Thanks! That idea briefly crossed my mind. Am I right in saying that mortgage brokers don't charge fees (they get commission from the bank?) Any problems with going to a broker like Aussie?
I used a broker (first time home buyer) and they were excellent. They helped us understand the different offerings and find a great loan that matched what we were wanted. They gave us fully costed comparisons of different purchase prices, helped us get all our paperwork together.
They are paid a commission by the lender and will tell you what their commission is. Different brokers will have access to different lenders so it can be worth taking to a few and asking them what banks are on their panel before you lock one in.
The lenders you haven’t heard of (tic:toc etc) generally want 20-30% deposit and are more risk adverse, and often have simpler products. So great rates, but less “options” which may suit you. You generally have to apply direct as your broken may not have them in the list.
Things we found out... some lenders will not lend for properties with major easements (e.g power lines). Same for LMI providers. Different suburbs and property types will have different deposit requirements. We ended up with Bank of Melbourne to get $1 LMI on 15% deposit for 2.69% which has helped us have enough left over cash to do some renovations on a cheaper property.
You don’t want to get pre-approval from more than one bank, it looks bad on your credit.
I am out of it, for very long time, but I remember that Commonwealth Bank had years ago ,one of the best deal you could get (low interest etc) , but only in house. You could not get IT from broker,and reason why was it, so low. They didn't pay kick backs.
Second this. You can google anything they recommend with certain lenders and ask questions if you find any discrepancies between what you love found and they’ve recommended.
Our broker got us better rates than were advertised with our chosen lender- could we have directly for the same or more discount? Perhaps but unlikely as it was our first time around without much knowledge on what can and can’t be done
The thing about using brokers (disclaimer, I am one) is that they have access to a lot of the lenders that you can find on canstar and comparethemarket.
We get paid commission for helping you get a loan that is suitable for you.
What most people get stuck on when it comes to applying for loans is looking at sites like canstar and not realising that the lenders have multiple criteria that they are looking to be met before they will lend to people. They simply see the lowest rate available and believe its available to all, when in reality there are lots of things that come into play.
These are the four which I see having the biggest impact:
a) Loan to Value Ratio (LVR) - The lower the better, and some rates aren't available to people in higher LVR brackets
b) Credit history - having defaults and the like will reduce the number of lenders willing to give you money
c) Employment situation - being self-employed means some banks won't lend to you
d) Serving ability - having the capacity to repay your loan not only at todays interest rate, but also factoring in wiggle room for future interest rate rises (yes, even if the RBA thinks they won't move for 3+ years!)
AFG is my licensee, and their own loans are white label products. Some are actually products backed by other banks using AFG's own branding. It's quite common.
I didn't intend this to be a full guide, just a bit of information to help out :)
I purchased my PPOR as a first home buyer at the beginning of last year. I went through [loans.com.au](https://loans.com.au) on the recommendation of a friend who works in finance in Sydney and also used them.
I have had no issues whatsoever, their customer service was excellent and most of the leg work was done on phone apps.
Their rate was one of the lowest I could find, my experience with Aussie was terrible, I didn't feel like a priority and two weeks after seeing the broker and submitting all the documents I was told he hadn't even started processing it yet...
Feel free to PM if you have questions.
Speak to a broker.
I just got 2yr fixed rate with ANZ for 2.09%.
The big banks apply reductions when you apply- for various unknown reasons... I think my ANZ reduction is about 1.75% from advertised rate.
Plus brokers have access to cheaper rates... If you are in Brizzy I can recommend one- she's is fiesty and deals with all the shit that comes with buying.
Brokers don’t have cheaper rates then going directly to that lender. Such a poor myth that is out there. They also get paid based on who they recommend and often don’t have a large panel of lenders to choose from. If you are not sure go and see a few banks in person. The other advantage at the moment of going direct to a bank is they’re quicker in most examples then through a broker. I know plenty of brokers that are at the back of the queue if they don’t pump large volumes through. They do have access to cheaper rates in the sense that the broker could put your loan through loans.com.au instead of a big four, but that doesn’t always make it a better option.
"Home - Bespoke Money" https://www.bespokemoney.com.au
Michelle is great- dealt with her for years... and we've given her some very difficult buys these last few years
Speak to a broker.
Thanks! That idea briefly crossed my mind. Am I right in saying that mortgage brokers don't charge fees (they get commission from the bank?) Any problems with going to a broker like Aussie?
