"A Tale of Two Sides"
And welcome to a story I like to call “A tale of TWO sides”.
Now I am a fan of a tall tale as much as the next guy and I have been known to bend the facts a little to make my story more humorous in the telling, after all the old saying, “don’t let the truth get in the way of a good story” rings true in every comedians bag of tricks.
I would like to share with you a very classic example of the media taking some facts, skirting the edge of completely giving you all of those facts and picking and choosing which ones will spin this yarn in a very sell-able way.
And at the same time I will shed a little light for you and give “This Man’s Opinion” or in this case the rebuttal for the accused. 😉
The article I am addressing is titled “4 things mortgage brokers never tell you” Da Da Daaaaa!!! (You will need to read the article for this to make sense, I have attached it below for your viewing pleasure. Candy bars and drinks will also be available in the foyer. 😉 )
4 Things Mortgage Brokers Never Tell You:
1. Brokers don’t compare the entire market.
As brokers we do use what is called an “Aggregator” as our intermediary between the banks and ourselves, the aggregators role is to monitor us shifty cabbage eating brokers and to ensure that we are compliant in what we do and to come down upon us mere mortals like the wrath of Thor if we fail in our obligations to you the customer.
Now depending on which aggregator you are registered with it does depend on what lenders you have access to in our “panel” I would recommend asking your broker who he is registered with and you can google away to see who you are dealing with, Now us here at Simply we don’t deal in the back alley knife fighting cup game trickster playing type of field and we have access to every reputable lender that you are ever going to deal with, simply because our aggregator is one of the best and largest, and we attach ourselves to them for this reason.
If a Lender or “smaller lender” as the article describes is not on our aggregators panel, I would ask the question as to why that lender s not “trusted” or deemed a “satisfactory” fit to be offered in the market, after all our Aggregator looks at our compliance and what is best for us to offer to our clients.
2. Brokers receive a higher commission for recommending certain home loans.
I WISH!! After all I do come to work to make money… as most of us who do not live on Mount Olympus do right!
The “deals” that we see in the home loan space are directed at the home owners, I will give the example of NAB’s current offer of the 250,000 velocity rewards points. This is a monster offer which is directed at the home loan owner, I receive $0 extra commission from offering this loan than I do by offering any other home loan product on the panel.
Do I direct my clients towards this deal over other cheaper rates by other lenders in the market ….. Of course i do, it's 250,000 velocity rewards points!!!! GO ON A HOLIDAY!!!
Does this effect my personal bank balance in any way .. No, unless you are paying me to water the animals and feed the plants then I receive $0 difference in financial benefit of the different products.
As for smaller lenders not being able to afford to pay broker commissions … Wahahahaha! Is all I really have to say to that. However, since you cannot read my mind, some pen to paper I will give you: It is cheaper for a lender to pay a broker a commission than it is for them to pay the outgoings on maintaining staff, rent, utilities, legal etc etc of a physical branch location.
When a broker brings in a loan to a lender, very little effort was spent on the lenders part to gain this business, and as a result lenders offer deals to brokers that you very often will not be able to receive through a branch (branches have targets of bringing in new business per month and kpi’s to hit the same as any business).
3. Brokers are not property experts.
OK, I’ll give them this one, Nailed it!!
It does kind of speak for its self though; If you need your tax done … Go see a tax agent.If you need finance… go see a Broker.If you need property advice … go see a Property Broker.If you need a financial advice and retirement plan … go see a Planner
As much as it was a working model in the 1920’s to gain all of this advice from your local tavern owner I do question the sound reasoning behind it a 100 years later (I know right, 100 years ago was the start of the 20’s!!! bring back the vests and hats I say. 😉
4. You can do it yourself.
Of course you can, I have faith in you my beloved readers, all two of you (thanks mum!) If you are one of my clients you have heard me tell you at every stage, “research, observe and cheat.” Use all of the information available to you and steal as many good ideas as you can, and if you find out something I don’t know tell me about it and I will do the same. “If we all row together, we all grow together” –Shaun Fox 23/06/16 ;)
But where your broker comes in handy is we do all of the paperwork and the arguing with the bank, we have all had outstanding docs, shortfalls in vals, payslips not matching up etc etc.
And that’s what your broker does! We deal with the “horrible” so that you do not have to. Well there it is audience, the chilling conclusion to the cloak and dagger: “A tale of TWO sides”
Soon to be in theaters near you 😉