Home Loan Broker - Professionalism

djsydney on 03/08/2021 - 15:56
Last edited 03/08/2021 - 15:56

Hi All,

Long story :)

I contacted a broker from here for a refinance as the deal was a good one.

He also mentioned did talk to my existing lender if they can do any better and it was nothing close to on offer.

So I decided to go ahead and lodge the refinance application.

Everything was going well and the broker was good to talk to until I got a call from the retention team of the current lender.

They decided to match the offer on the fixed with cashback and better the variable part. It seemed no brainer and I accepted to stay with current lender.

This is when I let the broker know and he went berserk. He started talking about my integrity and character which seemed way off.

It didn't feel right and I did go back to him politely that yes he spent a lot of time but as a consumer I have a better choice.

Note: The new lender I was about to refinance is my current employer and he mentioned saying you must be a good employee.

The final message was - User and Abuser. Blocked. What does that even mean?

Am I missing something? I do value the time and effort the broker put in but does the above sound reasonable?

Thanks

Financial

Comments

  • ThithLord on 03/08/2021 - 16:01

    How much time did they spend on your application, communication etc?

    • djsydney on 03/08/2021 - 16:02

      We had some phone calls. All including less than an hour.

      About 10 email where I attached documents and signed forms.

      Not sure if I can a put a time on it.

  • [Deactivated] on 03/08/2021 - 16:03

    Which current lender offered you the cash back on fixed? I've been told by commbank I need to change banks for fixed. They matched the hsbc 1.88% for two years fixed, but couldn't come to the party with the $3k cash back.

    • djsydney on 03/08/2021 - 16:05

      CBA it is. Just to add the call came after I filled the discharge form. So might be a good idea to trigger that. You don't have to sign the discharge form if you don't decide to move. So you won't lose anything if you try.

      Again - I am not a financial advisor but just my experience.

      • [Deactivated] on 03/08/2021 - 16:05

        Ok, will do. Thanks.

        • djsydney on 03/08/2021 - 16:06

          Btw they offered 2K as Cashback. So not a full match but the refinance will incur fees. So technically it's a match.

    • djsydney on 03/08/2021 - 16:21

      I would say go with someone who has been referred by a friend or family who have used the services. I did that when I got my first loan and the broker was a treat to deal with.

  • bemybubble on 03/08/2021 - 16:22
    +4

    At the end of the day you've got to win and that's how it always will be. That being said if it were me I would have gone back to the broker to give him the opportunity to do something. From his perspective it would give him ammo to go back through his channels and say 'please explain'. If after that he can't match or do better then why jump?

    Out of curiosity was it a big difference in %? If it were chump change I would have weighed up the service level from the broker in my decision to stay or go too.

    • djsydney on 03/08/2021 - 16:25
      +1

      Great point there. I sent him a text to ask for advice ( I didn't accept the offer straight away). I didn't mention details but I said I wanna discuss. And that's when he started ranting and spoke with a lot of rudeness.

      Basically didn't give me a chance to talk on phone and finished everything on chat.

      • bemybubble on 03/08/2021 - 16:28
        +1

        Look - brokers get paid by the deal not by the hour (be careful what you wish for with the royal commission), so I can understand why he'd be pissed. Though that's the nature of the business.

        If that were me I would have been channeling my anger to my aggregator demanding how this could have happened. As that effectively means their cashback deals are worth jack(profanity)

        • djsydney on 03/08/2021 - 16:29
          +1

          Agree. Thanks for the advice mate.

  • tsunamisurfer on 03/08/2021 - 16:42
    +3

    A service provider like a broker should never abuse a client / ex-client, it is just plain unprofessional. You can simply block an ex-client and thats it, abusing them and their integrity is just wrong.

    I can also sympathise with the Broker.

    He has done everything right up until then, including expecting your current bank to counter and posing the question for you with them, WHICH would not have got him paid.

    • djsydney on 03/08/2021 - 16:50

      Appreciate the response. Thanks mate

  • Ocker on 03/08/2021 - 17:44

    Rule number one in life - NEVER trust a broker. Be it real estate, finance, insurance, motor vehicle etc etc. They are only in it for #1 - and it aint you!
    Clearly your mortgage broker had more to personally gain by taking you to a new lender

    • djsydney on 03/08/2021 - 17:55

      Thank you.

    • spal on 03/08/2021 - 18:05
      +1

      Everything in life, people usually are in it to look at their best interest. As a home owner, I will go to the broker because I want a better rate, and a broker will accept me because they want to get my business and make money. In this case as @tsunamsurfer said, broker did do the right thing without expectation of anything in return. Brokers, and all other professions you mentioned are trying to make a living. As long as both parties are clear about the relationship, and treat each other with respect, that is where it should end. Painting everyone in the profession is the same light for few black sheep is not fair.

