Would having a mortgage broker add much?

Hi property gurus
We are looking to buy a new PPOR, budget ~1.4-1.7 million and converting current house to an IP. Me and my wife both have stable permanent jobs and income ~500 k per year pre tax.
Current PPOR value at ~760k, owing ~230k. No other debts.

Spoke to the big four bank and was told no problems getting a loan, aiming for LVR of 80%. The best rate so far is from Westpac 3.64% P&I and 100% offset (1.6 % discount on SVR for the life of the loan).

With our situation which seems to be a relatively uncomplicated loan structure, will engaging a mortgage broker provide any more benefits?

 

As you've already done the hard yards and everything is fine, I'm sensing you're fishing for some yes's. Or you like to play hard to get?

 

Do you plan to borrow any further for IP's or is the PPOR your only forecast property purchase

 

Wattleldo: was advice by mates to use a mortgage broker. Decided initially to just approach the banks myself and didn't find them too difficult to deal with and everything seems pretty straight forward. So wasn't sure if there is any thing else that a mortgage broker can add to my situation for example access to better rates?

DaveM: Just looking to buy the PPOR at the moment. Planning for further IP purchases only in the next 2-3 years

 

• Independence from the banks
• Big white shiny teeth
• Able to compare several products from. multiple institutions to suit your needs
• Won't unnecessarily cross your properties
• May leave each property with a different financier

 

Having a nice meeting with someone who works for a bank is a good omen, not sure whether it means anything.

There are better rates online if that’s what’s important.

Many people like using a broker as there is one touch point. It’s not a new person to deal with at each stage, it’s not a call centre.

Depending on how much information you want a broker will most likely answer more questions you didn’t know you had about the process and diferent bank policies. It’s not for everyone, many find this sort of stuff boring.

Many brokers keep in touch with their customers and keep them abreast of changes to the market. Help changing to a diferent product or lender when the market changes, or when your circumstances change, such as having kids and other life events.
This might be done with some lenders but it’s more likely you get left to sit until you approach them again asking for a discount etc.

 

I could think of a few different ways to structure loans more effectively to save you both interest and tax. There may be other tax and legal strategies to consider.

Question is would it harm you to use a broker?

 

Thanks Terry. Probably not.
Would probably look to engage one and see if they can add value and help navigate us through the process.

Cheers

 

Use a broker, no question. A good one, not just any from the yellow pages.

You have nothing to lose, even if they get you same deal you get directly from the bank, you’ve started a relationship with someone who can propel you forward......there also that thing Rolf mentioned.....you don’t know what you don’t know.....

 

How you structure your portfolio from first purchase to what banks you strategically engage can often affect purchases years down the line.

Everything is joined and has consequences . Banks wont tell you this nor will they help you plan for it. It's against their best interests.

 

Well it's unlikely they'll tell you that another bank may offer you better options or go and compare with x, y and z bank.

 

The biggest value add that i can see in your scenario is less to do with low rate than structure.

Banks have one way of structuring your loan (in their best interests) and a good broker will have another (in your best interests). A bad broker will likely do it like the bank will.

If you're determined to deal with the bank directly, make sure they don't cross secure your loans.

 

Not dealing with the right banker.

 

There a couple of different brokers I use depending on the deal and I've been pretty OK..Though I use very little borrowed funds these days . Use my own bank

 

There are a few brokers I often recommend on this forum.
There are great brokers and great bankers.

Just calling it out when people state bankers only structure in one way, not true.
Or that they're only looking after the banks interest, not true.
The same thing could be said for many brokers.
It's just completely counter productive, need to be looking after the customers best interest, otherwise they won't be clients for too much longer.