Mortgage Broker Vs Online Non-Bank Lenders

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  prozerran on 16/01/2017 - 13:26

  From my experience:

  • Online lenders will nearly 99% have the best available rate. The thing you have to be careful with is what is offered with these online lenders. Debit card attached, offet nil/partial/100%, fees, flexibility.

  Also, there is no direct human contact with these loan applications. You submit and they either say yes or no. There is no time frame - so if you need to settle by a specific time - it could be an issue. For refinance, it is not as bad.

  • Mortgage broker/direct bank. From my experience, it depends who you know. Some mortgage brokers have great contacts within the bank and can get you an exceptional rate - but again it differs from one to another and unfortunately you wont know. I have dealt directly with the bank also - and again depends on who you deal with and how high they are to whether they can get you a better rate.

  From experience my latest loan I got a quote from 2 different mortgage brokers - same bank, one was better than the other. Then I had a contact within the bank and got the best rate - I basically told him what rate I wanted and he managed to get it done - wasn't a standard one.

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  idontalwaysnotlie on 16/01/2017 - 13:30

  +1

  I went though all this last year, so here is my two cents. we looked at three different mortgage brokers, and for the most part they gave slightly better rates than the banks advise, but heavily pushed their own in house re-badge products at the same time. They were all pretty upfront that they get a 2-5k commission form whoever you end up going with.
  Non bank lenders usually have better rates, but they are usually lacking in service. You can find loads of stories if you look at the reviews where they don't pass on a full rate reduction, then advertise a lower rate than they are making you pay. Getting someone on the phone is a lot harder (not that the big ones are much better these days) and there is no local branch you can go in and have a talk to. They usually have more no frills products without all the options you really don't need.
  We ended up going with loans.com.au, as at the end of the day the extras didn't outweigh the extra costs, and we didn't need the hand holding. it was a bit tight in the end as we got shifted around managers, but they came through in the end. Seems to have gone smoothly so far, but will have to see how it goes in the long run.

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  Master Bates on 16/01/2017 - 14:04

  +2

  Speak to this mob: Naritas Finance. I haven't got a home loan with them, but have spoken with them a number of times and will likely use them when the time is right.

  The key thing with non-Bank vs. Bank when it comes to offset accounts, is your money is not protected by the Government Guarantee with a non-Bank should the sh*t hit the fan economy wise.

  • 

    robbyjones on 16/01/2017 - 15:52

    +1

    I second Naritas. We had a small issue and I was a bit cross at the time but got over myself. After settlement I received a feedback request so I completed it online advising of the issue I had; the Principal of the business checked in with me several times to ensure that I was happy. Can't ask for more than that.

  • 

    Master Bates on 17/01/2017 - 12:07

    +1

    I forgot to add that when I have spoken to them, they have been very knowledgeable and happy to answer any questions. They also write very detailed responses in their emails.

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  holdenmg on 16/01/2017 - 20:18

  Have you looked at State Custodians?

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  Trying2SaveABuck on 17/01/2017 - 15:18

  -1

  Mortgage brokers are salesmen you're better off doing you're own research and finding the product that is best for you.

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  knowwhat on 22/04/2017 - 08:05

  I was in a similar situation 3 years ago and went ahead with Newcastle Permanent and had no issues with then even though the whole transaction was online. At that time their rates were much lower compared to other online rates.The person that I have as the contact, is very friendly and patiently answered all my questions. I agree, I cant get in touch with her if I pick up the phone and usually either leave a message on phone or drop in an email and get response within 24 hours, which I believe is not bad. I did recommend online banking to my friend who went with another lender and was not happy as she could not meet with the person face to face. So depends on your preference.

  I am currently looking at refinancing and have been in touch with Naritas and quite happy with their service in answering my questions which I did not get from NAB representative, even though I have been banking with them for last 7 years.