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The Royal Commission - what it means to home loan owners

Completely off topic!

Re: The Royal Commission - what it means to home loan owners

Postby spider25160 » 10 Feb 2019, 18:55

peatop wrote:
Brokers are in the game, they know whats going on day to day, why wouldn't you at least get Free advice, before one of your biggest investments in your life? ;)

Just so long as they are not FAKE brokers ie; bank employees not comparing a suitable depth of available products from a variety of sources.
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Re: The Royal Commission - what it means to home loan owners

Postby CrazyChenski » 10 Feb 2019, 23:35

For my worth the two cents.....

On the flip side of the story I have some different experiences.

10+ yeasr ago, when I got my first proper home, I don't have the brain nor the patience to walk to different bank and listen to every package and deals they have. So I went with a reputable broker (Loan Market) because like most of people.
I was pretty happy, in a way because he cut through the crap gave me the advice and help me navigate all the paperwork and etc to get me the, loan and finally bought my first house. He has been very helpful all the way to the end, but then i never heard from him again.
A few years later wife and I was thinking to purchase an investment property, I thought to contact the same broke again for assistance and advice, since he has done a good job. He was of course happy and keen to help. However, while we were exploring the option, he informed me that this time I will require to pay an upfront fee to him. I questioned the reason as of all of the other broker never ask for upfront fee, and he said and I quote, "This is to cover extra costs, as the bank don't pay me as good used to me.". And of course, I walked away from the whole conversation after that, and never spoken to the broker again.

Fast forward to Late November 2018. Wife and I planned to refinance our loan for the purpose of getting better rate and possible redraw the loan a bit to do some TLC to the house and possible to help out possible new purchase at end of 2019. A family friend's relative whom is a broker was to help this time. We told him our plan and at the end of it, he advised us to switch to BOQ with the lowest interest rate, but downside of exit fee which we are fully aware. We put our application in just before we flew off to Japan for our annual holiday. While we were on the road, we got a email from the broker advising the "Bank" has advised due to policy changes they reduced the loan account we requested, and also indicated there will be cir. $2000 of interest/exit fees (which is surprising to us as we were advised $300 exit fee, and also $200-400 for application fee)........
After spoken to the broke, ultimately he didn't know about the bank's policy that do not allow us above certain threshold (consider he is the one whom highly recommend the package, I am surprised he didn't know) and he couldn't clearly explain to us why the "Interest/exit fee" is basically double what he first advised us.......

While discussing this with a work colleague over coffee, who happen to hear my conversation, he told me i should seek 2nd opinion as he has different experiences with his broker, whom actually calls him up regularly and inform him of a better deal that might be worth of him to re-finance,
Sure enough, I spoke to his broker, he has been extremely helpful. In fact, he advised instead of re-finance the loan with BOQ, he can re-negotiate with ANZ to re-finance the loan AND get me better rate, with no extra fees. Just this week, my application for re-finance has been approved and the rate has been re-negotiated to just below 4%.
Upon discussion with this broker regarding to previous person's advice, he indicated although he don't know what was the reasoning or logic of the broker's advice was, but he believed previous broker did not did anything wrong. But, he believes the only possible reasoning previous adviced to re-finance to different bank, is to allow the new broker to earn the full commission of the loan. So for my case this time, the new broker, Gary ,indicated that he most likely will only be paid commission on the extra loan portion and also maybe condition on if I did spend the extra money i draws out of the loan)

Three different loan brokers, 3 different experiences:
1st Broker: Extremely helpful... up till loan been executed. Didn't hear from him again until contacted for more business.
2nd Broker: Badly adviced. Don't know his product (or maybe has own agenda, not for the benefit of the client. eg. One bank pays betetr than other bank, ).
3rd broker: Extremely helpful, and also keep onto of the product and policies. Also regular keep in contact with his clientele.

There are good brokers, and there are bad brokers. Just like the Financial Planning sectors, a few bad examples will give a bad taste in people;s mouth.
Base on my experiences...... They do need a bit of shakeup. But the extend of this shakeup ? I don't agree but I can understand the logic of it.
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Re: The Royal Commission - what it means to home loan owners

Postby maverick » 12 Feb 2019, 09:37

Start a thread and just drop off LoL. I will reply - lots going on in the background to try and ensure we have a viable business model and I can actually retire one day. Thanks for the input, I will reply... Just focusing on the dollar prodictive activities at the moment.
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