Hi OZB. Starting the house buying process shortly, seems like everyone I speak to swears by the broker they used. Is it normal to speak to 2 or 3 different one, is it likely that one would have access to rates another doesn't?
Do People Usually Speak to 2 or 3 Mortgage Brokers?
ellave on 04/02/2021 - 08:53
Comments
I've used two previously.
First guy (from Aussie) did his job but not to the point where I had any desire to use him again afterwards. I was also inexperienced at that time.
Second guy, whom I'm currently using right now as I just bought a PPOR, is 10x more sophisticated in his approach and has setup a loan structure for myself that the first guy wouldn't have been capable of doing.
Thanks, looks like i should reach out to another one at least
Weird, I am the opposite - I wouldn't go near the broker I used with a 10ft pole (although I think they are out of business now). Went direct to a bank on my last loan and will probably do the same next time.
Completely normal. Lots of banks.
If purchasing a house, look into www.beforeyoubid.com.au too. Get a building/pest report as quickly as 24 hours. Can even ask your agent to use this if you're selling/buying.
I've found nowadays it is so important to talk to a few brokers + have that report - feel more confident in buying/selling that way, and avoids issues with most real estate agents.
Broker here.
Very standard to speak with several brokers in the initial stages.
Once you're ready to proceed to an application you will need to commit to one broker only.
More.
You don't need to speak to a second broker unless the first one either you don't like or they can't find a bank that will lend to your circumstances
I would still speak to a second broker if it was my first time.
it's somewhat akin to getting a quote for repair.
just because you liked the first one they can repair it for you, doesn't mean you shouldn't at least do some due diligence and get a second quote.
who knows maybe the second broker you like just as much and they can find you a bank that can give you better rates and lend to your circumstances.
I spoke to one broker (from Aussie that serviced virtually all lenders) and I spoke to a few in-house lenders at the big 4.
It is worth the time to see what they offer, what you need to do / provide / prove.
The product they can provide across the board is generally the same, so what you'll want to look out for is the level of service they can provide.
From my experience, most brokers generally have the same number of lenders they deal with, and they all roughly pay about the same amount of commission to the brokers themselves. Generally, I would choose a broker based on recommendations from friends/families. See what kind of follow-up they provide, how quickly they respond to your enquiries, your first meeting would typically be about how much you can borrow… can they answer all your questions clearly and simply?… did they explain the buying process to you?, what about first home buyers grants?… do they have others they can recommend (conveyoncer, building/pest inspector etc.)….
mortgage brokers are a dime a dozen, so if you feel slightly put off, you can easily find another one.
it's pretty normal.
brokers have a different panel of lenders - so yes, different brokers different rates.
but it's not always about the rate. I like to have confidence that my broker will follow up issues in a timely manner and provide good customer service.