Picking a broker

Discussion in 'Property Finance' started by Dienst, 5th Jan, 2019.

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  1. Dienst

    Dienst Member

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    Hi guys,

    I'm a newbie investor. I've compiled a list of potential brokers - and potential lenders themselves - from online research I've done. I'm wondering if anyone has had any experience with these brokers or lenders (good or bad) and have any insights on what to look for in a broker and, for that matter, in a lender.

    Research online has revealed some questions I can put to them but nothing beats lived experience. There are many online comparison sites but they all seem fairly similar with none having 'the edge'.

    So far on my list I've got:

    Brokers:
    Aussie
    Mortgage Choice
    Sage
    E Choice
    Finsure
    RAMS
    Homeloanexperts.com.au
    Essentials Variable Home Loans - Loans.com.au

    Lenders:
    Ubank
    MeBank
    Bank Australia
    ING
    Tic Toc
    Pepper Money

    Advice and suggestions much appreciated!
     
  2. Trainee

    Trainee Well-Known Member

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    A good broker finds a lender to meet your requirements. What are your requirements? Not just the lowest rate. Offset? Redraw? Is this for PPOR or IP? More purchases down the track?
     
  3. Dienst

    Dienst Member

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    Low rate with offset is best and what I'd be after. But say I go to two lenders and they each offer me wildly different options, then it's a bit confounding. The question, I guess, is what tips people have in terms of seeking a good broker. What's there to look for and what red flags are there?
     
  4. Trainee

    Trainee Well-Known Member

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    Do you plan on buying more property in the future? If yes, rate and offset arent the only things you need. Its unlikely two different lenders offer you wildly different options.
     
  5. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Lets exclude Pepper and Ubank from your list.

    They dont have true offset per se .

    why do u feel you need an offset ?

    if low rate is the core/primary focus, and you know that to be the true goal/need vs assumed need, then the various loan comparison sites do a sterling job of ranking rates, you dont need a broker really.

    ta
    rolf
     
  6. Terry_w

    Terry_w Mortgage broker licenced 4 tax/legal advice Business Member

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    Do you like fast food or gourmet food?
    You list contains mainly the fast food equivalents.
     
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  7. Trainee

    Trainee Well-Known Member

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    That list just looks like you got it from some lowest rate per category list. which would explain why Pepper is there together (lower rate lo doc)? The list of brokers is all large franchises. Did this come from one magazine?

    Suggest you start again. Write down what you want in a loan, why, what your goals are and investment plans.
     
  8. Morgs

    Morgs Well-Known Member

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    You don't pick a broker group (nor lender) but you pick a specific broker.

    As an investor you look for someone who ideally has not only the expertise and proven track record of delivering great outcomes for their clients, but having walked the walk themselves a successful investor.

    Plenty of them on this forum like @Shahin_Afarin
     
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  9. wylie

    wylie Moderator Staff Member

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    I’d pick one from this site. We’ve used a couple from here (amongst our family). If you use the ones you’ve listed you might as well go direct to the bank and that isn’t good.
     
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  10. Harry30

    Harry30 Well-Known Member

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    I used Aussie for about 2 years. Certainly a better experience than dealing directly with banks. I suggest all the broker franchises will be hit and miss. You may be allocated to the person whose is doing his or her 2nd week in the job and is just giving broking a try. Or you may get the top person in the franchise, with 10 years experience, who has topped sales in the franchise for the last 3 years. I eventually left Aussie as the person I had was using was just not capable of taking me to the next level. He did the basics right, like return phone calls promptly, was diligent with the documentation, etc. But his skills and experience did not extend much beyond that. Once I moved to the point of asking for a loan in the name of my company (v purchase in my personal name), he really struggled, so I knew I needed to cast the net wider.

    I guess it all depends if where you are and what you want to achieve. If you are a first home buyer, you will probably do ok with the list. Beyond that, they may be able to get you to (say) 1-2 IPs if you get the right person. If your ambition is to get to a property portfolio of say $20m, then those franchises will not get you there in my view. I know for a fact there are brokers on PC who can work with you to achieve those types of ($20m) goals. If that aligns with your ambition, I suggest you put together a short list of say 5 based on posts you see on PC, and interview all 5 individually for an hour. Tell them your 5 and 10 year plan and how you can work together to achieve that. Make a choice following the interviews.

    You may not want to put in that level of effort, and/or your goals may not extent much beyond a single PPOR and say 1 or 2 investment properties, which is perfectly ok. In which case, you will probably do all right with the list you have.
     
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  11. dabbler

    dabbler Well-Known Member

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    Brokers you would think should all be the same, but they are not.

    Try some of the ones from here.
     
  12. HUGH72

    HUGH72 Well-Known Member

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    Can you expand on why you don't think Pepper has a true offset?
     
  13. Terry_w

    Terry_w Mortgage broker licenced 4 tax/legal advice Business Member

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    Not an authorised deposit taking institution
     
  14. HUGH72

    HUGH72 Well-Known Member

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    I am aware of that but they still have offset accounts?
     
  15. Terry_w

    Terry_w Mortgage broker licenced 4 tax/legal advice Business Member

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    Is it redraw disguised as an offset?
     
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  16. Dienst

    Dienst Member

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    Sorry, rookie question, but is there such a list?
     
  17. Dienst

    Dienst Member

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    No, I spent a few hours looking online. Admittedly, I was biased towards larger firms but that's dipping one's toe in the water for you.

    I have those things written down, which I would take to a broker should I find one that ticks boxes - the question is more about detecting a good broker or red flags from one.
     
  18. Dienst

    Dienst Member

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    Yes, planning to buy first IP and second one in a subsequent year. Offset seemed to make sense in terms of savings but if there's a sufficiently low rate and the ability for me to pay off the loan quicker, then that would also be tempting.
     
  19. Trainee

    Trainee Well-Known Member

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    The problem is you dont know what you dont know. In this environment, serviceability is more important than rates. Forget both lists. Sometimes good brokers dont like to work for bureaucracies. Read the posts by the brokers, find one that resonates and talk to them about your plans. Dont even mention what sort of loan you want.
     
    Last edited: 6th Jan, 2019
  20. tobe

    tobe Well-Known Member

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    Yes. If I was good at IT I’d give you a link. I think it’s called a service directory on the front page of the forum.