Value-add broker

Hello all.

Other than the obvious fact that a mortgage broker helps with applying for a mortgage and helping with refinance etc, what other value-add can a broker bring?

Can a broker provide extra service which will help with analysis of suburbs for example suburb reports or property reports etc?

Will like to know how else a broker can help and add value post settlement of a loan

 

It depends on what they are licensed for. I give tax and legal advice, generally at no charge. Not many brokers can do that. Some have access to property reports, desktop valuations etc.

 

how about just a mortgage broker?

 

I have no idea what others do.

 

Most brokers have property reports and access to valuations.

We have a property strategy program and can also help with research tools and education, but that's not standard for most brokers.

 

What specifically do you want the broker to assist you with post settlement?
If it's outside the scope of traditional Broking services, would you be willing to pay a fee for it?

 

Dont look for services brokers shouldnt offer.

look for what makes a good broker: the ability to strategically get you more loans.

 

this is a fundamental misunderstanding.

A good broker helps you find the right mortgage that helps you down the line. Papershuffling is the easy part. Knowing which paper to shuffle, when and to which lender is the value add.

 

Brokers shouldn't be helping with finding properties, negotiating, giving investment advice, advising on property etc unless they hold appropriate licences and are covered by insurance for this - some are, but often through different companies.

 

And typically the ones that are licenced to do so charge additional fees for those services

 

I think what I want to know is what does fall inside the scope of traditional broking. Definitely not asking the broker to do something above and beyond but on your note with the fees, I thought that is why they received trailing commissions?

 

finding the "right" mortgage and "which" lender i think is quite subjective.

Until now, I haven't really been able to see the transparency of how a broker has acted in my best interest other than them telling me they have dealed with this lender alot and have no issues etc.

Happy to be corrected on this - i may just have an average broker.

 

A little under $10 an hour inc GST for that client. What if we extrapolate that with the total number of clients you have

 

The value of a funding strategy is when you start hitting limits with some lenders but not others. Or specific requirements such as needing a quick settlement, self-employed, investment income, etc. A lot of it is avoiding applications that will be rejected and mess up your credit file.

As with legal, inspections, otp, etc, avoiding mistakes and issues is just as valuable as making the right decisions.

If you just want a PPOR loan at the lowest rate to pay it off ASAP (though thats not the best strategy), any broker can do it. You could do it yourself.

One indication of a good broker, and a good broker relationship, is when they suggest a loan that may not have the lowest rate, they explain why they chose it, and you understand their explanation as it matches your future goals.

 

You don't know what you don't know comes to mind.

 

It's not going to matter how many clients you have if you're losing $20/hr on running costs. You'll just go broke more quickly.

 

100% they should, many expect they shouldn't have to pay due to the whole 'trailing commission' argument as can be seen below

No, that's not what trailing commissions are for, they relate to the Credit Advice only, anything outside that scope don't expect it to be free. - as my previous post said "if it's outside the scope of normal broking services"

 

Recommend asking your broker - "why is this your recommendation?" "What alternatives do I have?"
Dealing with one lender a lot is not a reason to go with them IMO - and I bet if you asked, you'll find that there is more to it than just that.