[AMA] I'm a Mortgage Broker, I Like Saving Myself and Others Money! Ask Me Anything!

Lmortgagebroker on 22/10/2018 - 19:14
Last edited 22/10/2018 - 22:20

Hi all,

I'm a mortgage broker, have been in the mortgage industry since 2012.
Don't like seeing poor advice or bad deals so decided to jump on here and make a post and help out when I can.

I'm the kind of mortgage broker that informs my customers of the eBay Good Guys special to upgrade their whitegoods.

Here to answer any questions you have about your home loan and mortgage products.

Comments are general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice.

Introduce Yourself

closed Comments

      • belongsinforums on 25/10/2018 - 22:18

        Very helpful. Thank you. I thought 10% was standard for a home loan

  • gstfree on 25/10/2018 - 18:24

    1. I am currently on 3.69% variable owner occupied, no on going fees with fully offset account. Is there any better product in the market?

    2. What are the benefits broker compare with approaching to lender directly?

    • ohsotight on 25/10/2018 - 19:47

      Which bank are you with to have an offset account without fees? Is it standard form or negotiated deal?

      • gstfree on 26/10/2018 - 22:11

        Please try Firstmac - it has a subsidiary loans.com.au offers great rates.

      • gstfree on 26/10/2018 - 22:12

        I remember it's 0.02% or 0.03% below the special advertised rate.

    • mortgagebroker on 25/10/2018 - 22:46

      1. 3.69 is great. maybe 3.59 with something like ubank.

      2. hey will research the market, compare rates and negotiate the loan on your behalf, helping you secure the best loan to suit your specific requirements. Hold your hand through to settlement.

      People don't realise how much damage they can do by being put in the wrong loan; or how much money it can cost them.

    • mortgagebroker on 26/10/2018 - 00:39

      Missed the offset comment.
      3.69% with offset and no ongoing fees is great.

      I have 3.64% with offset for $10 a month
      and 3.67% with offset for $10 a month

      • gstfree on 26/10/2018 - 22:11

        Thank you so much for your reply, very much appreciated.

  • SeVeN11 on 25/10/2018 - 18:46

    I noticed a lot of banks are no longer lending to serviced apartments (e.g quest or mantra serviced apartments) or reducing the amount the lend. Down from 70% to 50%

    This in turns makes it significantly harder for buyers wanting to buy this type of investment harder and hence the price falls to meet.

    So my question is, the net rental yield are very good now and Banks will easily lend up to 50%, but I want to know which lender will lend more than 50% so that I can buy more.

    • mortgagebroker on 25/10/2018 - 23:06

      Needs to be able to be removed from the rental pool within a maximum of 4 months if needed.
      Max 70%.

  • ohsotight on 25/10/2018 - 19:04

    Any good cashback or promo offers from the big 4 at the moment?

    • mortgagebroker on 25/10/2018 - 23:11

      St.Geroge Bank - $2,000 Refinance cashback* - Offer available until Monday 31 December 2018 and can be varied or withdrawn at any time
      Bankwest - $1,500 cashback for new home lending* - Promotional Period: 17 September 2018 – 30 November 2018

      Both are owned by a major.

      • hhbb555 on 30/10/2018 - 11:59

        what are the variable interest rates for both?
        cashback offers do sound nice!

    • mortgagebroker on 26/10/2018 - 00:16

      NAB - $1250 Bonus with an Eligible NAB Home Loan Banking Bundle* - Apply by 2 December 2018

      They have a great 3.69% special as well.

  • fab boy on 25/10/2018 - 20:04

    Wife said we should contact the bank directly to get the better loan/rate rather through the broker, is that true?

    • mortgagebroker on 25/10/2018 - 23:16
      +1

      I tend to get better pricing than my customers if they do it themselves.

      • fab boy on 26/10/2018 - 15:20

        Cheers mate. I'll show this to her!!!

