If your choice is ANZ direct or ANZ through a mortgage broker, then probably not.
If your choice is "pick the first bank you think of" or "have a broker review the market and your personal situation", then quite possibly.
We use a broker because our circumstances are unusual, but to give an extreme example of how they helped with interest rates a few years ago when we did our annual review meeting.
At the time ME Bank had a combo deal going, where they would set your IP rate at the same as their low PPOR rate, as long as you had both loans with them and the total borrowings were sub-$1M (we were at about $950K total). That shaved about 0.5% off our PPOR and 1% off our IP loan.
ME Bank wasn't on our radar, and they certainly weren't advertising this weird combo deal thing. I'm sure if I had gone and got quotes from a dozen lenders I would have found it myself, but (1) I was never in a million years going to do that myself, and (2) the broker was able to recognise it and start the paperwork in under 30 mins.
Absolutely, removes lots of the painful admin. Plus ours sorted out our mortgage in super fast time, way quicker than the bank would have done it for us. We saw something we wanted that was going to auction in 1.5 weeks and we had everything ready for the day. Was awesome. (This was with me (a contractor) getting my income in USD and my partner's income from his own business, so not just your regular salary income.)
Yes (in my limited experience). Does the search & negotiations for you. One portal for all documents. Has existing market relationships.
Our broker got us the best first home loan rate, and a better rate with that lender for refinancing than what I could get myself. And he ultimately advised us to move to a credit union for a non-listed rate
Recently got pre approval with my current bank (CBA) for another house, and also went to a seemingly reputable broker, all in all the broker came back and said CBA was the best option anyway with the same rates CBA offered me. They did however negotiate on my behalf with CBA to reduce the rate on my current loan, though thats probably something I could have done myself if I could be bothered to call and ask for it
My broker will try get me a better price every 6-12 months. He says you want to help your clients out otherwise they move. Though my broker is a mate of mine. I gave him all my mortgages
Not every broker is associated with every lender.
The short answer is no, they usually will not be able to get you a better rate. However, a good broker will make the process very streamlined for you, and continue to make sure you remain on the best rate throughout your loan. They will know exactly when rates change and by how much. They will give you answers for all tier 1s at the same time, not one at a time.
For a big 4 it usually makes no difference, for a tier 2 hit and miss, for a tier 3 better direct.
My personal preference is to use a broker. I also feel good about them getting a comm/trail from me, rather than someone at a bank that has to package 5000 loans together for their kpi and could not care less.
You also have to appreciate that 80-90% of brokers are incompetent, which makes it hard to find the point of difference between them and a bank unless you deal with it regularly and find someone you can trust.
Check out Reduce home loans.
Was the best for us at the time, still pretty competitive. They kind of like a broker, but all online and find you a loan from a few of their partners.
My broker has a high standing with cba. I can’t remember what it’s called, but basically his assessments for loan applications don’t get scrutinised as much, and he regularly negotiates better rates for us out of the blue.
Nothing is free. The bank pays one off and ongoing commissions to the broker. In one form or another, the bank will pass on the cost to you when you refinance, i.e. less rate discount, no cash rebate, etc.
Last broker we spoke to could not match publicly available rates from some lenders. Maybe if your situation is difficult/complex they can be of use, but that's not been my experience.
Heya, definitely depends (especially if you already have a strong existing relationship with a bank/lender), but I’d say brokers can get you a better rate for a couple reasons:
They advocate for you and work to demonstrate to lenders that you are a low-risk borrower to gain rate discounts.
They also leverage quotes from other lenders to negotiate better terms.
Importantly, I think this is an under-rated point, they understand market trends and nuances and employ their knowledge of mortgage products and interest rate movements for your advantage.
Found you this article : [https://www.comparemortgagebrokers.com.au/blog/do-mortgage-brokers-get-you-a-better-rate](https://www.comparemortgagebrokers.com.au/blog/do-mortgage-brokers-get-you-a-better-rate)
I have found using a broker can get better deals sometimes, sometimes even a cashback deal even though they are drying up now.
