I finally decided to get a house/unit after waiting several years for the bubble to burst. In my rush to get started, I called iSelect and was recommended the ING Orange Advantage which seems to be a good deal at the moment.
After reading about trailing commissions and hidden costs (some of which I probably don't understand), I am thinking if it was wise to go with iSelect at all. The pre-approval is still pending as I forgot to send some paperwork with the initial bundle and I feel like a dick reconsidering it now after the broker answered my questions politely.
My main questions for now are
- financially, is it better to sign up for a loan via iSelect or go direct to ING?
- anyone had good/bad experiences with iSelect? I know it would be anecdotal but will give me additional points to consider.
- anyone ever got trailing commissions refunded after getting a loan via iSelect?
- If I reconsider at a later stage, can I get another loan approved with ING directly or via a different broker?
- will I owe iSelect any money if I switch lenders in a few years?
- should I check again with Canstar or anyone else? Is it better to see a broker in person than one of these online tools?
Apologies if these are too many questions, a lot of this material is still a bit fuzzy to me. Thanks.
iSelect aren't inherently evil, but their priority is getting commissions today, so they won't recommend loans that don't pay them much. I would always start with Canstar who list all offers.
I don't think it is a bad idea to use a mortgage broker, especially if there are any unusual elements for your purchase (non-standard LVR, income evidence etc.) and they are pros who deal with mortgages everyday and are often able to explain the 'dumb questions' that only crop up now and again.
I know there are a few mortgage brokers on OzB, and I would be surprised of they wouldn't be willing to give you a second opinion and see if they can do better than iSelect, with no obligation.
And most mortgage brokers are small business people who are keen to build a report with customers. They might not make a lot off your first purchase, but if you use them for the next 4 purchases over the next couple of decades it will be a good investment in a relationship to look after you now.