What to expect from a M-broker

Noob question. But what sort of expectations should someone have of a mortgage broker and when should additional fees come in?

How much time should one expect for instance?

 

Everyone works differently so it really depends on the broker.

You should be able to discuss your expectations with your broker up front to ensure that you're both aligned. That way everyone is clear on what is required for the situation and you can both be working toward delivering it.

In terms of fees again it depends. I would say for the most part, most brokers will not charge you a fee for service as they're remunerated once the loan is settled with the lender. Exceptions to that might be where no commission is payable or more complex applications.

 

I can’t speak for everyone, but we mostly don’t charge. Times when we do include large or complex portfolios, and tiny loans for new clients.

Time can vary depending on the lender, but also on how proactive the broker is.

 

Expectations is for them to guide you and pro use you with a smooth process throughout your loan application, ensuring youre confident.

But as above, it depends on what your expectations are and what you're after.

 

Let me try @Rolf Latham
As a customer I would want
1. a prompt response (within 2-3 days max)
2. best rate negotiated for me
3. reassurance/confidence that loan will be approved within the time frame
4. good communication throughout the process
5. no fees for straight forward residential purchase (usually I would clarify for any fees upfront) I would not want to be charged later in the process

 

1. Honest, transparent, successfull broker and investor,
2. Strong understanding of lending market and policies from different lenders,
3. Willing to discuss with me my investment objective and strategy to see if it fits,
4. Can get the deal done with upfront, clear and prompt communication.

 

The better you can articulate your plans and situation, the better your broker will perform.

 

1. A broker that listens to me
2. A broker that has credibility

 

Client: i want the loan with the lowest rate because i want to save money.

mb: but the loan with the lowest rate doesnt have an offset, in the future....

client: you need to listen to me! I want the lowest rate. I want to smash the loan.

mb: But if you move in the future...

client: i’m going to stay in this place forever. Are you listening to me?

Mb: ok.

10 years later, “i’m moving ppors and want to keep this property as an ip. What do you mean none of the interest will be deductible? I saved hard to pay off the loan!”

 

Really appreciate the responses. Helping me shape in my own head what I want from a mb.

Is there a big home advantage to picking one from the city you wish to buy? I’m not fussed about a face to face meeting.

And do I then just approach a broker via PM and set up a call?

 

Generally loan processes are not state specific. Whereas the buying / selling process IS state specific.

think about your own situation first. What are your plans? What will you do in 10, 20, 30 years?

ideally learn something about loans first. A good mb will educate you, but you have to be willing to learn, or just trust them (which is risky if you dont know how to evaluate their advice).

 

Sure, I'll use the example below as this a perfect example on how the MB did not listen to the customer.

What the MB should of uncovered is 1) what the actual problem is and 2) what the customer's long term financial goals are.
This would of been better than the mexican standoff that proceeded between the customer and the MB.

 

while you can read it that way, it would have been so much easier and effective for all parties if the customer knew some basics about loans and had thought themselves about their long term goals. Which the customer should know best.

this applies say if you are employing a builder for renovations. Or get a tv. Or get tax or estate planning advice. Or seeing a doctor. The more good knowledge the customer has, the better.

The advice of, say, parents who havent borrowed for a generation or friends who have just bought their first ppor, is probably not good knowledge.

 

Funnily enough, the best interest duty that the gov is trying to implement would have us not bothering about future goals, and focusing only on price to the client right now. Even the law-makers don't get what we do...so it's hard to expect that the clients will.

That's why I love working with PC members. They just get it.

 

1st and most importantly, reliable, timely communication.

When that drops off, one feels a little bit...well... unvalued.

 

If it helps, having clarity on what you want and are expecting definitely helps brokers get the best outcome for you. Going through this exercise is a good idea before approaching.

 

As a customer that is looking to refinance (and traditionally left the decision to my wife and broker), I am now trying to educate myself on.

- Broker v Going Direct.
- Fixed Rate v Variable or Mix.
- interest rate v comparison rates.
- Fees (setup, ongoing, exit etc, are these all calculated in comparison rates).
- LVR
- Length of Loan (impact it has).
- Features (offset, redraw, credit card).

What other things should I be aware of? e.g.
- income v outgoings
- employment history (how many payslips are required)
- clauses in loan Re: broker v going direct.
- when should I engage with a broker I have heard the broker will register the enquiry with several lenders (to protect the enquiry).
- I have also heard you should not enquire / apply with a lender unless you are well prepared eg don't try with a low info application, get refused, apply elsewhere with new information on your situation.