Ever thought about navigating the often-confusing world of mortgages with the help of an expert? Join us as we unpack the multifaceted benefits of working with a mortgage broker. We'll walk you through how these professionals can save you precious time and effort by giving you access to a diverse range of lenders. You will understand how a mortgage broker can steer you towards the most suitable lender and product for your unique needs.
Rolling into the second half of our discussion, we share the nitty-gritty of why mortgage brokers are invaluable. We lay out how they can negotiate the best loan terms and conditions on your behalf, and how they are a treasure trove of current market knowledge. Furthermore, we shed light on how they can help monitor your credit score with specialised software. By the end of our conversation, you'll see how a mortgage broker can be an indispensable tool in your financial journey. So, tune in for an eye-opening dialogue about the world of mortgages.
For any inquiries or to connect with Oscar, Zeke, or their company, Asset Road, listeners can visit the following links:
The advice shared on The Finance Bible is general in nature and does not consider your individual circumstances. The Finance Bible exists purely for educational / entertainment purposes and should not be relied upon to make an investment or financial decision. If you do choose to buy a financial product, read the PDS, TMD and obtain appropriate financial advice tailored towards your needs.
Ever thought about navigating the often-confusing world of mortgages with the help of an expert? Join us as we unpack the multifaceted benefits of working with a mortgage broker. We'll walk you through how these professionals can save you precious time and effort by giving you access to a diverse range of lenders. You will understand how a mortgage broker can steer you towards the most suitable lender and product for your unique needs.
Rolling into the second half of our discussion, we share the nitty-gritty of why mortgage brokers are invaluable. We lay out how they can negotiate the best loan terms and conditions on your behalf, and how they are a treasure trove of current market knowledge. Furthermore, we shed light on how they can help monitor your credit score with specialised software. By the end of our conversation, you'll see how a mortgage broker can be an indispensable tool in your financial journey. So, tune in for an eye-opening dialogue about the world of mortgages.
For any inquiries or to connect with Oscar, Zeke, or their company, Asset Road, listeners can visit the following links:
The advice shared on The Finance Bible is general in nature and does not consider your individual circumstances. The Finance Bible exists purely for educational / entertainment purposes and should not be relied upon to make an investment or financial decision. If you do choose to buy a financial product, read the PDS, TMD and obtain appropriate financial advice tailored towards your needs.
Zeke Guenthroth:
Hey guys, welcome back to another episode of Finance Bible Podcast.
Oscar Don:
We are your hosts, as always, Oscar and Zeke. Please note that nothing in these podcasts should ever be considered as personal financial advice.
Zeke Guenthroth:
If personal financial advice is what you are after, then please reach out and we can connect you with the correct professionals to ensure you get the job done properly.
Oscar Don:
Enjoy the show.
Zeke Guenthroth:
Let's get into it. Today we're just going to jump straight into different reasons that you should be using a mortgage broker or different reasons that we recommend it. We're not on here to say you should or you shouldn't. We talked about home loans last week, getting them to process different things to watch out for. I think it's probably a good time to touch on why mortgage brokers are good. Let's jump into it.
Oscar Don:
Let's get into it. We've actually narrowed it down to the top six reasons why you should use a mortgage broker. The first reason for us, and probably the most important, is the access mortgage brokers have to not just one bank or lender, but multiple lenders. They have relationships with different banks, credit unions, private lenders, meaning they can actually provide you with access of different range. If you go to NAB, for example, they may offer you their best product, which might be, let's just say, a rate of around 4.4%. Let's throw random numbers out there. If you have a mortgage broker, they may have a look at all the top 40 lenders in the country and find one cheaper than what the bank is offering, and diversify and looking at a bit more. I think that's a really important one.
Oscar Don:
While we're having this conversation, one of my friends who is going through the lending stages of the moment, who doesn't really know much about it, actually messaged me the other week basically asking does a certain bank have a good rate? Because he's going directly to the bank, which is fine in some cases, but it's probably not a bad idea to just speak with a mortgage broker and figure out other, better options out there, because majority of the time as well. Brokers won't charge you anything. They get paid from the lender. Some do charge, but at least you're looking at all the options before you lock yourself into a loan.