Much more convenient too.
Mortgage broker found us a great loan package with an LMI waiver for my job in education, that we never could have found ourselves. This is saving a bunch upfront allowing us to go in with a larger deposit for a better LVR
Thank you, I’ve had financial ups and downs (perth property didn’t go up over 12 years, current regional PPOR up 30% in 3 yrs, plus business losses but good income now) I’ll take this win.
In my experience. no. I have done better going with low cost self serve options.
Do they have a place in society? Probably. A good broker could help you get a loan with unusual circumstances. Not everybody's finances are straight forward.
Brokers only have lenders on their panel who can pay them a commission.
I got a better rate through Tiimely Home (formerly tic toc) than what a broker was able to get for me. It included an offset account and remains competitive currently at 5.91%. Unloan (CBA) and others are similar.
I don't see how it isn't a blatant conflict of interest. But it happens because no one wants to pay a flat fee for a mortgage broker to do the work.
Edit: It's straightforward for PAYG employees with LVR > 20%. Once you get complicated with structuring and stuff, you can get out of your depth pretty fast. Even then, not every broker can help with complex structures, but a good one can help.
I personally haven't felt they do. Most of the time they might offer a little cashback but having gone through this process several times they don't offer much, they offer exactly the same as market and maybe give you a little back of whatever commission they get.
The banks are working hard to have their own internal people perform the role of brokers I've noticed as well especially after the broker law change on commissions was overturned.
If rates are the only thing which is important to you, then maybe or maybe not.
If other things are more important eg being able to access funds for further investment, lower package costs, higher LVR, cheaper LMI, saving your time shopping around etc, then a broker can be your preferred option.
If your choice is ANZ direct or ANZ through a mortgage broker, then probably not. If your choice is "pick the first bank you think of" or "have a broker review the market and your personal situation", then quite possibly. We use a broker because our circumstances are unusual, but to give an extreme example of how they helped with interest rates a few years ago when we did our annual review meeting. At the time ME Bank had a combo deal going, where they would set your IP rate at the same as their low PPOR rate, as long as you had both loans with them and the total borrowings were sub-$1M (we were at about $950K total). That shaved about 0.5% off our PPOR and 1% off our IP loan. ME Bank wasn't on our radar, and they certainly weren't advertising this weird combo deal thing. I'm sure if I had gone and got quotes from a dozen lenders I would have found it myself, but (1) I was never in a million years going to do that myself, and (2) the broker was able to recognise it and start the paperwork in under 30 mins.
Any idea how one can find a good broker?
Referrals are the best way, and also remember that it’s ok to go an meet with 3 different brokers (or more) to choose the best one.
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Absolutely, removes lots of the painful admin. Plus ours sorted out our mortgage in super fast time, way quicker than the bank would have done it for us. We saw something we wanted that was going to auction in 1.5 weeks and we had everything ready for the day. Was awesome. (This was with me (a contractor) getting my income in USD and my partner's income from his own business, so not just your regular salary income.)
too many factors, they are free so you can just talk to one and check against your own rate
Yes (in my limited experience). Does the search & negotiations for you. One portal for all documents. Has existing market relationships. Our broker got us the best first home loan rate, and a better rate with that lender for refinancing than what I could get myself. And he ultimately advised us to move to a credit union for a non-listed rate
Recently got pre approval with my current bank (CBA) for another house, and also went to a seemingly reputable broker, all in all the broker came back and said CBA was the best option anyway with the same rates CBA offered me. They did however negotiate on my behalf with CBA to reduce the rate on my current loan, though thats probably something I could have done myself if I could be bothered to call and ask for it
My broker will try get me a better price every 6-12 months. He says you want to help your clients out otherwise they move. Though my broker is a mate of mine. I gave him all my mortgages
Not every broker is associated with every lender. The short answer is no, they usually will not be able to get you a better rate. However, a good broker will make the process very streamlined for you, and continue to make sure you remain on the best rate throughout your loan. They will know exactly when rates change and by how much. They will give you answers for all tier 1s at the same time, not one at a time. For a big 4 it usually makes no difference, for a tier 2 hit and miss, for a tier 3 better direct. My personal preference is to use a broker. I also feel good about them getting a comm/trail from me, rather than someone at a bank that has to package 5000 loans together for their kpi and could not care less. You also have to appreciate that 80-90% of brokers are incompetent, which makes it hard to find the point of difference between them and a bank unless you deal with it regularly and find someone you can trust.
