MORTGAGE brokers
Apr 24th 2004, 4:00 am
#1
Guest
Posts: n/a
MORTGAGE brokers
Mortgage watch - News Story
24apr04
MORTGAGE brokers are not necessarily the best option when looking for a loan, according to a survey by the Australian Consumers Association.
It’s long been known that there are some less than savoury people in the mortgage business but the ACA shadow shopping exercise exposed major flaws within the industry.
Included in the most recent findings was that many brokers did not include some of the best loans available in their lender lists which they use to source loans.
They also only usually deal with lenders who pay them appropriate commissions and don’t always give consumers all the information they need on which to base a decision.
It also found that Liberty Financial allowed brokers to include their own mark-up on lending interest rates, which made the exercise of going to the broker considerably more expensive than going to the lender direct.
24apr04
MORTGAGE brokers are not necessarily the best option when looking for a loan, according to a survey by the Australian Consumers Association.
It’s long been known that there are some less than savoury people in the mortgage business but the ACA shadow shopping exercise exposed major flaws within the industry.
Included in the most recent findings was that many brokers did not include some of the best loans available in their lender lists which they use to source loans.
They also only usually deal with lenders who pay them appropriate commissions and don’t always give consumers all the information they need on which to base a decision.
It also found that Liberty Financial allowed brokers to include their own mark-up on lending interest rates, which made the exercise of going to the broker considerably more expensive than going to the lender direct.
Apr 24th 2004, 7:08 am
#2
Location.. in my office
Joined: Apr 2004
Posts: 109
I dont really understand the logic of using brokers. All the info you need to choose your own mortgage is freely available online in most cases, and a little research will normally find you what you want.
Apr 24th 2004, 7:48 am
#3
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Posts: n/a
Originally posted by cadabra
I dont really understand the logic of using brokers. All the info you need to choose your own mortgage is freely available online in most cases, and a little research will normally find you what you want.
I dont really understand the logic of using brokers. All the info you need to choose your own mortgage is freely available online in most cases, and a little research will normally find you what you want.
Also, if speed is the essence, then they also "should" be able to get the "right" lender faster. And of course for "new arrivals" with plenty of other things to do as well as it may be easier to use a broker.
However, when we were looking at doing some more financing, I looked around quickly and came up with the HSBC being best, but I also went to a broker to double check, and they also came up with HSBC.
Now that either confirms that the Broker is as good as I am or that I am as good as a broker
Apr 24th 2004, 9:16 am
#4
Account Closed
Joined: Nov 2003
Posts: 1,384
We used a broker as time was important, then doublechecked deals they offered with those on the internet. Agree with ABC that they can save you a bit of time and legwork as long as you check the info that they give you.
We came up with hsbc too, so did our broker
We came up with hsbc too, so did our broker
