Should I Get Mortgage Broker 'Quotes'

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  dmbminaret on 21/07/2021 - 18:01

  +3

  They will vary by what lenders they are 'attached' to. That will determine what they can offer you. Not so much a quote, as what they can deliver you and your borrowing capacity with such lenders.

  Definitely use a broker. They do all the lifting and usually know their craft.

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  everydollacounts on 21/07/2021 - 18:03

  I was worried that I only had 6 months in my new job so I went through a mortgage broker. They gave us a 5 options and they had a comparison table (rates, total interest, with offset, fixed, variable). They recommended a bank with a low interest rate, but the comparison rate was really high. Ended up getting the one with the lowest comparison rate plus an offset account and went directly with them instead. They're a good use to help you save time looking around but it is more convenient to deal directly with the bank. No more third-party delays when sending through documents.

  • 

    sigh on 21/07/2021 - 18:10

    +5

    Be careful when looking at comparison rates. They are based on a $150k loan including all fees and charges.

    If you have a large loan a lower rate can outweigh higher fees and charges making the loan cheaper in the long run then taking a higher interest rate with low fees because it has a better ‘comparison rate’.

  • 

    bar-gainz on 21/07/2021 - 18:13

    Thanks for the reply.

    Did you consider checking with more than one Broker?

    How did you know that Broker was going to provide you best rate and best service?

    • 

      sigh on 21/07/2021 - 18:23

      +2

      There’s no harm.

      Sometime’s it’s about how well you get along with the broker and they understand your financial position and what you want from the loan package you’ll be signing up for.

      Different brokers will have different relationships with different banks, they may all get the same rates or one might be able to squeeze an extra -0.05%. One might know about a loan package that suits you that another doesn’t know about.

      You’ll need to know what you want to get the best loan that will meet your needs and requirements.

      A quick google and use of those comparison tools/websites can tell you in a pinch what the best rates are, but you have to qualify for them too so need to understand that. The best rates would be achievable if you LVR is +70% lower and you’ll have to compromise.

    • 

      everydollacounts on 21/07/2021 - 18:27

      The broker was recommended by a family friend but the service was terrible. They make commission so don't feel bad taking their time. Also get them to explain every detail until you feel comfortable with it.

      I did consider looking at other brokers but my requirements for the loan was simple, an offset account with low variable rate and low to no fees. As soon as you sort of distinguished which ones you need, just go directly with the bank. I say bank because I weirdly don't trust standalone lending companies for a 30 year loan.

• 

  holdenmg on 21/07/2021 - 18:18

  +1

  Are you going to live there or Rent it?

  If an Investment Property, are you going to Tenant it while you Reno?

  • 

    bar-gainz on 21/07/2021 - 18:34

    I plan to live there, so it will be owner occupied.

    The renos are extensive, but I should be able to live there while it's happening.. at least that's the plan.

    I think my needs are fairly simple, I've for around a 25% deposit and I'm PAYG.

• 

  this is us on 21/07/2021 - 18:41

  +1

  I used Mortgage Pros and was very happy with the results, particularly after comparing other options.

  This one doesn't charge you anything directly. They try to find the best mortgage for you based on your situation, considering more than 40 lenders. Then, they give you the three or five best options and you make your decision. No obligation. No fees if you don't use their options.

  They get their money (fees) from the lender, which is very clear in the contract you sign with the lender, not from you. No surprises, no hidden fees.

  Very professional service, ti was my first mortgage and they helped throughout the process. Highly recommended.

• 

  Seraphin7 on 21/07/2021 - 19:19

  +2

  Let me ask that another way, is there any benefit in seeking 'Quotes' from multiple Brokers?

  Yes, not all brokers will have access to all lenders.

  If you have a case that has any complexity in it, your choice of broker may be the difference.

• 

  tamckinnon on 21/07/2021 - 20:21

  +1

  I've been looking (and bidding) on property in Melbourne for the better part of a year now.

  When we started last year we wanted to sort out finance as soon as possible, a friend suggested a broker who helped them but we stipulated that speed was of the essence (for us at the time) so they used their tiered up partnership with a bank to log a application as it would be processed quicker then going direct and my partners new job would be easier for approval.

  4 weeks of emails back and forth requesting more information and for me to continuously fill in all these forms I said stuff it and went with the bank direct. I had approval sorted within two weeks and still waiting on information from the broker at week 6.

  If you've had solid employment PAYG for 12+ months, 3+ months of genuine savings for your deposit (explainable income and no family "gifts") just pick one of the large lenders and go from there.

  Edit: Forgot to add, I found this after I was pre-approved but there's a comparison website here where the lenders will bid for your business https://www.joust.com.au/

  • 

    bar-gainz on 21/07/2021 - 21:18

    Thanks for the info, that joust website looks interesting, I'll definitely check that out.

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  FareEvader on 21/07/2021 - 20:26

  +1

  You don't NEED a broker unless you're extremely time poor or lack the fundamentals of personal finance.

  Nothing wrong with going to see multiple brokers to see what they can offer, but ensure you don't apply for a loan with all of them because that will mean multiple credit checks on your file.