  • Soluble on 25/10/2018 - 20:48

    Probably one of the best AMAs I've seen on ozbargain, well done. It's also good to see people asking questions they've potentially been too ?scared? to go ask in person.

    After my last couple of broker experiences, I will never do anything without one.

    • mortgagebroker on 25/10/2018 - 23:20

      We always hear the bad stuff. Great to see you've had great experiences using brokers!
      Didn't think I would be answering so many questions.

  • User102430 on 25/10/2018 - 23:03

    Just curious, is the current market situation (sliding prices) affecting you, your job or your income in any way?
    Things get better/worse, easier/harder to get the mortgage, more/less competition on the market?
    I'd appreciate some general thoughts on this, thanks.

    • mortgagebroker on 26/10/2018 - 00:03

      Not really, I'm on the Gold Coast so not noticing it like brokers in Melbourne or Sydney may be.

      It is getting harder to get a mortgage, more work required. More competition from online lenders.
      Brokers now write ~54% of all loans.

  • bargainhereicome on 26/10/2018 - 02:04

    wow, interesting to see so many people still able to get variable rate below 4% , mine increased to variable 4.21% recently. Owner occupied house,i refinance to suncorp's "special" at that time when it was posting here in ozbargain few years back. Free offset acc, no annual fee, free platinium credit card with points. worth for me to refinance? still have around 450k to pay and house worth around 550-600k.

    • mortgagebroker on 26/10/2018 - 11:11

      Yes, I would look at refinancing.

      If you can take off a 0.4-0.5 off your rate you will be savings ~2000 a year which will cover your costs in the first year. Every year after is savings.

      PM me if you want me to look more into your options.

  • kaleidoscope on 26/10/2018 - 06:18

    Whats the best advice you can give for first home buyer in terms of home loan packages? For example go with or without an offset account. Or anything in particular to look for when choosing from different packages?
    Also can a broker beat rates for a someone with employ benefits? Employ benefits may includ things like waiving lmi, lower fees, etc.

    Thanks

    • mortgagebroker on 26/10/2018 - 11:14
      +1

      Depends on the client. The advice I give to one first buy could be very different from the next first home buyer.

      You need to consider all lender. There are great deals out there which can usually beat the Employee Benefits offering.
      Ask a broker before you take out the loan through your employee benefits.

  • Hellfire on 26/10/2018 - 09:31
    +2

    Most important question.

    How many leads have you got from this thread? :)

    • mortgagebroker on 26/10/2018 - 11:05
      +9

      Not enough with the number of questions I've answered, lol.

      • Hellfire on 26/10/2018 - 16:46

        You probably only need to pick up a couple of loans to make it worth while.

        Thanks for answering all the question anyway.

  • lephu20 on 26/10/2018 - 11:26

    hey buddy.

    Thanks for your kindness.

    I have two investment properties under my name , 1 is established with an amount owing to ANZ 300k ( I am liable for 150K)

    The other one is being built with progressive payments to ANZ, Once completed we'll owe them 250K( my personal investment)

    Question is : is it possible to top up or to refinance on the 2nd one so that I can pay $150k on the first one.? is there anyway?( selling the first one is not an option).

    Sorry for the poor English &
    Thank you again ( if its possible you can do this for me as well ) :)
    Kind regards

    • mortgagebroker on 26/10/2018 - 13:39

      I will require more information on this.
      You can refinance/top up to pull cash out to pay down the other, depends on the lender and your situation.

      PM me if you want me to look into it.

  • pformag on 26/10/2018 - 12:09

    I currently am with Westpack Rocket Repay Home Premier Advantage. When I signed up, they offered me a 1% discount off the variable rate for the life of the lone. At the moment it is 3.58% discounted. Do you recommend staying at this rate?

    • mortgagebroker on 26/10/2018 - 13:40

      Taking only the rate into consideration. Yes, 3.58 is an awesome rate.

  • Keeegs on 26/10/2018 - 12:23

    I'm with Suncorp at 4.32% now, any tips on going to them and ask for lower rates or I leave?

