Used a Mortgage Broker, now I want to deal with NAB directly

LHarrow33 on 18/05/2020 - 16:39

Hello,

I know there is a lot of Mortgage knowledge out there in OzBargain land, I'd appreciate some guidance.

Three years ago we arranged a mortgage through a broker called Loan Market Pty Ltd, as recommended by a work colleague.

We didn't need to use a broker to get us over the line, just took the path of least resistance.

Now I would like to negotiate our mortgage directly with NAB because we are paying more than 3% and it seems we should be able to do better than that on a $400k loan, our equity and income are more than adequate.

I prefer to do things properly and with due respect. Do I need to cancel the relationship with the broker and/or advise the bank?

I am happy to call the broker but would probably get a pitch as to why I should re-finance through them. I'd really just prefer to do it myself.

Appreciate any input.

Thanks.

Financial Home Loan Loan

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Comments

  • loulou1 on 18/05/2020 - 16:41
    +11

    Or just contact your broker and ask them to negotiate your loan rate for you

  • jimdotpud on 18/05/2020 - 16:57
    +9

    your broker only negotiates the initial setup of the loan, for which the bank gives them a commission. after you loan is established you have no ties to the broker. you can do what you want. i went through a broker when i bought my first house, after that i dealt directly with the bank(s)
    You should call your bank and ask them to do a better rate on your current loan. most of the time they will want to keep your business and drop the rate for you. if not, jump ship.

    • chcse on 18/05/2020 - 17:15
      +2

      Not exactly the case, brokers used to get an ongoing commission too. NAB refused to deal with me directly referring me back to my broker as NAB were paying the broker trail commission for them to do the admin stuff. I think OP has to do something to officially break ties with the broker first (one way is just to refinance with NAB or another bank without using the broker).

    • Kontiki on 18/05/2020 - 17:16
      +5

      I find brokers are happy to negotiate a better rate for you over the years. They get a commission for the life of the loan (not a one off), so they will be keen to keep you.

      We don't even have to ask our broker, they contact our bank once per year or so to press for the best rates. They do because they know we will start shopping around ourselves if they just lean back and do nothing.

      • sschen on 19/05/2020 - 01:59

        Wow. Good broker you have there. I wish my mortgage broker does this? In fact, I am sure not a lot of brokers do????

        • Kontiki on 19/05/2020 - 05:03

          We've only been with them for 3 years so not sure if it will stay this way, but so far they have brought down the rate twice.

        • Ongy528 on 19/05/2020 - 11:10

          You are not the only one, my broker definitely didn't do this for me over a 2 year period. I had to take active steps in the second year to call bank and then email my broker to get me a better rate from the bank.

      • Kinko82 on 23/05/2020 - 19:43

        This is where it's a win win situation but like all professions, not everyone is good at retaining and reviewing the client. Those who are, get rewarded with longer relationships and maintain their clients business.

  • tsunamisurfer on 18/05/2020 - 17:34

    Can Brokers still get trails these days and therefore keep that relationship between you and the bank?

  • Choc0 on 18/05/2020 - 17:34
    +4

    Call NAB direct and tell them that you've seen great refinance offers in the market and ask what they can do for your rate. Never hurts to ask

    If that fails

    Call your broker. Tell them you're looking to refinance direct with Big Bank X unless you get a better deal

    If that fails

    Follow through and move to a bank that is giving 4K-6K in incentives for moving

    • El-Rhi on 18/05/2020 - 18:20

      Who’s offering 6k??

      • SirFlibbled on 19/05/2020 - 10:05

        ANZ is offering $4K

    • Kontiki on 19/05/2020 - 05:07

      This is the way.

  • mortgagebroker on 18/05/2020 - 17:53

    There is nothing stopping you from contacting NAB directly.
    The broker will most likely still retain the ongoing commision unless you make a significant change to the loan.

    Call NAB and do everything yourself. No need to contact or inform the broker. If you get push back from NAB go back to the broker.

    • [Deactivated] on 18/05/2020 - 19:49

      The broker will most likely still retain the ongoing commision unless you make a significant change to the loan.

      Or make the broker work for the money. Why should he get commission on the loan when Op is doing all the legwork.

      • mortgagebroker on 18/05/2020 - 20:09
        +1

        Just providing information related to the question.

        I agree with you, I think go back to the broker and ask for better pricing, but OP wants to do it themselves.

  • yolo123456789 on 18/05/2020 - 17:58

    If you're already with NAB, I think you should be able to just contact them about interest rates etc without necessarily doing a re-financing.

    • peterpeterpumpkin on 18/05/2020 - 19:18

      You'd think so, right? My bank charges me more than customers that joined in later years but won't give me that rate without refinancing, even pre-coronavirus when the LVR was safely less than 33%.

  • spoonmugen on 18/05/2020 - 19:17

    i moved from bankwest to ubank and I kept getting calls from the broker who set up the account… unfortunately ubank don't give brokers discounted rates and he didn't have them as a provider so had to cut ties….

    in the end its your money…and you're the one paying the loan off…
    depending on the service the broker gave you - it might be nice to call him to let him know…

  • Rumbaar on 18/05/2020 - 21:03

    If you still have a decent relationship with your broker, they should be able to do all the leg work for you. I too didn't need to use a broker in my loans, but it was easier to let them do it and cost me nothing. Though the second time wasn't as smooth as the first.

    But you shouldn't have any legal requirements to continue to use a broker.

  • onetwothreefour on 18/05/2020 - 21:47

    I used a broker to get my initial loan and then asked them about refinancing after 2 years but I found out that I could get better rates if I shopped around myself so I did.

    • Trying2SaveABuck on 18/05/2020 - 23:10

      Pretty much in my experince i could always get a better deal then what any broker offers…i literally think Brokers are simply a lazy tax how hard is it to make a few phone calls scan some documents and email them in? like 1-2 hours of work tops to save yourself a tone money

  • HeWhoKnows on 19/05/2020 - 08:23

    Your MB only introduced you to the bank Nothing more.
    End of relationship.

    Be a big boy and Go straight to the bank now

  • Harrow33 on 19/05/2020 - 08:26
    +2

    Thank you to Everyone for your informative comments.

    I'm going to call NAB today for a chat and if they offer a better deal I'll call the broker I used and thank them for their assistance in the past.

    If NAB wont move I'm going to do some more homework and then call the broker and have a chat along the lines of, I'm moving my mortgage if I can't improve the rate, what can you offer.

    It has been educational, thanks.
    Harrow

    • Aureus on 19/05/2020 - 19:17
      +1

      If NAB doesn't budge, don't make the mistake of being talked in to refinancing to another bank via your broker. Just do it yourself.

    • Baysew on 27/11/2020 - 13:55

      Any update with the outcome with NAB?

      • Harrow33 on 27/11/2020 - 14:55

        Yes, ended up at Qudos Bank, no broker. 2.64% very happy even though I could probably do better now.

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