Why Choose Us

CHOICE

A broker will be able to offer you practically the entire finance market. If you want a home loan, a quality broker can identify the most appropriate loan for you, normally from over 30 lenders.

A banker can offer one set of products from their own bank, nothing else.

PRICE

Having access to the full market means a broker can weed out the expensive lenders and offer you the lowest prices. With home lending, though a bank will pay the broker a commission for the loan referral, there is absolutely no inflated rate to you as a consumer as a result of this payment.

A thing called ‘channel conflict’ prevents banks from offering a better price than a broker can, if they are referring to the same bank. So you can rest knowing that if you walked into a branch for a loan and you managed to get their best price, your broker will be able to get that same best price, or better.

TIME

Searching the internet for the best home loan can be incredibly time-consuming and complex. Nowadays it’s hard to figure out what the absolute best price you can get is from a certain bank, and it’s normally not the one offered on their website. Some of the new comparison sites can present options, but are often convoluted, and it’s hard to know if you even qualify for the offer with all the fine print involved.

An experienced broker will cut through the complexity and be able to summarise the best options that suit your needs by doing the legwork for you. A good broker will also explain to you the benefits of a certain structure over another (whether the loan is best as interest-only or principal and interest, fixed or variable, or a combination of all of these).

Not only will you save time in searching for the best options, you’ll also save time in the application process. Most brokers will be able to complete most of the core application in 5 minutes over the phone with you (rather than have you fill out a 23-page long form) and all you have to do is provide the verifying information.

A good broker will also know exactly what you need to provide to the banks to get a good outcome, and will help to ensure approval even if there are issues with the provision of certain information.

CHANCE OF APPROVAL

Brokers have access to all of the banks’ lending processes and policies at their fingertips, and every bank is different when it comes to their risk appetites towards certain customers. For example, lenders will offer wildly different options for contract workers, permanent residents, or those on maternity leave.

By enlisting the help of a broker, you will know which banks can do certain things, and which can’t, to prevent you wasting time barking up the wrong trees.

AGILITY

When using one bank, as a consumer you’re exposed to a high level of risk if something doesn’t quite go to plan, and you may be left completely stranded.
For example, I recently secured a pre-approval for a client of mine’s new home purchase and everything was good to go. After purchasing their new home, the bank involved went and valued their property for an amount significantly below the contract of sale price. Whilst challenging this unfortunate valuation, I was able to swiftly order two new valuations at two other competing lenders, and to the client’s relief, both of these lenders valued the property at the contract price. As their broker, I was able to reassemble their application with the new lender to enable a fast re-approval, with a price very similar to the original lender.
A situation like the above is why it is vital that you have access to a quick-thinking and innovative broker.

ONGOING SUPPORT

Because brokers receive an ‘ongoing trail income’ from the banks, of around 0.15% of the loan amount per annum for home loans (not passed on to the client), they have a vested interest in ensuring that client continues to be happy with their loans. If a client refinances, the broker will lose this trail income.
A good broker will regularly touch base with their existing clients to ensure they’re still on a competitive rate and have the product that most suits their needs. A broker can organise revaluations on your property and reassess your loans in the context of the market at any point in time. At a bank, you’re less likely to be contacted about your existing home loan after drawdown, and you’re almost certainly not going to be called by them offering you a better rate!

CONVENIENCE

Once you do one loan with a broker, they’ll have your information available to them for any future transactions you are looking to do (saved in a secure and private location). This means that when it comes time to change your loan, refinance, or access more funding, they’ll be able to just ask for a few items, but the core information won’t have to be resent by you, saving you both time and the frustration of having to repeat yourself again and again.

POTENTIAL FOR MORE FUNDING & NO LMI

Different Banks have different rules when it comes to lending on certain property types or to certain individuals. A broker will be able to get you the best result if you’re looking to put in as little cashflow as possible if you wish to use your cash for other things.
In addition, certain professionals (such as solicitors and accountants) are able to access Professional Packages at some banks, who will lend as much as 90% of the property value, with no Lender’s Mortgage Insurance (LMI) being charged, which is a one-off insurance policy covering the banks that can often cost upwards of $20,000 for a typical property purchase, if you borrow above 80% of the property value.

STAFF TURNOVER / BROKER FOR LIFE

Bankers are notorious for moving roles and banks as they pursue their next promotion. As a consumer, this is not a great outcome, as you’re often left explaining your situation again and again to new staff who seem to only be around for a fleeting moment in time. Add to this the stress of one staff member offering you an approval, then leaving, and not giving you much confidence that the loan will get done by the incoming employee.
Brokers tend to be for life. They are building their book of clients and aiming to maximise their trail book, and are often extremely careful about their personal brand so they get repeat business and referrals. You will likely not have to explain your situation again with your broker, and they are likely to have much more time than a banker to entertain a meeting with you, or to take you out to say thank you for your business.
In the end, a broker is effectively working for you and your family, and a banker tends to be working for the bank and its shareholders.
For the above reasons and more, when you’re next in need of finance, it’s best to think twice about running straight to the bank, and ‘open your mind’ to the prospect of starting a relationship with an experienced finance broker.