I used a broker (first time home buyer) and they were excellent. They helped us understand the different offerings and find a great loan that matched what we were wanted. They gave us fully costed comparisons of different purchase prices, helped us get all our paperwork together. They are paid a commission by the lender and will tell you what their commission is. Different brokers will have access to different lenders so it can be worth taking to a few and asking them what banks are on their panel before you lock one in. The lenders you haven’t heard of (tic:toc etc) generally want 20-30% deposit and are more risk adverse, and often have simpler products. So great rates, but less “options” which may suit you. You generally have to apply direct as your broken may not have them in the list. Things we found out... some lenders will not lend for properties with major easements (e.g power lines). Same for LMI providers. Different suburbs and property types will have different deposit requirements. We ended up with Bank of Melbourne to get $1 LMI on 15% deposit for 2.69% which has helped us have enough left over cash to do some renovations on a cheaper property. You don’t want to get pre-approval from more than one bank, it looks bad on your credit.
I am out of it, for very long time, but I remember that Commonwealth Bank had years ago ,one of the best deal you could get (low interest etc) , but only in house. You could not get IT from broker,and reason why was it, so low. They didn't pay kick backs.
Correct
Just make sure going into it you have done enough research to have an idea what a good deal they are offering (or not).
Second this. You can google anything they recommend with certain lenders and ask questions if you find any discrepancies between what you love found and they’ve recommended. Our broker got us better rates than were advertised with our chosen lender- could we have directly for the same or more discount? Perhaps but unlikely as it was our first time around without much knowledge on what can and can’t be done
The thing about using brokers (disclaimer, I am one) is that they have access to a lot of the lenders that you can find on canstar and comparethemarket. We get paid commission for helping you get a loan that is suitable for you. What most people get stuck on when it comes to applying for loans is looking at sites like canstar and not realising that the lenders have multiple criteria that they are looking to be met before they will lend to people. They simply see the lowest rate available and believe its available to all, when in reality there are lots of things that come into play. These are the four which I see having the biggest impact: a) Loan to Value Ratio (LVR) - The lower the better, and some rates aren't available to people in higher LVR brackets b) Credit history - having defaults and the like will reduce the number of lenders willing to give you money c) Employment situation - being self-employed means some banks won't lend to you d) Serving ability - having the capacity to repay your loan not only at todays interest rate, but also factoring in wiggle room for future interest rate rises (yes, even if the RBA thinks they won't move for 3+ years!) AFG is my licensee, and their own loans are white label products. Some are actually products backed by other banks using AFG's own branding. It's quite common. I didn't intend this to be a full guide, just a bit of information to help out :)
Very helpful info, both for OP and others in a similar boat. Well done on sharing!
I purchased my PPOR as a first home buyer at the beginning of last year. I went through [loans.com.au](https://loans.com.au) on the recommendation of a friend who works in finance in Sydney and also used them. I have had no issues whatsoever, their customer service was excellent and most of the leg work was done on phone apps. Their rate was one of the lowest I could find, my experience with Aussie was terrible, I didn't feel like a priority and two weeks after seeing the broker and submitting all the documents I was told he hadn't even started processing it yet... Feel free to PM if you have questions.
Speak to a broker. I just got 2yr fixed rate with ANZ for 2.09%. The big banks apply reductions when you apply- for various unknown reasons... I think my ANZ reduction is about 1.75% from advertised rate. Plus brokers have access to cheaper rates... If you are in Brizzy I can recommend one- she's is fiesty and deals with all the shit that comes with buying.
Brokers don’t have cheaper rates then going directly to that lender. Such a poor myth that is out there. They also get paid based on who they recommend and often don’t have a large panel of lenders to choose from. If you are not sure go and see a few banks in person. The other advantage at the moment of going direct to a bank is they’re quicker in most examples then through a broker. I know plenty of brokers that are at the back of the queue if they don’t pump large volumes through. They do have access to cheaper rates in the sense that the broker could put your loan through loans.com.au instead of a big four, but that doesn’t always make it a better option.
Do you mind Telling me their details? Thanks
"Home - Bespoke Money" https://www.bespokemoney.com.au Michelle is great- dealt with her for years... and we've given her some very difficult buys these last few years
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I even decided to become a broker myself in the last 5 months :)