    • mortgagebroker on 26/10/2018 - 13:42

      Call and ask.
      Do some research and find out what you're eligible for. Go to Suncorp and say you can get better with "Bank/Lender" is it possible you can help reduce my rate.
      They should reduce it by something.

      If you're not happy with the rate. Leave.

  • croatiantor on 26/10/2018 - 12:44

    Thanks for the AMA it has been great reading.

    What is the best option for a P&I loan with an Offset account at the moment?

    Looking to refinance from a Westpac Investment only loan (Was a construction loan) to a P&I loan with offset. Loan Amount $414k

    Things I have seen.

    ING 3.69%?

    NAB Choice Package 3.54% once discount applied $395 annual fee (Offset not specified tho). +$1250 Signup Bonus?

    Very interested to hear back from you! Thanks :)

    • mortgagebroker on 26/10/2018 - 14:22

      ING is a good deal.
      NAB Choice Package already has the discount applied, so you've applied it twice to get the 3.54% rate. Sorry to disappoint.

      PM me if you want me to look into it for you.

  • brauhem on 26/10/2018 - 13:49

    Thanks for the read.

    Purchased in 2014 with my folks as guarantor for $459k with 100% lending.
    Currently owe $383k, but with the market in Perth it is worth at best $400k now.

    Ideally I want to get my folks out of being guarantor just for their peace of mind. Neither of us are too concerned over a doomsday scenario.

    Financially I am fine, we have $36k redraw and a combined income of $207k pre-tax since myself and my wife are both in better/qualified jobs now (combined income doubled 18months ago). 0 other debt. 4.51% interest rate which isnt ideal but I know we arent great candidates due to LVR. Ideally we were hoping by now that with our extra repayments our LVR would have been at 80% but we can't control the market.

    Do I have any options of refinancing or should we just plug away for another year and get it down to $330k first?

    • mortgagebroker on 26/10/2018 - 14:25
      +1

      You maybe able to get a good valuation from different banks.

      Bank 1 gives 400k
      Bank 2 gives 430k
      Bank 3 gives 405k

      Talk to a broker.
      They will help you solve this sooner. PM if you want help.

      • brauhem on 26/10/2018 - 14:30

        Will give it a shot, Domain has it at $415k but a good friend is a CPV and thinks more $400k.
        Fully renovated (am a licensed a builder) since I bought it so fingers crossed.
        Thanks

  • Ughhh on 26/10/2018 - 13:58

    If refinancing a property with a small common area, will the lender require a certificate of insurance for the common area (shared between 3 properties)?

    • mortgagebroker on 26/10/2018 - 15:52

      Not sure. A query I would take up with each individual lender. Have you had an issue with this in the past?

      • Ughhh on 26/10/2018 - 17:11

        I haven't yet, but I looking to refinance, not sure if it's common for banks to check.

  • JPerez on 26/10/2018 - 15:13

    How does one become a Mortgage Broker and how old is too old to be one?

    • mortgagebroker on 26/10/2018 - 15:55

      See new brokers of all ages. Never too old.

  • kooka35 on 26/10/2018 - 23:39

    Cuurently have investment loan from CBA of $330k with the brand new rate of 4.71% (wealth package)
    Property is in NSW eastern suburbs with a value of $1.2 - $1.5m , say at least 70% equity.

    What can you offer

    • mortgagebroker on 26/10/2018 - 23:45

      Principal and interest, interest only? Offset account?
      4.71% is not a good rate. Call CBA and ask for a reduction.

  • kooka35 on 26/10/2018 - 23:48

    P&I plus offset facility , not really using offset.
    Making $3k monthly payments to reduce term to 11 years
    Asking CBA is like talking to a wall , been with them for 10+ years need to move on

    • mortgagebroker on 29/10/2018 - 10:38

      If you don't need an offset you are looking at something like 3.69%.

      Contact me if you want to refinance.

  • justwii on 27/10/2018 - 13:39

    Just to get the expectation right, what kind of service should I expect to get from brokers?

