantee, nor is all the information actually available. Realistically the only info that's been released so far is a very vague press release.

Imagine if a broker did manually reduce 25% from their stamp duty estimate and the government resinded the offer, or if they calculate it incorrectly due to some loophole the government throws in. Would you expect the broker to compensate you? Better to quote the full amount and you get a nice bonus at settlement, rather than under quote.

The only real point that might be made is this hasn't been communicated to you. That's probably a harsh critism given the broker is probably prioretising so many other things in their thought processes and recommendations. It's not an easy job, there's a lot going on that the customer doesn't see and you've suggested that your situation is more complex than it appears. So to be fair, did you actually ask the broker about this?

 

Lendi are more 'transactional' than other independent brokers from what I've heard, less future planning, more so assist in what you need right now.
If you want to take advantage of low fixed rates and have some flexibility why not simply split the loan part variable and part fixed.

 

Brokers can't advise on stamp duty, so not a big deal. It is just an estimate
Your conveyancing lawyer will be the one to rely on.

 

The duty reduction may not be given initially and a later refund could be a issue. The state govt may also issue specific regulations the Commissioner can follow to temporarily defer a shortfall. OSR is generally obliged to follow law as it stands at the time of the dutiable event. Definately one for a solicitor, not a broker, as part of the conveyance journey. State Govt will communicate with them on any such issues as they are impacted with the difficulties

I understand that these measures (50 / 25% duty cut) will be implemented pursuant to a Treasurer's direction, which was given in accordance with the emergency tax relief powers contained in Part 9A of the Taxation Administration Act 1997 (Vic).

 

Also worth mentioning that whilst Lendi is technically a mortgage broking business, they're a large online business and most of their staff are unlikely to be licensed mortgage brokers, they're probably more comparible to help desk operators following a process. The process might be quite detailed and robust, but Lendi is unlikely to offer strategic lending advice.

It's like going to a restraunt. They can show you the menu and make some suggestions. They can probably tell you about todays specials and indicate portion size depending how hungry you are. You'll then get what you ordered. Just don't go there asking for an overall nutition plan.

 

That would be a purely online lender that primarily interacts with you via their website, and it's probably a bot, not a person.