Seeing a Mortgage Broker for The First Time, Do I Mention Bank Promo Offer to Them

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  echelon6 on 26/07/2017 - 23:10

  -1

  Brokers will get you into a loan product that pays them a fat commission and trail - if you want to chase the promo deal, you should apply for it yourself.

  • 

    [Deactivated] on 26/07/2017 - 23:36

    from what I've seen, the commission+trail is almost the same across the big banks … so they wont necessarily push you toward a higher commission product, but they also wont look beyond their panel of lenders, which isn't the best outcome for you.

  • 

    tomleonhart on 27/07/2017 - 08:31

    +2

    Broker here and what you said can't be further away from the truth.

    1/ All of the lenders in my panel pays the same upfront commission. Trail commission difference between lenders for me is <than 0.11%.
    2/ We know clients aren't stupid. If we set them up with a bad rate/bad product, they will switch lender as soon as they realise it and we lose our commission in the process. Brokers who steer clients into lender based on commission are essentially working for free for you.

    • 

      echelon6 on 28/07/2017 - 15:50

      -2

      1) different broker different pricing access
      2) fair point, but you get to keep the commission if they switch a bit late, clawback periods aren't that long compared to how long the average punter keeps their loans

      Let me ask you this - how come brokers don't have on their panel the actual cheapest rates available on the market, e.g. offerings from loans.com.au and other non-bank lenders?

      For me there's really only 2 valid use cases for brokers
      1) too busy
      2) hit serviceability ceiling, need experienced broker that knows the ins and outs of the higher appetite / looser lenders
      For actual best value, can't beat going direct to one of the cheaper lenders.

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  CyberMurning on 26/07/2017 - 23:24

  +5

  Of course, mentioned the other banks deal, promo etc and ask them to find you better deal. They work for you, they get paid.
  Also ask for Cashback/rebate.
  Ask if you can refinance and move to other bank after xx years. Unless they can find you better deals. Remember they get trail commissions for the length of your loan.

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  [Deactivated] on 26/07/2017 - 23:33

  +3

  are you seeing the broker professionally or romantically? talking rates can be a turn on for some brokers but it go either way

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  garetz on 27/07/2017 - 00:38

  +1

  So 1 person you know, the tiniest sample size takes a loan with ING, and that indicated to you that ING is competitive ?

  With that reasoning you aren't going to get the best possible deal available.

  There is a reason places like ING offer cash bonus incentives, either they want to fool you with a small bribe to go with them, where they make 100s of thousands from you anyway over the length of the loan. Or they want to increase their position in the market.

  You are much better off getting a 0.01% decrease in your loan interest rate than a small dollar incentive to sign up with someone.

  The broker supposedly works for you and your own interests, you can tell them whatever you want. However in my experience the broker pushes products that makes them the most money and kickbacks. So you probably are not getting the best deal through a broker unless you know them personally. Even then i wouldnt trust someone i knew who was a broker. Take everything they say to you with a grain of salt, brokers are almost as bad as insurance salesman and 2nd hand car dealer.

  More than likely you are better off going to your bank, who you have dealt with for 5 plus years, and see what your options are then see a broker, so at least you can compare.

  • 

    Fever4shakin on 27/07/2017 - 10:50

    It is based on the little exp I have to go off, and the fact that they had no other reason to go with ING besides the fact it was the best their broker found for them. They weren't previously with ING like I am.

    Of course I want to find the best rate /deal which is why I'm talking to a broker and debating if I should even mention it.

    Thanks for the advice. I think I will def have to do some independent research outside of seeing a broker.

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  spal on 27/07/2017 - 07:41

  I would mention the bank offer, or any better rates you come across by doing more research, but only if what you find is better than what the broker is offering you. With brokers, it is not exact science. Brokers are good when you have issues in obtaining finance or you have complex affairs based on your income or investment portfolio. In your case it should be straight down the line. Things likely to be of interest would be:
  1. Fixed v variable rates
  2. The rate you will pay
  3. Any upfront or ongoing fees or charges
  4. Offset account
  5. Pre-payment and redraw facilities
  6. Other banking products eg free credit cards, etc

  Now if you are looking for buying a land and then building, or buying a house and land package, then you will need more flexibility due to progress payments etc.

  Hope it helps.

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    Fever4shakin on 27/07/2017 - 11:02

    Thanks! My finances are pretty simple so this is very helpful :)

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  Trying2SaveABuck on 27/07/2017 - 08:37

  I dont know id this will help but this is my experience
  Talk to a broker (i did) but you dont have to go with them (I didnt). I purchased my 1st property in 2014 at 23 (24 by settlement) years old - the big banks at that time were asking for around 5.5-6.5 % comparison rates for there loans - I had NO IDEA ABOUT PROPERTY but i knew i wanted to get in the market prior to that i was trading stocks with better then mix results but simply put i was so scared to get a loan for investing in the stock market but less scared to get a loan to buy property (dont ask me why). -

  So i talked to a mortgage broker because thats what some people at work told me to do BUT i also did my own research on websites like Canstar. I learn a few things speaking to the broker but didnt sign anything compared it to my own research and took the best result for me brokers do get paid to put you into there pools of loan providers so you might not get the best rate but i think it is good to speak with someone to get an idea it costs you nothing. I ended up getting a loan at the 4.43% (Bankwest) which was ok at the time (not the cheapest but i lacked the confidence to go online not traditional leanders). Although i think Bankwest where great (They got a greedy not passing on a few rate cuts) i decided to refinanced with Ubank (also not the cheapest but pretty close to the cheapest you can get) who have terrible service but I have a bit more of an idea about that im doing with my investments now and dont need the 'training wheel' bank treatment.

  I dont know if that makes any sense but that is how it worked for me

  • 

    Fever4shakin on 27/07/2017 - 10:57

    +1

    Thanks! I have no idea about property atm so I think seeing a broker will be valuable even if I don't end up going through them. Everyone I know has gone through a broker and my parents haven't had a mortgage in 20 years so they're not up to date with it all. It's helpful to hear about how others have done it.

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  pyramid on 27/07/2017 - 11:05

  I went with Broker and he did most of the legwork but i also did my own research, spoke with banks, tried them to come up with better rates etc. At the end i went with broker. But i also agree with Tom. Let me know if you need his details, he is regular here.