    Give me the same rate as the banks are offering? Or should I expect there must be some broker special rates?

    Tell me what I can read myself on various bank websites and ask me to choose? Or should I expect a comprehensive comparison chart across >20 banks done by the broker based on my situation and work out the best option for me?

    Grant me a loan when the bank normally should? Or should I expect a broker can grant me a loan even when a bank normally rejects or rejected?

    Also, what should I expect more from a senior broker than a junior?

    • mortgagebroker on 29/10/2018 - 10:49

      A broker will help you through the process and fight for you to get the best deal.

      Brokers will get the same rates the banks are offering. Most people don't know what the banks are offering, or the specials they have. In most cases you will end up with a better overall product going to a broker.

      I won't give you a comparison of 20+ lenders. I will give you say 3 options after figuring out what you want and eliminate the poor options.
      At times some borrowers might only have access to minimal products, I find these options for them.

      I can't grant you a loan when the bank normally would.
      Customers can be declined a loan if they don't know what they are doing where if using a broker may get it approved.

      A lot of senior brokers/junior brokers are just a title. don't expect much difference in service.

  • living4music on 27/10/2018 - 14:59

    Are there any lenders out there that still do Low Doc (or No Doc) loans?
    I originally went with Westpac Low Doc loan 10 years ago (they automatically switched to normal Full Doc loan after 2 years if they saw no issues with repayments) and still stuck with them now because I can’t change lender due to financial documents not good enough. I know their rate is higher than smaller lenders so I really want to switch. Offset account is not really important to me because I always have about only 5-10K sitting there. As long as I can switch to another lender with significantly lower rate (without going the Full Doc procedure) I will be super happy. Thanks

    • mortgagebroker on 29/10/2018 - 10:53

      Yes.
      None of the majors.

      Looking at rates starting around 5% up to 10% depending on your situation.

  • fozzie on 27/10/2018 - 15:40

    Hi, I recently switched to Cua (615k loan and house is worth at least 900). Anyway we got the rate of 3.65, however 3 months later they increased to 3.9. My broker then managed to negotiate 3.79. There are no fees , but I am pretty angry about it as we were promised a lower rate and they bumped up 3 months in! Is there a better product out there for us? If we switch I would have to consider the cost of switching though.
    Also current mortgage has 100% offset and 0 cost.

    • mortgagebroker on 29/10/2018 - 10:58

      I see this mentioned a lot.
      Loan rates go up and down.
      You cant be angry. You signed up for a variable home loan. All customers on that product would have had their rates increased.
      Take out a fixed rate next time.

      3.79 with offset and no fees is a great product.

      • fozzie on 29/10/2018 - 17:16

        Thanks mate. I know is variable. Just angry at the fact they are offering the old lower rate to new customers.

  • MechEng on 29/10/2018 - 17:19

    Hi mate, thanks for the AMA, very interesting read.
    I have a question in regards to equity loans.
    My story is as follows : My wife and I purchased a townhouse in Brisbane 3 years ago,we are with ING. Now we have the amount of the loan sitting in the offset, so we are basically not paying interest.

    We are now looking to buy another house to live in and use this property as an investment. Let's assume that we pay off this property, how do we get a loan using the equity of this property? Can you explain how does this type of loan actually work?

    Is this a good strategy?

    Originally I used a mortgage broker, but I am not satisfied with his service, as I ended up finding ING (he suggested Suncorp) here in Ozbargain.

    Thanks mate

    Cheers

    • mortgagebroker on 29/10/2018 - 18:57
      +1

      Make sure you get advice!

      If you have an unencumbered property and then take a loan out on it for your deposit on the house you will live in, the purpose of that loan is NOT for investment. So you will have no loans which you can claim tax on. Not a good result.

      Say you have 300k owing on the current property and 300k in offset. You then convert this property to an investment property and used the 300k in the offset as your deposit on your new house.
      You can now claim tax on the repayments of the 300k loan for the investment property.