Zeke Guenthroth:
We've worked with mortgage brokers who have access to probably 50, 60 different lenders in their arsenal. If you go to one lender, as Oscar said, cool, they'll give you their best product. If you compare that to 60 lenders, one of those other 60 might be a better option, not only in terms of the interest rate, but their product might suit you better. Their offset might be more appropriate for you if the current bank isn't offering it packages in terms of credit cards and that kind of thing. Even if you bank with one lender for example, you bank with Commonwealth the loan facilities through Macquarie might be a better option. Again, not saying that is the case. It's an example. Number two save time and save effort. Even with a mortgage broker they're 99% of the time, if they're not absolutely horrendous at their job they're going to save you a significant amount of time Going through the application process, gathering the documents, figuring out which bank will approve you and which bank will give you what rate, and that kind of thing.
Zeke Guenthroth:
Mortgage brokers simplify the whole process. Let's use an example. I want to get a loan. I go into the bank. My nearest bank currently is Newcastle Permanent, so we're just going to use them as an example. Great bank, but I've got to do them dirty. For the example, walk in and you go yep, I want to get a loan, I want to go ahead and refinance my mortgage, or I want to do this, I want to do that. They're going to be like all right, well, we need XYZ, xyz, xyz. You get that.
Zeke Guenthroth:
It gets processed by someone offshore, actually Newcastle Permanent specifically. I don't believe they do. But you go to a bank, it's got to get processed. By the time they've done that, in two or three days they come back to you. You come back to them, they come back to you. It's normally a two or three day vary in between each one. You don't know every document you need. You don't know the easiest way to find that, whereas with a mortgage broker at least in Oscars, in my experience anyway We've gone out with mortgage brokers to the client, sat with him for an hour and a half, prepped exactly what documents they need, help them find that and then actually figure out exactly what amount loan they can get through service ability and help them through the application process, knowing exactly what lender will work for them best and knowing exactly what documents are required to show in that scenario. Is there any other ways that I've missed? Don that you reckon they would help speed that up at all?
Oscar Don:
Why does think? You know, probably even 20 years ago and the time before then, with everything kind of have to be a physical copy. Now, with mortgage brokers and the way that the digital world is developed, everything's online now, so it's become a lot easier. So, as you were just mentioning how we have been out with that brokers to clients houses majority of the brokers will have like an online portal so you can literally just drop in your information like pay slips, statements, you know, rates, notices, etc. Whatever you need for the broker. Literally within within five minutes, you may have everything you need. So it's a really Simple and seamless process.
Zeke Guenthroth:
Now, as long as you have a good broker, that's the most important, because not every broker is Amazing, but there are ones which stand out from the rest yeah, well, a recent example actually that I can jump into one of my clients is refinancing their debt in the self managed fund for one of the properties they purchased and they were thinking like you know, what bank can I walk into? It's a little bit difficult. A lot of banks don't tend to actually do that with self managed funds. Went to the broker that I work with at the moment, or one of the brokers we work with at the moment, and instantly they were like With again, not financial advice, but it's a new product with mortgage mark called easy refi, and basically they didn't have to provide as many documents and go through as much of a process to do it and it was looking like approval within about two or three days. So that saved a huge amount of time.
Oscar Don:
Really quick example there Before yeah, and I'm not really that actually moved on to number three as well, like the expert advice and guidance. Which is that point, because, because they're in the industry, they know all the new products coming out. They know all the new regulations and other news with the actual industry as well. So if there's something which they know will impact the clients and goals and cash flow and whatever they're going to achieve, they'll be able to let them know and guide them in the right direction. Like if their plan is about to go a bit off the rails because there's a new announcement, they will correct them. Say, maybe we move to this product instead of the proposed product a because ABC, for example. But that's where working with the broker really come into it, because they've been knowledge of the actual industry will help you in a long way.
Zeke Guenthroth:
Knowing all of the stuff that they know and understanding the infocases of all the products and everything like that Big one they understand is obviously the interest rate, where it's going, what's happening with it, which banks are moving and when they're moving and that kind of thing. Who's offering like special discounts at the moment or cashbacks and all of that. Moving on to number four, negotiation powers a big one. There has been circumstances where I've been working with clients and working with brokers. They've called the bank or their BDM not not necessarily the actual bank themselves, but brokers have a BDM like a business development manager. But brokers have a BDM like a business development manager assigned to them from the bank or from the lender.
Zeke Guenthroth:
There's been cases where they've called the actual BDM and gone hey, here's this deal, we really need to get the interest rate down on this. And I've seen the rates come down by I think the biggest I saw was about 0.45%, which is a huge amount on a $700,000 loan. So in that circumstance we were able to save a client thousands of dollars and over the long term it's gonna be tens of thousands of dollars. So mortgage brokers if they work really well with a bank or a lender, they give a lender a lot of business. They do get that push and pull effect going. A bit of negotiation, and I think that's. It can't be valued enough.
