What is the role of a mortgage broker ?

Discussion in 'The Buying & Selling Process' started by Sigemup, 29th Sep, 2020.

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  1. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    A good guide in my view is someone that challenges your thinking at the risk of losing the business. A good broker is a doorway, not a doormat.

    A well structured loan set up combined with some goals orientation, and an active debt recycle structure may carve 10 years or more off a loan term, and often things like rate come well down in the decision tree.

    A recent example is for a borrower new to us with 8 props already, buying a new PPOR

    The primary needs were defined by client as low rate. PI, fixed and pay it off asap.

    Couple of goals and strategy sessions we ended up with largely IO, an active debt recycling strategy and 105 % borrowing, because there was a good chance the new PPOR would later become an IP.

    A product fulfilment style broker would have simply done what the client asked. with the Possible loss of a 62 k tax dedn in interest each and every year reverse compounding.

    BID regs coming in Jan will help a bit

    ta
    rolf
     
    Rolf Latham, 30th Sep, 2020
    #21
  2. Angel

    Angel Well-Known Member

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    Angel, 30th Sep, 2020
    #22
  3. kierank

    kierank Well-Known Member

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    Nah, I am just a grumpy old male wannabe investor :p
     
    kierank, 30th Sep, 2020
    #23
  4. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    You're not going to get useful information from an ombudsman website, or frankly any other website about complaints. You're not going to be able to figure out what to look out for. Instead be open and honest with the person you're dealing with. If they're not answering your questions openly, move on.

    All of the brokers that regularly contribute to this forum are quite good. Average or poor brokers tend to improve quickly or get called out. There's not a lot of property managers here, but odds are the there will be someone who knows of a good property manager in the location of interest, just ask.
     
    Peter_Tersteeg, 30th Sep, 2020
    #24
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  5. inertia

    inertia Well-Known Member

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    Absolutely still applies - this is what happened with my previous broker, but I was not quite confident enough to challenge them on what they did. Specifically, when I refinanced, I increased the loan by $20k with a view to investing, but they did not split that portion off the rest of the loan, plus they cross collateralised some of the investment loans. The loan that increased was an investment property, and we moved in when we did the refi, so not the end of the world at that point, but if we move out, I'm not sure we would ever be able to decontaminate the loan.

    Subsequently refinanced, and similar to other comments, we got a list of brokers from here. I liked the content @Jess Peletier was providing, and we went with her. Never met in person (she is in WA, we are in Newcastle), but have had video chats, phone calls, emails, etc. I'm very happy with the ongoing support and advice we are receiving.

    cheers,
    Inertia.
     
    inertia, 30th Sep, 2020
    #25
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  6. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    Why are you so focused on what might go wrong using a broker, instead of what can go right?

    Why are you focusing on complaints instead of benefits? I feel like no matter how awesome your broker is, you're not going to be happy because you're mistrusting of them.

    Maybe you are best off going to the bank - you seem to trust that process better.
     
    Jess Peletier, 30th Sep, 2020
    #26
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  7. Trainee

    Trainee Well-Known Member

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    You have to trust something.
    If you don't trust a broker, don't trust your own ability to assess a broker, and don't trust the opinions of experienced investors, what are you left with?
     
    Trainee, 30th Sep, 2020
    #27
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  8. Sigemup

    Sigemup Well-Known Member

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    Hi @Jess Peletier

    Thank you for the reply.

    Not focused much on that ! - as I do not know anything about it, only wanted to get an idea about it to make sure I know the obvious things that someone with experience may already know.

    Regards
     
    Sigemup, 30th Sep, 2020
    #28
  9. NewSubaru

    NewSubaru Member

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    Looks like that you have been researching the market since early 2019, any bites yet?
    I think you are focusing your time and energy for the wrong reason. At some point, you just have to make a move and progress from there.
     
    NewSubaru, 30th Sep, 2020
    #29
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  10. Lindsay_W

    Lindsay_W Well-Known Member

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    How to choose a mortgage broker? posted over a year ago, seems like analysis paralysis :confused:
    There is no specific direct answer to this question IMO - speak to a few, see who you gel with, go from there.
    Ask lots of questions especially if you're unsure why they're recommending what they're recommending, ensure you understand why it fits your needs and objective.
     
    Last edited: 30th Sep, 2020
    Lindsay_W, 30th Sep, 2020
    #30
  11. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    A rental ?

    ta
    rolf
     
    Rolf Latham, 30th Sep, 2020
    #31
  12. Morgs

    Morgs Well-Known Member Business Member

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    This is my niche :D
     
    Morgs, 30th Sep, 2020
    #32
  13. jaybean

    jaybean Well-Known Member

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    You're left with a 21 year old kid at the bank advising you.
     
    jaybean, 30th Sep, 2020
    #33
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