Mortgage Brokers

Hello everyone new here,

decided to buy an investment property where I live in fremantle, going with a local mortgage broker who is giving me the paperwork for an ANZ loan

Just wondering if mortgage brokers tend to give loans under vendors that give them a higher commission or if anz is the best loan in this case (90% LVR with a deposit of 150k).

Thanks everyone, appreciate the help.

 

Last time I heard, which was about 9 months ago, ANZ was ridiculously slow in its broker channel. Think 2-3 months turnaround. killed a deal for me (timed out). I was not happy


‘We got it wrong’: ANZ pledges to speed up mortgage approvals

 

I would suggest you ask him why it is the best loan product for you and what his thought process was for selecting this lender for your individual scenario.

 

There isn't a major difference in between the commission lenders pay so brokers aren't guided by which lender offers them the most commission.

You need to find out why ANZ is better for your situation over other lenders.

At a 90% LVR you need to ensure that you will use that lender for a long period of time as you want to be able to reuse the LMI credits. ANZ has a good servicing calculator, they have excellent cash out policies and a good overall lending policy. So at a high level they are good in the LMI space. The only downside is that their interest rates aren't as competitive as some of the other lenders in the LMI space. Again lender selection will come down to your current situation and future plans.

Also ANZ's servicing times have reduced significantly.

 

Not true anymore. ANZ approval times have massively dropped.

@liam loubser commission between all banks is just about the same, .65% up front and .165-.2% trail. So I don’t think you need to worry about that. The broker should have given you some documentation on the different lenders he compared.

 

Generally a broker should provide a few options , if only 1 option is provided then there should a reason why..policy ? Valuation ?

 

After a year of lousy turnaround times I stopped using ANZ about this time last year. Sent them another deal recently because they were by far the best suited to the client (very narrow set of circumstances).

It took them 12 business days to pick up the file and generate a list of problems that could have been resolved over the phone. Another week to process my reply only to tell me they want a full valuation (not a desktop). Now we're still waiting for them to respond to that.

Their quoted turnaround time of 9 business days seems to be only for the most basic deals.

They can wait another year to see more business from me.


Most lenders pay roughly the same, there are plenty of lenders that pay slightly more than the ANZ. It's incredibly unlikely that a broker would recommend a lender based on commission (it would also be illegal). Ask your broker specifically why they've recommended ANZ.

 

Mortgage brokers have a 'best interest duty' to abide by and are also required to put the clients interest first in case of a conflict of interest. So they are required to not pick a product that pays them more unless that's the best product for your situation.

The broker should have explained why they're recommending ANZ over other lenders. I suggest that you ask them.

 

No they don't.

If YOU don't understand why they're recommending ANZ over other available options simply ASK the question... it's up to you to ensure you're understanding the advice you're being given.

Curious to know why you decided to use a Broker?