Oscar Don:
Yeah, and even you know, if you are listening and you have your own mortgage broker or you've done the lending yourself and went with a bank, it's probably not a bad idea to call it your broker, to call the bank, or call the bank yourself to check if you can get a review on your interest rate, because a lot of people have. Just they get the loan, they don't call up for two, three, four years. But if you haven't, it is worth just trying your luck, because nothing if you don't ask you don't get really, so you may as well suss it out. Number five, which that also leads into, is personalized service.
Oscar Don:
So with some clients' experiences with banks themselves in the past, before we met them, there has been a common ground that they're not very personalized in terms of they don't really care about you personally, like your actual goals and what you are wanting to achieve in your circumstances. They just want to give you the product and that's it. You're happy. But a broker ideally for them it's a long-term relationship, so they want to find out about you. You know what drives you, what are your goals, what are your investment goals? What are you wanting to achieve in the next five, 10, 15, 30, 40 years and really, at the end of the day, you feel like they actually work for you and they're involved in the whole process of building your wealth. So for a lot of clients now, and when we provide them with good brokers, it's really beneficial for them in their eyes too.
Zeke Guenthroth:
On this one. I mean, it's a massive advantage For me personally. That's probably the number one reason that I would use a broker, although, in saying that, I've got a clear understanding of exactly where I want to do. I know the industry, so I don't personally need it. But I mean, if I was personally not understanding where I'm trying to go and I didn't understand how to put it all together, so, for example, just a regular person that's not in the industry, trying to get a loan and they want to go and build up their finances long-term, you need a broker that can actually go all right. Well, you want to do X, y, z and A, b, c. How do we actually make sure this doesn't affect that plan? And I was going to say as well, even if you do go to a broker, it needs to be one that can actually do this for you. I've seen too many brokers in the past that actually don't provide that good of personal service. They don't understand the long-term goals. They just want to get you to the loan and help you in that one scenario. So, even though this is probably one of the biggest things that they can do for you, make sure that your current broker or the new broker if you're going to get one, will actually provide that service and understand exactly where you're trying to go. If you can't find a good broker that actually helps you in your own circumstances and understands what you're trying to achieve, and feel free to reach out and we can guide you in the right direction. And that brings me onto the focal point which we actually spoke about last week a little bit as well in the home loan podcast. If you haven't listened to that, go ahead.
Zeke Guenthroth:
But credit score enhancement With your credit score. I've recently had a client who's been absolutely brutally destroyed with their credit score. Trying to get a loan. They're trying to refind the loan, they're trying to do this. Trying to do that, they thought what the wise person would do. I'll shop around, I'll do a little application at NAB, I'll do a little check at Commonwealth, a little check over here and over there. Anyway, next minute they've got four applications for $800,000 on their credit report. You do the math on that 3.2 million of lending within one month.
Zeke Guenthroth:
You've got to understand when you go to Lenders and you say I want to do X, y, z, the first thing they normally do as an actual lender is check your credit.
Zeke Guenthroth:
When they check your credit, the amount you're trying to borrow gets put onto your credit file as an application for that amount or an inquiry about that amount. When you look at the credit report, you see how much you've tried to get lent in the past X amount of time and you see how many applications you've made and when you've made them and what they were that particular client. Now, when we're trying to do stuff as brokers, we're seeing all these credit things and their score being destroyed and it's a lot harder to get the lending and they're probably going to suffer a high interest rate due to it. As mortgage brokers, what can happen? They can actually jump onto a program and pull a soft credit inquiry that doesn't actually affect your credit score, your credit score, so they're not making an application on there, they're just pulling the data from it and they're able to access what it actually is kind of like Credit Savvy, but a lot more in-depth. They get to see the full report.
Oscar Don:
Credit Savvy as well. If anyone just wants a free place to look online, I reckon it's pretty good software just to use just to get a look at your current credit score. I don't think it's 110% accurate, but it's still probably 96% accurate, so happy with that. No, it's actually not bad at all and it'll give you a ranking. I think it's like a poor, average, good, excellent, which is good, and it can show you, for example, if you were to get a loan of 900K, would you be approved, yes or no. So it does give you ideas, which is actually really handy. So that was our top six reasons to utilize a mortgage broker. There's endless amounts of reasons to utilize a mortgage broker that we have narrowed them down for you. Put it to use. If you are looking for a mortgage broker or you want to get in touch, feel free to message us, ciao.
Zeke Guenthroth:
Guys, as always, if you've liked the podcast, please give us a review. Jump on that five star wagon, share it around with your mates and just give it the old, tick.