To Broker Or Not To Broker….. This Is The Question!

So, starting with the elephant in the room!  Yes, Unfortunately, like a lot of businesses out there, there are some brokers who perhaps don’t do what they should, causing negativity within the industry!   Not all businesses are created equally (Thank goodness!) and most of us just want to do the right thing by our customer and create a lending strategy that is going to support their lifestyle and their dreams!

I know, so maybe that last bit sounded a little bit on the cheesy side of things, however it is actually true, when you have the capacity to lend large amounts of money you have the capacity to bring possibility to the table..  realising a business dream, renovating a house to live in or even planning for your retirement, there is a lot of responsibility that a Broker has to carry!      It is our job to make sure we are doing the right thing by you and looking after your interests.

What is the benefit then?  There are a few main reasons why you should consider a broker…..

If they are a good and experienced Broker they will…

• Know the right bank to approach on your behalf considering your circumstances. Some banks have really strict policies on some things, others specialise in these categories.
• Negotiate terms on your behalf – that is… number of years, debt amount, interest rates, fixed verses variable etc
• Know when to include some of their relationship partners that they may have in their network (financial planner, accountant, property consultant etc) at the end of the day you really want a one stop shop.
• Know what is important to you when it comes to your lending – is it an offset account? Cash flow for a business? term in years? or even interest rate?

Yeah great, but what does this really mean to me………..

Well, the trouble you have when you approach a bank yourself, is that you don’t know what they are looking for.. you make an application and it gets declined..  why?  They wont necessarily tell you why…  Then you apply to another bank, that bank may have considered you previously but now that the first bank has rejected you …. so will the next one and so on.

The reason for this is due to each time you make a credit application – a credit check is being done on you.  This is done by a central agency and means that all banks have access to view these records.

Therefore it can be so important to know which bank will like your application and after a discussion with your broker he/she will know what is important to you with your lending..

If your broker is good, they may even be able to think of some lending options you may never have thought of too!  Don’t forget, if they have experience they will have constructed many loans and know what can work well for you.

The true meaning of the word Broker… is to arrange or negotiate.. a person who buys and sells goods or assets for others..

So the key is..  do your research, make sure your Broker is:

• Experienced
• Has a process
• Understands what you need
• Will supply you with written advice
• Has a great network of people they can introduce you to – should you need a Financial Advisor, Accountant, Insurance etc.
• Have a Website that gives you some insight and confidence in them
• Has a Social Media Presence – so you can get information from them, about them and also see what others think too!
• Has a network for banks, Financial Institutions and actually has a relationship with them!
• Has a system and process in place to manage and process your application from start to finish, this ensures that there is constant communication and follow up!