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PPOR interest rates then IP / multiple brokers?

Discussion in 'Property Finance' started by zlatan9, 19th Sep, 2016.

  1. zlatan9

    zlatan9 Well-Known Member

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    If I get a PPOR mortgage rate and then move interstate and subsequently rent my place out, could I keep staying on that rate?

    Do people recommend using more than one mortgage broker to shop around for best rates?
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Yes, if you don't tell the bank.

    No, because you would be wasting people's time. If you want the best rate do a websearch.
     
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  3. Redom

    Redom Mortgage Broker Business Member

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    If rate shopping, cut the broker out and go to online lenders. Brokers usually provide a different value than the best rate (advice, structure, guidance, etc). If not required, you may be able to source cheaper finance by going to lenders that don't deal with brokers (and save on distribution costs).
     
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  4. zlatan9

    zlatan9 Well-Known Member

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    Thanks - I thought all brokers did was negotiate the best deal but maybe I should ask more from my broker :)
     
  5. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    If that's all they did - they'd be no different to canstar.

    For the lowest rate - do some googling and find the cheapest online lender.

    Cheers

    Jamie
     
  6. zlatan9

    zlatan9 Well-Known Member

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    Don't they negotiate with lenders for better deals (whereas Canstar is just an aggregator of offered rates)?
     
  7. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Brokers do that, but that is only one small aspect of what they do.
     
  8. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    Some lenders will negotiate pricing but many won't. There's a LOT more to lending than just rate - you need to factor in future plans so the loan is structured correctly, tax aspects, bank policy, and so on. No online rate comparison is going to do this for you. In fact many brokers won't do it properly either - some brokers are just an online rate comparison website in human form. ;)
     
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  9. Colin Rice

    Colin Rice Mortgage Broker Australia Wide Business Member

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    Selling on rate is a sure sign you are dealing with what Jess referred to above and its also what banks do, which is where this concept probably originated. Its also a sure sign you are entering a transactional relationship as opposed to a strategic approach.

    If you broker or banker hasn't asked what you short, medium and longer term goals are as one of the first questions then run Forrest run.
     
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  10. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    If cost was truly the main motivator why do most of us not drive Chery brand of motor car

    I mean it has 4 wheels, seats and provides transport, what more could one want in a car ?

    Ta
    Rolf
     
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