Monday, 3 December 2012

The things the banks and brokers don't tell you

The Millionaire on Heels has dealt with most of the Big 4 banks and a number of other financial institutions and mortgage brokers over the years in her quest for the perfect mortgage.  Here are 10 useful tips I've learned that the banks and brokers seem reluctant to pass on themselves.
  1. The banks and the larger building societies that brokers have on their panels may not have the best home loan for you.  The loans brokers have on their panels are the ones that pay them commission.  So it's important that you consider a range of products from other lenders.  Those that are less advertised may be better value (the lender is not paying for the advertising and can pass some of the savings on to you!).
  2. No matter what they say in their marketing material, brokers are influenced by the commission they receive.  If you don't believe this, ask a broker for a NAB mortgage.  They will offer you a Homeside (NAB subsidiary) product because it pays trailing commission and the NAB branded product does not.  Many of the best loan products out there, such as affiliate loans, have low or no commissions and the brokers will not touch them.  So as I said above, it's essential to do some of your own research.