Do any of them actually earn the $7,000 kickback they get from the bank?
I think mine is the best compared with many stories from others but he's still cost me a week with some obvious bungling of necessary documents not filled.
I'm ok with a pen pusher making $7,000 for doing sweet fa, but you gotta get it right.

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psychojoe said..
Do any of them actually earn the $7,000 kickback they get from the bank?
I think mine is the best compared with many stories from others but he's still cost me a week with some obvious bungling of necessary documents not filled.
I'm ok with a pen pusher making $7,000 for doing sweet fa, but you gotta get it right.

I have always gone to the bank for loan applications.

What do mortgage brokers do for you, and specifically what have they done for you in this case if they have also cost you money?

Cost me nothing. The bank either pays the mortgage broker or they pocket the money, it was never mine. I just expect people on top money to excel.

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psychojoe said..
Cost me nothing. The bank either pays the mortgage broker or they pocket the money, it was never mine. I just expect people on top money to excel.

I sort of expected an explanation of what they did, and what went wrong and how clearly they were bad.

I get it now, your story seems to be 'they got paid $7000'. Exciting!

Well it's kinda shady that this is still permitted in Australia, many countries have banned it as you never know if the broker is working for you or themselves. They might suggest you go with h the loan that makes them the most.
At least I think they now have to disclose how much they get as a one off payment and monthly payments but it's still dubious.

Pretty sure this will be reformed sooner or later where YOU just pay your mortgage broker for the services provided instead of the bank. This will probably make you realise that you're already paying this, as it's just part of the bank's costs and incorporated in your loan fees and interest rates.

An independent broker or comparison website is probably not as independent as the name might suggest so as long as you take that into account you'll be fine ;)

I wonder how it would play out if you paid the broker directly? I don't think you can separate these type of jobs when the banks themselves don't have a level playing field. In theory the application process should be the same for everyone, but clearly it isn't otherwise 3rd party brokers would not exist.

I am going through the fun of realestate transactions at the moment. How do you know if the REA is on your side or not? You don't. Well, actually you do; they are on their side and it is all about them.

I have had cases where the agent tells me there are other buyers. Are there? Who knows.

I have had cases where an agent mysteriously stops taking offers on a place because they already have a buyer. Is this in the interest of the vendor or is the REA just wanting a quick certain sale? Are they selling it to a family member at a cheap price?

Maybe mortgage brokers are a scape-goat for the banks? If they get caught out selling so many loans to risky customers or lending against the best interests of the public, they can just blame the brokers, but otherwise be happy with the business they brought in?

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FormulaNova said..

psychojoe said..
Cost me nothing. The bank either pays the mortgage broker or they pocket the money, it was never mine. I just expect people on top money to excel.

I sort of expected an explanation of what they did, and what went wrong and how clearly they were bad.

I get it now, your story seems to be 'they got paid $7000'. Exciting!

The story is he didn't forward the contract of another sale that this loan is reliant upon to the bank. I touched on that in my comment.

Are they just as bad as asians ?

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psychojoe said..
Cost me nothing. The bank either pays the mortgage broker or they pocket the money, it was never mine. I just expect people on top money to excel.

Do you really believe that it cost you nothing? The bank may have paid the broker but YOU are the one that will pay, and pay and pay again, don't be deluded, the bastards give you NOTHING.

The banks are gradually moving away from Mortgage Brokers and bringing loan management back in house.

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airsail said..
The banks are gradually moving away from Mortgage Brokers and bringing loan management back in house.

I haven't seen it. I would always prefer a mortgage broker because applying for credit can affect your credit rating, having a mortgage broker look into things on your behalf has no adverse effects, or at least this has been my experience.

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UncleBob said..

psychojoe said..
Cost me nothing. The bank either pays the mortgage broker or they pocket the money, it was never mine. I just expect people on top money to excel.

Do you really believe that it cost you nothing? The bank may have paid the broker but YOU are the one that will pay, and pay and pay again, don't be deluded, the bastards give you NOTHING.

Sorry. Should have said nothing extra. The bank would charge me $7,000 to deal directly with me. I'm still getting charged the same but it's funnelled off to someone who might not be entirely competent but still far more competent than any branch staff I've had the displeasure of dealing with.

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ptsf1111 said..
Well it's kinda shady that this is still permitted in Australia, many countries have banned it as you never know if the broker is working for you or themselves. They might suggest you go with h the loan that makes them the most.
At least I think they now have to disclose how much they get as a one off payment and monthly payments but it's still dubious.

Pretty sure this will be reformed sooner or later where YOU just pay your mortgage broker for the services provided instead of the bank. This will probably make you realise that you're already paying this, as it's just part of the bank's costs and incorporated in your loan fees and interest rates.

An independent broker or comparison website is probably not as independent as the name might suggest so as long as you take that into account you'll be fine ;)

My broker was actually very transparent. I've been using the same guy for years. He showed me what he gets paid, what kickbacks he gets, what commission he gets. Which banks he is and isn't working for. Which products were available for my situation, why he directed me as he did. And what percentage of clients he sends to each lender. Can't fault him in that department, just wish he hadn't made one stupid mistake.

Some interesting interpretations!

I am a mortgage broker and I can assure you we are not all the same but considering a basic loan takes over 20 hours of work to put together (correctly), the money is deserved.
Also most brokers don't charge clients, the banks do pay the broker. The broker does the role of writing the loan and collecting required docs for the bank, who then assesses the application.
There is usually an up front payment plus a trail commission, additionally a claw back provision where if the loan leaves the bank within 12/18months (av policy) then the broker is clawed back 100%/50% of what they had been paid. Yep we love to work for free
Brokers are also bound by Best Interest Duty, which was put in place after the Royal Commission. Brokers must act in the client's best interest which is why a heap of paperwork is required to allow the broker to make the best recommendation for a client. Banks can only offer their own loans (which may not be the best for a client).
Some banks are pro broker, some are not. Most banks would struggle to perform all the tasks in house.
My business also does all maintenance on client's loans, like top ups, splits, annual reviews (generally all the unpaid work) so the trail commission is earned too. Our annual reviews keep our customer's rates from creeping up out of cycle, and if the bank will not look at a fair rate for existing clients we look at alternatives.
There are a lot of really good brokers, a couple that are not so good. Generally brokers are there to help though and the numbers (of people who use us, and satisfaction) stack up that overall brokers do a great job.

My 2c worth

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gwunder said..
...... My 2c worth

$0.02 for that info ?

That seems like incredibly good value compared to the all the nonsense on here.

When I had mortgages they went through a broker. The broker we dealt with was at an open house inspection we went to. I don't think the broker ever charged us directly. Overall the broker was pretty good. We moved our loans a couple of times to get a better deal with the broker's help.

There would be harder jobs out there than broking mortgages but I'm sure it has its own stresses.