Hi everyone

The Banking Royal Commission is attracting much comment as it progresses.  This article by well-known finance commentator Peter Switzer caught my eye, as it puts some perspective back into the role of mortgage brokers.  The key paragraphs are…

“On mortgage brokers, my experience with these people is that they have made it easy for borrowers to get loans at lower interest rates than what many of us could get from a bank. Their existence and their general efforts to get their clients the best rate have made banks more competitive on rates.
Let’s face it, all professions and industries have bad people — even lawyers can be dodgy over-chargers — but most mortgage brokers have done a great job and I don’t care if they get commissions if they put me into a 3.8% loan rather than a 4.5% loan my bank might offer me.
Most of us hate banks, especially when they say no to a loan, and mortgage brokers have helped customers not only get lower interest rates but also have found people who would say yes to our requests for loans.”

As a mortgage broker, I see numerous clients who have tried online brokers before they come to me.  There are a number of key lessons…

• Many online brokers are aligned with specific banks and do not provide a service across a wide variety of banks and products
• I don’t apply for a loan on behalf of a client unless I am pretty sure it will be approved.  Clients who apply direct and are not approved will incur a strike on their credit file.  Just as a last phone bill payment or missed credit card payment does.  This is a crucial factor is being able to access future finance
• My network with the business development managers across over 30 financial institutions means I have the conversation first to work out whether approval is likely prior to a formal application

Here is the full article if you are interested
http://www.switzer.com.au/the-experts/peter-switzer-expert/are-financial-planners-and-mortgage-brokers-that-bad20181704/

Please let me know if you have any questions or would like to discuss other aspects of the mortgage broker debate.

During Separation or Divorce, see a Broker to assist you navigate through all the facts, figures and lending options.

Let Rachael help set you up for the best fresh start possible.

Using a Broker to assist you with the financial aspects of a Divorce or Relationship Separation can
provide vast benefits.
A Broker can navigate you along the right path to find the best lender and structure to suit your circumstances. As many Brokers have both inside knowledge and significant access to a variety of bank products and policies, they can provide you with an accurate and valuable choice of lenders. When you visit a traditional bank, you are given information about only their products. With a Broker, they can compare multiple lenders to find the “perfect fiit” for you and your financial situation.
Women often have difficulty after financial separation as they often have to acquire their first independent credit facilities .. In this instance they may find that, as their disposable income is depleted, the bank treats them differently.
Your old bank may have been the perfect bank while you were a couple, however it may not be the perfect fit for you now that you are single. A broker will go through your financial situation in depth and find the lender that will be your best option in your new circumstances.
When creating a new future, make a fresh start and seek out all the options. Contact your Broker,
Rachael Hunter, on 0487 922 715.

Having an understanding of your credit file, credit activity, and your current Credit Score is important. Especially if you are entering into new finance contracts

Damage may have been done to your credit file during financial separation without you being aware. It can occur by not paying the mortgage on time, missing a utilities bill payment, or even because you have not received a “reminder” notice, and the insurance or phone bill has become overdue.
To prevent you from inadvertently defaulting on any credit facilities, be sure to redirect your mail, or ensure your bills are sent to your email.
If you wish to check your credit file, here are some reputable sites which can provide you with a free credit check:

www.mycreditfile.com.au

www.veda.com.au

www.equifax.com.au

A negative credit score may impact a variety of financial transactions you can do in the future, including home approvals, car loan (asset finance) and credit limit increases/changes.

By understanding your credit score and being aware of any negative credit history, you will be better positioned to ensure a successful outcome on your next Credit Application.