      BTW, I am not from any of these professions, and don't have anyone in immediate family or friends. In fact I had a dishonest RE broker sell us our first house. But, all others I have encountered have been good.

      • djsydney on 03/08/2021 - 18:36

        Agree. I did have a good experience when I got my first loan. So definitely not everyone is the same.

    • bemybubble on 03/08/2021 - 19:29
      +5

      NEVER trust a broker. Be it real estate, finance, insurance, motor vehicle etc etc.

      What a rubbish statement. My finance broker has been nothing but awesome. My insurance broker is legit an absolute legend.

      I’ll warrant the fact that real estate agents can play dirty. But don’t stereotype. That’s just ignorant.

    • Indomietable on 04/08/2021 - 00:08
      +2

      This is bad advice. My rule is trust but verify. You cannot grow fast if you have trust issues. Just because you have bad experience with one doesn't mean they all bad.

      Good mortgage broker will tell you to take the deal if it's good deal even after spending time with you. I find that they in it for the long run.

      • Sweetnsour on 04/08/2021 - 10:44
        +1

        Agreed. Trust is a measure of a successful society. Lack of trust causes chaos in economics and no one thinks long term. However do consider other factors such as conflict of interest, referrals from your friends, years of experience and from there you get value. In the end it's always do your own research rather than blindly believe or reject.

  • deme on 03/08/2021 - 17:48
    -1

    OP name them or go away

    • djsydney on 03/08/2021 - 17:55
      -2

      Sorry mate. That wasn't the intention and I would never do it.

      • deme on 03/08/2021 - 18:13
        +12

        User and Abuser. Blocked.

  • Platinumtelecom on 03/08/2021 - 18:28
    +2

    Obviously he isn’t worried about receiving negative online feedback. Odd

    If he doesn’t want to “waste time” it’s up to him to have a close for a cancellation fee of some kind if he wants to.

    Not your problem, that’s his job. He couldn’t get you a deal as good as you did by yourself, therefore he didn’t do his job.

    • djsydney on 03/08/2021 - 18:34
      +1

      I didn't want to go online to give the person a negative PR. It was my first time refinancing and I wasn't sure if I had a obligation to go with broker once it's approved(conditionally).

      I just wanted to know what I did was the right thing or could have done anything better.

  • Drifta on 03/08/2021 - 19:11
    +3

    There is no obligation to go with a broker, but you certainly dont want to be wasting their time by shopping around after you've engaged them to do a lot of work. Shopping around at the start is expected and should be done to ensure you get the best deal.

    This broker is an idiot for going off at you as you are never going to go back. While new business is great, it is often repeat business that brokers make money from. You may not proceed with him this time but maybe you will refer a friend thinking of refinancing or you will go back to him in 1-3yrs.

    The brokers offer to ask if your current bank will price match while well intentioned clearly didnt deliver results and you were able to, so yes the broker didnt do his job well / doesnt have the right relationships with the banks business development arm which is the real issue here. Also possible he just told you what you wanted to hear but didn't actually try and get you a better deal with current provider and went straight to a new loan so he could make money.

    The brokers make their money from every new loan they sign. If they could they would make everyone refinance every year as that's where the bulk of money comes from. The trailing commissions also help. However, a good broker will be honest and work for you to get the best deal, even if it means not getting paid as you may refer other people or go back to him for future needs.

    • djsydney on 03/08/2021 - 19:24

      Thanks for the reply. A valuable lesson learnt and yes understand his frustration as well of losing business. I actually referred him straight away after hist first call to a friend.

      And plus I had not the slightest of idea that banks re-negotiate after my first interaction. I was flatly told they cannot do any better and hence I moved forward. Another lesson I guess.

    • Ughhh on 03/08/2021 - 20:22

      This broker is an idiot for going off at you as you are never going to go back.

      Given that the broker said

      The final message was - User and Abuser. Blocked.

      It sounds like the broker does not want OP as a customer in the future anyway.

  • valleyrain on 03/08/2021 - 19:14
    +2

    Out of curiosity, what was your loan amount approximately? As others have said, I can sympathise as he might have pinned his hopes on a big payday with your loan and you have now crushed it.

    You say you had about 10 emails back and forth where you attached documents and signed forms. That sounds like a lot more time than an hour for processing.

    • djsydney on 03/08/2021 - 19:26

      The Loan amount was $600K+

      I didn't mention the time he spent. I only mentioned the conversations happened. I am sure they would be more than an hour.

  • SF3 on 03/08/2021 - 22:25
    +1

    Glad the broker wasn't a friend / family - imagine the fallout. Otherwise it's just business win-some lose-some.

  • eddieboy2 on 04/08/2021 - 08:16

    I think the broker was right to be upset. He spent a lot of time to find you a great deal. My personal view is I would have stuck with him because if he hadn't found you such a great deal you would still be on your old rate. Think it gets back to personal integrity.

