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Using brokers is a growing trend as they now arrange over 53% of new home loans. Why? People are seeing the benefits of having a professional on their side.
A GOOD broker is an order maker, not an order taker. They LISTEN to who you are and what you want, then TAILOR the right package for you. That means the RIGHT structure, RIGHT rate, RIGHT fees, and GOOD ADVICE.
Read on for more on why home owners and buyers are getting on the broker bus, and find some tips on what makes a GOOD one.
We work for YOU, not the Bank.
It’s a completely different paradigm. When I worked for a bank, I was under pressure to make money for the bank. Now I’m a broker, my total focus is to save money for my clients. The more I do that, the more successful I am.
At the banks it was frustrating to be confined to one bank with its limited products, rates, credit policies, and profit targets. Regularly butting heads with the brick walls that say “we can’t do this” or “we can’t do that”.
Now as a mortgage broker I don’t have that problem. If I present a deal to a bank and they don’t like it, no problem, there are plenty other lenders to talk to.
Getting great deals for my clients is the secret to my success because most of my clients hear about me through people I’ve already helped.
Furthermore, this isn’t a stepping stone in my career path. I’m building my business brick by brick and I’m building it to last. So I treat people like clients, not transactions. I’ll discuss their longer term objectives and advise them on their path to get there. And I intend to be here to see it through.
The Best Deals at Our Fingertips
You want the best variable rate for a $500,000, owner occupied, P&I loan? Bang! Within seconds I’ll find it. The same goes for any loan amount, fixed rates, investment loans, interest only, with or without offset, construction …
That’s because I have access to a continually updated database of all the loans on offer (with the exception of a very few). I just enter the criteria and it ranks the loans on offer by interest rate and gives me the info on fees, product features, and promotional offers. We’re talking hundreds of loans from over 40 lenders.
I also know which banks can negotiate better rates, and will do so on your behalf.
What is loan structuring you ask? Well, here are some things that can form part of your loan structure:
* Principal & Interest vs. Interest Only.
* Variable or Fixed Rates.
* Split facilities (part fixed, part variable).
* Offset accounts and/or redraw ability.
* Packages (annual fee for a range of benefits).
* Construction loans, bridging loans, lo-doc, family pledge guarantee…
* Multiple properties: Stand alone security or cross collateralised; Multiple banks.
The good thing is you don’t need to know the ins and outs or pros and cons of all of these features and aspects. If you have a good broker, they’ll know which are important to you.
A good broker will take the time to understand your circumstances and objectives, and advise you on the loan structure that will best achieve your goals.
Saves you Time and Potential Heartache
A good mortgage broker doesn’t just know the best deals; they also need to know the banks’ credit policies. There’s no point in recommending a great loan if, for one reason or another, the bank isn’t going to approve it for you.
So a good loan recommendation is as much about knowing the banks’ credit policies as their interest rates, fees, and loan features. They should identify any potential pitfalls in your application and check with the bank before making a recommendation.
We have access to the bank’s loan servicing calculators and their credit policies. And if there’s still something we’re not sure about, we have access to bank representatives who can give us the answer.
Sometimes we can adjust the structure of your loan to make it work, and other times we have to find a different lender with the right policies for your particular circumstances and objectives.
So we won’t waste your time, build up your hopes, and potentially degrade your credit history with a loan application that’s doomed to fail. We’ll do the homework first and everything possible to make it succeed.
Paperwork, Follow-ups, and Leg Work
Your broker is your single point of contact. They’ll submit the application on your behalf, track and follow up its progress, liaise with the bank’s various departments (assessments, documentation, settlements), and external people (valuers, conveyencors, builders, accountants etc).
In essence, they do the leg work to keep the ball rolling, so you can relax in the knowledge that it’s being taken care of. Your broker should be updating you as your application progresses – and if they don’t, well, you have their mobile number :-).
If this article has been helpful to you, don’t forget to share it with your friends. And if you’d like to get a professional on your side, just drop us a line.
Principal, Redlands Mortgage Solutions
Helmut has a Bachelor of Business and Diploma of Finance and Mortgage Broking and came from an extensive banking career before establishing this broking business in 2011. if you're looking for someone who has a good understanding of banking, the tenacity to get the best deal for you, and the heart to help, please give us a call!
Feel free to contact Helmut directly to see how we may be of assistance :
07 3726 5356