      Please PM if you require more help.

      • MechEng on 29/10/2018 - 22:17

        Thanks for your answer. I want to understand, if I take a loan using he equity, does that mean that I can take 100% LVR usingmy equity on the other house as a collateral?
        Thanks

  • X200T on 29/10/2018 - 22:46

    Approx what rate do you have for investment loan with P&I vs Interst only at the moment ?

    How much different in rate usually if offset feature added?

    How often do you think we should call the bank to negotiate better rate again?

    Thanks your help in advance!

    • mortgagebroker on 30/10/2018 - 13:05

      Invesment P&I = 3.99
      Investment IO = 4.18

      add around .1 for offset but depends on lender.

      Every every 12 - 24 months

      • OzFrugie on 30/10/2018 - 23:21

        how about PPOR IO variable with offset?

      • sagrules on 06/11/2018 - 13:39

        To negotiate a better rate with the bank do they need to do a check of anything? Do you have to resubmit documents etc.

  • hhbb555 on 30/10/2018 - 12:02

    if i put multiple properties into the same lender (cross collateral), how hard would it be if for some reasons I need to sell one of the property?
    Do I need to move them to new lender(s) to untangle the loans first?
    I've heard that the lender could take the sale proceed from one of the property to pay for the other properties that are still in the loan.

    • mortgagebroker on 30/10/2018 - 13:10

      Not hard, If the properties valuations come in are the correct price.
      It gets difficult if the value of properties has decreased.

      If you want to sell one property, all properties must be valued to make sure you can pay down the debt associated with that property when you remove the one security you intend to sell. If not you may need to put in a large sum of cash to cover the debt or sell another house.

      This is why you need to contact a broker to discuss your best options when purchasing multiple properties.

      • hhbb555 on 31/10/2018 - 13:08

        thx!

  • X200T on 31/10/2018 - 14:22

    Does the loan size matter when try to negotiate better rate for current loan?

    • mortgagebroker on 31/10/2018 - 14:28

      You may have a better result with a larger loan.

      • X200T on 31/10/2018 - 15:13

        Just wondering, any difference if is multi loan with same lender then?

        • mortgagebroker on 31/10/2018 - 16:32

          Depends on the lender. Your aggregate/total debt can be taken into consideration.

  • mmd on 31/10/2018 - 22:47

    What is considered a good rate for an investment property loan of 500k? Interest only.

    • mortgagebroker on 31/10/2018 - 23:04
      +1

      4.3% and under

      • mmd on 31/10/2018 - 23:11

        many thanks

      • srsparky on 05/11/2018 - 17:52

        Argh… really need to sort mine out - 5.05% investment, interest only, variable rate…

  • LKJ899 on 03/11/2018 - 17:03

    I'm thinking to refinance my unit (PPOR) P+I (bought 3 yrs ago, 80% LVR, title and loan are under joint names). I plan to get a better rate, take out the equity to buy a bigger house, rent out this unit, buy a 2nd property.

    If I refinance now, is it best to change to investment loan and pay interest only? And do i split the loan to i.e. 60/40 so that the bigger portion is on the higher income earner? What benefit do i get if i structure the loan this way? What else do I need to consider?

    On a separate question, when i buy my 2nd property, does the loan structure affect on how much I can borrow? Let's say if part of the loan is investment (interest only) and part of it is owner occupied (P+I), do i get to borrow more?

    Thanks

    • mortgagebroker on 05/11/2018 - 15:33

      The money you pull out to pay for your new Owner Occupied will not be tax deductible as the purpose of the money is not for investment purposes.

      If you are buying in the next few months, refinance at the same time. Talk to your broker on the correct thing to do.
      Splitting ownership not 50/50 is up to you. Talk to your accountant or financial planner about this.

      You have a certain amount of borrowing power based on your income and expenses. Obviously, if you are not renting out the investment property you will reduce your income which will reduce your borrowing power.

