Seven out of ten borrowers use a broker. So, if you are reading this, there is a 70% chance you are already using a broker. (Tick that box!)
As the proportion of borrowers using a broker has increased over the past 20 years, it is fair to surmise that brokers are doing something which local bank branches are not doing – or cannot or will not do.
Even if you are using a broker, you might like to make sure your broker is offering you all the ‘value add’ things a great broker does for their clients.
#1. Brokers give you a choice. When you go to a lender, you only get a loan from their product portfolio. We have access to over 60 lenders and over a thousand loan products. But too much choice can lead to decision paralysis so…..
#2. Great brokers simplify your choice in 2 important ways: First, identify those lenders who will lend to you (and exclude those lenders who can’t or won’t lend to you). Second, of those lenders who will lend to you, they sort them so you can choose from the best deals on offer.
#3. Great brokers give you the ‘right to choose.’ Whilst the broker has the responsibility of whittling down the lenders to those who will lend to you, it should always be your choice as to who you want to borrow from; even if your choice is not the cheapest (we all have our reasons!).
#4. Brokers can provide you with information on all aspects of a loan product. Not all loan products are the same. They can appear similar, but the differences can be important for you.
#5. A broker has a statutory obligation to ensure your loan is suitable for you. A lender does not have this obligation.
#6. A lender has no obligation to suggest you could get a more suitable loan from another lender. They are only obliged to say ‘yes’ or ‘no’.
#7. Great brokers value their relationship with you, not just the loan transaction. Lenders and even some brokers are all about the transaction and the minute settlement occurs, you are no longer front of mind for them (in the case of a bank, you are a BSB and Account number!).
#8. Brokers work for you. Your local branch officer does not. He works for the lender.
#9. When organising your own loan (DIY), you have to work out what to tell the lending officer. Sometimes you may be tempted to give ‘too much information’ and sometimes ‘too little information.’ Either way, if you get this wrong, your prospect of getting the loan you want diminishes. Meanwhile, good brokers know what lenders need to know. Plus, a broker can workshop a loan with the lender to make sure all the right information is prepared the right way for presentation to the lender.
#10. Brokers arrange loans for a living. They do it over and over again. When doing it yourself, you need to reflect back on (and remember!) ‘What did I do right last time?’ (Plus, you still won’t know what you didn’t know last time).
#11. Brokers know that getting a loan can be stressful. Great brokers help you manage your stress by communicating regularly with you – they keep you ‘in the loop’ and show you the way. Transparency and objectivity are key traits for many successful brokers. Many of the compliments we receive from our clients focus on our communication skills and our ability and willingness to go ‘well beyond the call of duty.’
#12. Great brokers save you time. They do a lot of the work for you. They gather the information you need to give to a particular lender (the information required varies from lender to lender). Plus, they present your information in a way which gives you the best possible chance of meeting the lender’s criteria. It is amazing what a good explanation can do to placate a lender who is uncertain as to whether to lend you money.
#13. Brokers want to make sure your loan is being lodged with a lender who will say ‘YES.’ Whilst there are no guarantees from a lender until they say ‘yes’, a broker can objectively assess all your information and have informal chats and even pre-present some information to the lender to make sure that your application is given the best possible chance of being successfully approved. We call this Scenario Shopping. And, a great broker will keep you in the loop during this process so you know what is happening.
#14. If you go to a lender and they say ‘NO’, you need to start all the way back at the beginning – and repeat the process. This is the same with online lending portals. A broker, however, has a lot of your information within their software systems and it is easy for them to re-apply with another lender without having to restart all over again from the very beginning.
#15. Brokers are paid by the lender. Whilst there are some circumstances where you might need to pay a broker, these circumstances have to be set out and agreed to by you before you proceed with your loan application.
#16. The interest rates you obtain for a loan product are the same as if you went directly to the lender. So, there are no disadvantages price-wise in using a broker.
#17. Great brokers offer you great value BEFORE, DURING and AFTER your loan is settled. Here are some of the things we do for our clients:
✔️ Free property reports on a property, suburb or region – scan the QR Code.
✔️ Free monthly newsletter on all things finances and property. Intriguing information.
✔️ We use a unique process to whittle down our 60 plus lenders to those who will lend to you.
✔️ Expertise and experience in complex business and legal structures.
✔️ Access to experts across Australia to assist with your property purchase or refinance in legal, property selection & negotiation & property inspections.
✔️ Annual rate check-ins with your current lender to make sure your rates are competitive with their best ‘new customer’ rates.
✔️ Bi-annual scanning of the market to see if you can get a better deal at another lender.
✔️ Access to experts across Australia to assist you with your property maintenance, wealth growth (and more) for you and your business.
✔️ We donate 5% of our upfront fees to a local charity. We believe this works to improve the value of your property by improving the quality of life for those living around you.
Would you like more information? You can ring us now 1300 989 878 or email us at moreinfoplease@bir.net.au. And you can also book a meeting with me: https://calendly.com/michael-royal/chat-re-finance
