any advice is much appreciated. I have just done the paper work with POWERLOAN and waiting for approval. did some research on the net and they seem a little dodgy… please help! looking forward to buying our 1st home (new family…baby is due any day now!)… just don’t want to be ripped off.[blink]L.A AussieMember@l.a-aussieJoin Date: 2006Post Count: 1,488
I found this post on this site while doing a search on Powerloan: –Originally posted by Red13:
I worked for powerloan a couple of years ago. They have a very very high turnover rate. There are alot of restrictions on what you can do, and they constantly bag brokers and banks. They are mortgage brokers, but only selling the branded products – therefore have mininal range.
There is alot of hype, and it is easy to get sucked in. The positivism and constant motivational talks make you forget that you are not earning money, or are only earning a bit. I would describe some of their practices as dodgy.
They place all the risk on you – no wage etc – but expect you to conform to their standards relentlessly. I believe many of their former/current workers could claim entitlements as workers which are otherwise completly denied to them, except most just dont want anything to do with them anymore, or couldnt be bothered claiming (or dont know their rights through all the hype).
The founders come from a multi-level marketing background, and powerloan is a mortgage broking company with that structure. Most people only sell to their friends, and make money for those higher up in the structure.
I recall them spruiking “Kebble”, one of westpoints products, relentlessly.
However I did learn alot about the finance industry, and professional ethics, but really nothing I couldnt have learnt from a 2 day course from WEA.
I would suggest that you join a reputable firm of brokers – your future will be much better, and realistic.
This is referring to how they treat their employees. Not a good sign.
8cubed, this is your first loan and a very big investment. The last thing you need is doubt about the loan, especially with a baby on the way.
I would suggest doing LOTS of research on all the banks’ loans either on the internet, or ring them and ask to speak to their lending rep/manager (including your own) to compare apples with apples before you sign with Powerloan. Their website looked o.k, but whose doesn’t?
Before doing any research on a loan get your financial statement together – how much you owe, how much you own, your monthly expenses etc. All banks will need this info, so get it ready now.
This will allow the banks to give you an accurate figure on what you can borrow.
A few hours of hard work now on your part will save you thousands of dollars and less heartache in the future.
thanks for the advice… will be looking more closely into it…
cheers[exhappy]TerrywParticipant@terrywJoin Date: 2001Post Count: 15,850
Why not see a second broker for a different opinion
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does it matter that i have filled out application paperwork with Powerloan??? is it ok to apply from muiltiple lenders/brokers???
cheerMortgage HunterParticipant@mortgage-hunterJoin Date: 2003Post Count: 3,781
It shouldn’t matter.
You can ask Powerloan to hold off on your application if you wish.
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Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.AnitamarshallParticipant@anitamarshallJoin Date: 2005Post Count: 79
If they are a mortgage broker ask them to give you some comparisons of other products to theirs – they should be able to do this. There are some excellent interest rates around for 100% home loans (if that is what you are doing) and also some competitive fixed and introductory rates at the moment – definitely shop around.Richard TaylorParticipant@qlds007Join Date: 2003Post Count: 11,937
Do a forum search on Powerloans as there has been many posts mostly unfortunately unfavourable.
There is nothing to stop you making enquiries with a range of brokers to see which one you feel will act for you and not just for themselves in recommending a loan product which pays them a higher commission.
A good independant broker will look at your relationship as a long term one and not just for a quick quid.
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
Looking for life cover – We Guarantee to beat any quote you have in writing.benafflek21Participant@benafflek21Join Date: 2007Post Count: 2
POWER LOAN SHARKS
I know of several people who have lost there houses with this mob.
What they do is tell you not to focus on the rate ate all and to come to their workshops (form of Brain Washing) to keep you from the truth.
The truth is they get paid 1.4% commision from the wholesale lender usaually Challenger when the industry average for a broker is .70%……..This doubles the effect on your interest rate as the wholesaler adds it on top.
Thats not all they then put on top of YOUR loan around .60% trail income for themselves on YOUR loan for THEIR hip pockets when the industry average for a broker is .20%
And this is why their loan rates are higher and this is why they BRAINWASH you into thinking it is not about the rate.
They are charging their so called valued clients 3X the industry standard….where is the ethics in that as they like to preach.
They even drop the line that they are so called Christians and work for ethics and give you a long list of trying to reduce the debt of the nation.
They have fetured on TODAY TONIGHT 3 times already have been the hit of NEIL JENMAN and a number of Class Action Law suits from WESTPOINT investors are underway.
Sounds All to shifty for me and now they want to re invent themselves in a new state with a new name…….
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