  • sagrules on 05/11/2018 - 16:13
    -2

    Could you please reply to my thread?
    https://www.ozbargain.com.au/node/413978#comment-6546385

  • Godric on 05/11/2018 - 17:26

    Are Aussie Mortgage brokers good brokers?

    Or dependent on the individual?

  • hongtien20 on 05/11/2018 - 18:19

    I applied to refinance through a broker and got approval from the bank. Now they request to complete all the forms and provide supporting docs. However, my situation has change so I'm having a second thought of not going ahead with this. I haven't sent them back any signed forms. Will they charge me any fee if I'm not proceeding and walking away from this.

    • mortgagebroker on 05/11/2018 - 20:33

      If you haven't provided supporting docs it would only have been a conditional approval which doesn't mean much.

      You may have received a document from the broker called a "Quote". This may mention a fee. If you didn't receive one or it doesn't mention anything you will not be charged a fee. If you haven't been told there is a fee prior in writing, there is no fee.

  • Frankenbeanie on 06/11/2018 - 17:14

    Is there a max limit to how much money you can keep in an offset account ?

    i was using nab's loan calculator and they wouldnt let me add offset saving more than half the loan amount. i said i wanted to borrow 400k and was trying to add 300k in an offset account but the errror said add less than 200k.

    Thanks :)

    • mortgagebroker on 06/11/2018 - 17:20

      No limit in a full transactional offset account.

  • boomramada on 08/11/2018 - 08:34

    Is there is rate difference between interest only vs interest and capital? in major bank like commbank and anz?

    • mortgagebroker on 08/11/2018 - 10:48

      The rate of Interest Only products is higher than Principal and Interest products

  • birdnw on 09/11/2018 - 16:05

    What do you think about the Expect More home loan package from Bank of Sydney?
    We are looking to buy a house in the near future and are thinking about this package. Do you think it's any good? or do you have any other recommendation?
    Thanks

    • mortgagebroker on 09/11/2018 - 16:50

      Looks good, only up to 70% LVR though so will need 30% deposit. Will need a lot more information on your requirements to make a recommendation.

  • Lunarboogie on 11/11/2018 - 09:29

    This thread is gold. Thanks heaps. 2 questions:

    1. Owner occupied loans are cheaper than investor loans. Is there anything stopping me from buying an investment property but lying to the banks that I am living in it? How would they know - especially if I then move into it in 12-months time.

    2. If I get a great 12 month fixed loan with Bank A, can I refinance with Bank B afterwards? Is there a minimum period between refinancing loans?

    Ta

    • mortgagebroker on 11/11/2018 - 13:38

      1. No, but depending on the type of loan, it may change your borrowing power.
        The best option is to tell the truth. In your loan contract, it says you must tell the truth and inform the lender to any changes. It will also mention what actions can put your loan into default and can charge you penalty interest.
        TIP: Read your loan contract.

      2. Refinance as much as you want.
        Loan at 3.69 refinancing every year is probably worse than staying at 3.99 and not refinancing. So many idiots out there think they are getting a good deal yet they are paying massive fees and refinancing to often and it erodes any saying they may have had.

      • Lunarboogie on 11/11/2018 - 18:21

        Thank you on both answers.

        On Q2 - oh ok. I didn't realise banks could charge fees for exiting early on variable loans. I had assumed the legislation banned that. But maybe they have a little wiggle room left to discourage serial refinancers.

        • mortgagebroker on 11/11/2018 - 21:31

          There are no fees for exiting a variable loan early.
          The fees I am talking about are discharge fees, application fees, valuation fees, mortgage registration fees, yearly fee

          Simple example.
          400k loans refinance from 4.09% to 3.89%.
          0.2% of 400k is $800 of interest saved per year.
          If you pay $400 discharge fee and $400 application fee it will take you 12 months before you get in front.

          You see someone with a 200k loan refinance from 4.5% to 3.99% and pay $1200 in fees to refinance and add a $365% annual fee. This will cost them more but people still think its better cause the rate is better.

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