  • MontyMacaw on 04/08/2021 - 08:36
    +1

    The market decides. End of conversation. If the broker’s business model is to abuse unsuccessful jobs we can all see where they will end up. They had a chance to go one better if they really wanted the commission but chose the low road. Move on and don’t let their whiney ramblings bother you. It’s no different than going into one shop to look at a product and then buy it elsewhere. The first shop had their chance to get your business but failed. Both shops have overheads to allow you the option just like banks and brokers have overheads.

    • djsydney on 04/08/2021 - 08:38
      +1

      Thanks mate. I had a similar thought when the counter offer came. I did try to reach out as I have told before but wasn't heard.

  • tabitha731 on 04/08/2021 - 08:42
    +2

    Im kinda in the same boat, i enlisted a friend who recently became a broker, zero experience in mortgages, but then again, im always keen to give people a fair crack, given he works for a larger company that would ensure he does the right job for me. But his overzealousness and calling at odd times of the day is wearing thin, so im glad i also enlisted my credit union to look into a loan for me. And communication with my bank is much more calm and i respond at my convenience via email.

    Bottom line, dont worry about hurting the feelings of a broker, they’re only in this for the commission they’ll get. They are very similar to recruiters, very few actually have the skillset to be in that job, and integrity.

    • djsydney on 04/08/2021 - 08:43

      Great advice. Thanks for sharing

  • marsking on 04/08/2021 - 08:50
    +1

    From my own experience only. I've once contacted a broker who advertised on Ozbargain and found him very unprofessional. He briefly asked my finance situation and concluded I wouldn't get a loan of that size. He also agreed to send me some comparison offers via email, which never happened. I ended up searching myself and knocked off a much bigger loan size with better rate.

  • Str8up71 on 04/08/2021 - 10:00
    +2

    As someone who is a Finance Strategist / Broker (almost 20 years and Banker over 7 years prior) I don't believe the broker's response is reasonable, let alone professional. Having said that, your experience is not necessarily the norm and those who work in the Banking and Finance Industry shouldn't all be tainted with the same brush. Our Industry is bound by "Best Interest Duty" and related ASIC obligations which are designed to ensure that clients receive appropriate, relevant advice and that we act in our client's best interests. Our company will always provide clients evidence of this in actual dollar terms as well as how we are meeting your objectives, needs and requirements. Even after we've done the work, client's are not obligated to proceed with us although more often than not we have expended at least a full 8 hour day in credit policy research, lender negotiation, product comparison, mandatory compliance documentation, application preparation, lender submission notations etc. Furthermore, even when our clients do proceed with us, if they were to pay out their loan(s) within 12 months of settlement (loan funding), whatever commission we have received on this is to be repaid back in full to the lender. Between 12 months to 24, this "clawback" of our commission is reduced to 50%. These remuneration conditions I believe are unique to our vocation. But I, like many others have chosen to work under these conditions and genuinely attempt to assist our clients by improving their current and future financial position. Feel free to reach out…

    • djsydney on 04/08/2021 - 10:02

      Great response. Thanks for the insights

    • BinkyG on 04/08/2021 - 21:09
      +1

      Are you able to assist with the new single parent home loan scheme?

      • Str8up71 on 08/08/2021 - 13:33

        Hi sorry for the late response as I'm not typically on this forum. I can assist you with your enquiry so feel free to contact me on 1800 952912 - thanks.

  • Str8up71 on 04/08/2021 - 10:44

    Any time ;)

  • Refinancerloans on 04/08/2021 - 15:54
    +2

    As a broker this happens and is frustrating but we need to take it on the chin. The broker's reaction was absolutely unreasonable and stupid, this behaviour is never warranted and honestly a one in a thousand situation.

    The likelihood is that they did put in a good 10 hours of work on their end that they would not be remunerated for. As long as you gave the broker a fair chance to beat the deal I would say you did nothing wrong. If they did provide a solution that was on par or better than what you were offered I would say the ethical thing would be to respect the broker's time and continue. This would also show great trust, honesty and respect in each other which could be invaluable over the next 10 - 20 years.

    As much as we give 100% to all our clients, we really put in that extra effort to those who demonstrate respect and honesty!

    • djsydney on 04/08/2021 - 17:20

      Thanks for the response. Yes I did try to give him a chance. But it wasn't heard at all.

      • Refinancerloans on 04/08/2021 - 17:26

        Then that is fair, if he cannot come to the party to win your business then you are within your rights!

  • Actionman77 on 08/08/2021 - 22:33
    +1

    As a tradesman, I spend many, many hours of unpaid work quoting, often without success…..can't see how this scenario is any different.

    Cost of doing business.

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