Hi,
I mainly do asset finance. Been doing it for over 2 years at a medium sized business.
Ask me anything!
[AMA] I Work as a Finance Broker
LBrokeR2018 on 15/06/2018 - 13:18
closed Comments
Great question - it does vary as to what the end goal is eg: high lend or low rate.
Typically it would be better for a diamond with a flaw. That being said hopefully the diamond overshines the flaw.
Any tips for high yield investments? :)
Someone was going to bring it up, so I thought it might as well be me :)Good on ya for doing an AMA though.
Haha good question. All I can say is I see a lot of people buy 60-70k cars that clear out there bank account every week on living expenses. But as long as they can mathematically afford it then it’s okay for everyone.
I feel there should be a caveat there in the sense of: "…accounting for contingencies." I would not like to be the person with a $60k car that's financed, no savings, and then suddenly lose my job.
We do offer insurances for unemployment, injury, etc. If they don’t take it we really hammer down and make sure they don’t want it as they could blame it on us later down the years for not suggesting the insurance or protecting them
Remember when personal responsibility was a thing?
What a world we live in! Everything can be someone else's fault, you can pay people to do anything for you, all you have to is your job everday… or not, and you never have to grow up and figure things out for yourself!
@Scrooge McDuck: This is what happens when governments get too big and corrupt. Instead of relying on each other we rely on government. This is one of the reasons the family unit has broken down and communities shattered.
We must turn the ship around before it's too late…
But as long as they can mathematically afford it then it’s okay for everyone.
*me and our stakeholders
Lenders/Bank do apply a minimum living expense as you are aware. And typically when we ask customers their declared living it is lower than the benchmark
Can a finance broker genuinely get better interest rates? Do they act independently on which product to recommend or are they motivated to push for a certain financier based on the commissions?
Usually we can. Our lowest rates we have is around 5% but you do need to be asset backed. In most cases the broker chooses the lowest rate to keep the customer but may take the high commission choice if it is only a few % increase in rate.
This answer is curious. Only “usually” you get better rates? Do you ever get worse rates to compensate for commission? Or is it that you always get the same or better rates than if there is no broker?
Isn’t the choice to recommend a higher rate product for the sake of commission a plain conflict of interest? Is this choice disclosed? Aren’t brokers claiming to be in the interests of the borrower to find the best product?
thank you for joining less than 24 hours ago.
Will you be posting any bargains?
Unfortunately, no
But this is OzBargain, not OzAMA
Haven't you heard? We're transitioning!
Up next: [AMA] I Work As A Janitor
OzAMA
On second thought, we might want to change that name lest we attract attention from ASIO.
How much cheaper are cleaning products when you buy them in bulk from suppliers compared to supermarkets?
How long do they last for if you buy a tonne and store them in your garage?
Are Tide Pods edible and what's their nutritional value? This one just for curiosity.
Best interest rates for PPR property?
Would be 5.69% at this stage.
That seems pretty bad rate for a home loan? Under 4% should be easy to do yourself.
My apologies I read that wrong. I thought you were after a car loan with asset backing. I only deal with asset finance.
Obviously depends on what you are eligible for just above 3.5% is the general lowest average rate. BrokeR2018 focuses on Asset finance so he may have elected to strategically not be aligned with all residential lenders.
Do you think we've had too many AMA's?
I believe so
Yes
I just ask my wife about things i need to know as she seems to think she knows everything
Just because this made me laugh I’m giving you +1
[AMA] I'm sick of all these AMA's
I personally enjoy reading these AMA sessions. They offer insight into various fields that would be beneficial to many others. These guys offer up their time and advice for nothing in return. If they happen to pick up a few referrals, I say, great on them.
Is it better to be a diamond with a flaw than a pebble without?