Dec 17, 2016  | Tags: mortgage broker, bank, lender, refinance, South Australia financial broker

 

When it comes to buying a property, many people still don’t understand that an experienced lending expert could be an enormous asset.

We have listed some common misconceptions about using a mortgage or finance broker.

“Won’t I get a better deal directly from by bank? I have been a long-term customer”

Mortgage and finance brokers can deal with a great variety of lenders and will get to know you and your specific needs to access the best deal for you, and that includes from your existing provider. While your bank may bend over backwards to retain your business, it is important to at least test the market and see who has the most competitive offers.

“So what is the catch? How can you provide me with a loan at the same rate or lower than my bank and not charge me a fee?”

When you use a broker, there is no additional out of pocket costs. Why wouldn’t you want to take advantage of the benefit of having an expert, with a strong understanding of the market, doing the homework for you? Your finance broker will be remunerated by the lender when you lock in your loan.

“My previous refinance experience took forever and was draining with the number of requests for information, I don't want to go through it again!”

At Calder Finance Broking we will manage the whole process for you and let you know in advance what you are likely to need to try and reduce all of the back and forth.  We will liaise with the lender for you to make sure your loan is completed in a timely manner.

“It cost a lot of money last time I refinanced as I have three properties”

Currently several banks are offering cash back up to $1,500. Obviously, if there is no cashback then your CFB broker will have a look at the overall savings and work out how much better you will be after say, three years. Most people save more going forward than the changeover costs in the first year.

“This offer seems too good to be true, how do I know the banks won’t put the rate up after I take up the offer?”

Any discount we negotiate is for the life of the loan, and while there is no way of stopping a bank changing the rate, you will always have the achieved discount. It wouldn’t be business savvy for a bank to raise rates if other banks are not, due to strong competition.

What Next

Want to know more? Why not give Calder Finance Broking a call on 08 8373 3333 and let our lending specialists help put your mind at ease.

Written and Supplied by Cliff O’Connell of Calder Finance Broking, for more information please visit the Calder Finance website. Please note that Calder Finance Broking Pty Ltd is a Corporate Credit Representative of BLSSA Pty Ltd ABN 69 117 651 760 ACL 391237.