How do you offer Independent Advice?
One would easily assume that when dealing with a mortgage broker you’re going to get independent mortgage advice. However, in recent times a number of the larger franchised mortgage broker groups have been steadily taken over by the major banks in Australia. We would suggest if you’re looking to get independent mortgage broker advice, then ask a couple of straight forward questions when you’re seeking a broker you’re going to be comfortable with.
Questions Worth Asking:
- Who owns your company?
- Is a major bank involved as a shareholder in your company?
Do you do home and after hours visits?
Yes, at Real Financial we understand your time is valuable, We can come to you wherever you wish to meet. From your kitchen table to your favourite café, we are happy to meet wherever it suits you and at times that’s convenient to you.
What is LVR?
LVR stands for Loan to Valuation Ratio. It is formulated by dividing the loan amount by the purchase price or valuation of the property. Most lenders will lend owner occupiers up to 95% LVR.
What is LMI (Lenders Mortgage Insurance)?
LMI is an insurance policy which minimises the risk for the lender. When you borrow more than 80% of the property value, the lender considers this to be a higher risk situation. To protect themselves, they require you to take out Lenders Mortgage Insurance. The benefit for you is you are able to get into the property market sooner than if you waited to save up your 20% deposit. The benefit for the lender is their money is protected should anything go wrong.
Can we have a package deal where we consolidate all our banking with one institution?
Some lenders offer banking packages and discounts which can reduce the cost of your everyday financial needs. These packages provide significant discounts to certain groups. It’s worth shopping around as these kinds of deals can be quite lucrative to those who have been able to secure them. Our Mortgage Options can give you guidance in this area if you are interested in doing a debt consolidation.
How can the banks afford to pay mortgage broker’s commission whilst keeping the interest rates on their products the same?
If brokers weren’t writing loans for the banks then they would have to spend more money on advertising and on increasing their sales force, in order to attract customers. Individual mortgage brokers now incur the cost of finding clients and the banks pay us for doing so. So basically it all evens out. There is no impact on your interest rate or other fees.
If the loans offered by the banks are the same as those you offer what is the benefit of me getting my mortgage from you?
If you come to us to get your home loan you will receive a complete service. Firstly we can give you an idea of which lenders you will qualify for and then we can help you find the best mortgage offered by those lenders. This prevents you from tarnishing your credit record by applying at many lenders who subsequently reject your application. Once you decide on a loan we help you complete the application and compile the supporting paperwork required. We then send it to the bank and deal with them right up to settlement. This means you won’t have to wait on any bank telephone queues because we will do it for you.
We don’t forget about you as soon as your loan is settled. After settlement, we review your plan at least every six months to make sure you stay on the road to financial freedom.