Hi Guys
Can a finance broker offer a better deal on a standard bank product over another broker.
Im just wondering whether its any good to shop around for a better deal.I am looking at 95% loan product, best ive been offered so far is 6.45% rate, $14K LMI.
IP is $475K, i have roughly $50K in the bank.Any help on this matter is much appreciated.
Saurabh
The simple answer is Yes and No.
In most cases it is not a matter of the lowest rate but actually getting the deal thru at that lvr whatever your local bank say.
Where LMI is involved they could ask for additional information at any stage, change their mind, request a blood sample, anything is possible.
What one mortgage insurer will do another may not and this can be the same even where the same insurer is used.
It is ok getting a deal thru but if the lender doesnt allow increase is tough on credit scoring etc etc the offer of a rate of interest can mean nothing.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
To me interest rates are only a small part of the picture.
Better off looking for a broker who can structure best, maximise your borrowings and one who truly appreciates what your plans are.
I look at interest rates as 'the cost of doing business' and there are more important issues at stake.
Another thing to mention is that some lenders only operate via the broker channel.
In any case, you should be satisfied with just getting a 95% deal approved rather than worrying too much about the rate.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Thanks Richard for your advise
Derek i like your comment. I have narrowed down to two brokers but one of them actually mentioned that he will not only do the loan but will sit down with me and do a 5 year plan. I may want to refinance existing PPOR or sell it off and buy another one so he will keep everything in mind and guide me so to say.
Thanks Jamie for your comment – I have done some research on who owns what in banking industry and its very disappointing to know there arent very many big players. Also re worrying about getting the deal approved, does it increase your chances of approval if you go with a bank with slightly higher rates than the cheapest one out of the options?
sbhjain wrote:Also re worrying about getting the deal approved, does it increase your chances of approval if you go with a bank with slightly higher rates than the cheapest one out of the options?Not at all. There are competitive rates at 95% LVR – you don't have to pay a premium for a 95% lend.
The main point is that getting a 95% lend approved is not always a walk in the park so you shouldn't focus on getting the most competitive rate – rather focus on being placed with a lender who is actually going to do the deal.
Not all lenders provide 95% lends and there's a range of different policies, etc to navigate through. Therefore (and yes it sounds biased) but perhaps should consult a decent broker.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Thank Jamie
Whats everyone's opinion about Rams Loans? and has anyone got a 95% loan with them?
Hi Sbhjain,
If you are looking for a broker give one of those who has provided assistance in this thread a bell.
I wouldn't be worried if they are away from where you live – most people are very familiar with working on a phone and email.
Jamie and Richard's track record is here for all to see.
Derek i prefer someone local, no offence to either of them. I already have couple of brokers talking to me.
Anyonme got any advise on Rams?
Rams? They will try and sell you their own product before 'broking' you anything else, but in answer to your question, make sure you have comfortable joggers or shoes, and plenty of water before….running!
Cheers
Sorry – forgot to add, that while as others have said, the answer is essentially 'no', it is the bank that is the lender, and the broker is just that -a broker……banks appreciate that a large % of new business comes via the broker channel, which means that if a broker has a better relationship with a certain lender than another broker; perhaps they have established a really good working relationship; it may just be the difference between getting your loan approved or not as already mentioned, when the guy/girl goes in to bat for you. Can make a difference….I've seen it.
Cheers
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