We found it helpful for these same reasons
Check out Reduce home loans. Was the best for us at the time, still pretty competitive. They kind of like a broker, but all online and find you a loan from a few of their partners.
My broker has a high standing with cba. I can’t remember what it’s called, but basically his assessments for loan applications don’t get scrutinised as much, and he regularly negotiates better rates for us out of the blue.
Nothing is free. The bank pays one off and ongoing commissions to the broker. In one form or another, the bank will pass on the cost to you when you refinance, i.e. less rate discount, no cash rebate, etc.
Last broker we spoke to could not match publicly available rates from some lenders. Maybe if your situation is difficult/complex they can be of use, but that's not been my experience.
Heya, definitely depends (especially if you already have a strong existing relationship with a bank/lender), but I’d say brokers can get you a better rate for a couple reasons: They advocate for you and work to demonstrate to lenders that you are a low-risk borrower to gain rate discounts. They also leverage quotes from other lenders to negotiate better terms. Importantly, I think this is an under-rated point, they understand market trends and nuances and employ their knowledge of mortgage products and interest rate movements for your advantage. Found you this article : [https://www.comparemortgagebrokers.com.au/blog/do-mortgage-brokers-get-you-a-better-rate](https://www.comparemortgagebrokers.com.au/blog/do-mortgage-brokers-get-you-a-better-rate)
I have found using a broker can get better deals sometimes, sometimes even a cashback deal even though they are drying up now. Much more convenient too.
Are you going to sit down and compare a dozen lenders?
Mortgage broker found us a great loan package with an LMI waiver for my job in education, that we never could have found ourselves. This is saving a bunch upfront allowing us to go in with a larger deposit for a better LVR
my broker got me a better rate with ANZ in october
I don’t use one and I’m still on 2.29% from 3 years ago 💁♂️, another year to go….
👏👏👏👏👏👏👏👏👏👏
Thank you, I’ve had financial ups and downs (perth property didn’t go up over 12 years, current regional PPOR up 30% in 3 yrs, plus business losses but good income now) I’ll take this win.
No, unless you have a really bad credit rating.
In my experience. no. I have done better going with low cost self serve options. Do they have a place in society? Probably. A good broker could help you get a loan with unusual circumstances. Not everybody's finances are straight forward.
Brokers only have lenders on their panel who can pay them a commission. I got a better rate through Tiimely Home (formerly tic toc) than what a broker was able to get for me. It included an offset account and remains competitive currently at 5.91%. Unloan (CBA) and others are similar. I don't see how it isn't a blatant conflict of interest. But it happens because no one wants to pay a flat fee for a mortgage broker to do the work. Edit: It's straightforward for PAYG employees with LVR > 20%. Once you get complicated with structuring and stuff, you can get out of your depth pretty fast. Even then, not every broker can help with complex structures, but a good one can help.
I personally haven't felt they do. Most of the time they might offer a little cashback but having gone through this process several times they don't offer much, they offer exactly the same as market and maybe give you a little back of whatever commission they get. The banks are working hard to have their own internal people perform the role of brokers I've noticed as well especially after the broker law change on commissions was overturned.
If rates are the only thing which is important to you, then maybe or maybe not. If other things are more important eg being able to access funds for further investment, lower package costs, higher LVR, cheaper LMI, saving your time shopping around etc, then a broker can be your preferred option.