Sponsors - ruffled feathers

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[quote author=Ryan]
[quote author=tookey]
[quote author=Ryan]
I'd also have to say, brokers are a very different breed of human. Why anyone would go to one is beyond me. Brokers only refer business to those that pay the highest commission + trail. It's not about what's best for the client.

Ryan Ryan Ryan. Mate you just don't understand what a mortgage broker is all about. Let me correct a few misconceptions that you obviously have about brokers.

Anyone considering taking out a loan or wanting to check that their existing loan is being charged a good interest rate would be mad to go to a bank instead of a broker.

For example assume a client goes to their Bank the NAB and speaks to the local home loan manager at manly branch to borrow a $2m home loan. Firstly that person probably has at all of 3 months experience in lending and usually english is not their first language (in jest).

Secondly they will tell the client that NAB can offer a discount of 0.70% discount off their standard variable rate. If the client is an idiot they will accept when they tell them that they cannot get a better interest rate elsewhere.

However if the client is smart they will contact 2 or 3 brokers in the area and find out that they can obtain a 1% interest rate concession from either CBA or St george.

The client can obtain a 0.25% better interest rate going through a broker than his own Branch. Believe me it happens all the time. And it doesn't cost the client a cent as the bank pays the broker direct from its profit (ie the commission payment is not passed on to the client in any way). The client has also saved themselves countless hours of investigating what other lenders have to offer of they tried to do it themselves.

If you think that a $2m loan is unrealistic then asume the client wants a $300 loan instead. He goes to his NAB branch and is offered the choice of a professional package with an interest rate of 7.62% pa and a $375 annual fee or a basic loan @7.87% pa.

The same client then goes to a broker who says that ING can give him an interest rate of 7,54% pa or Heritage Building Society at 7,45% pa. the client takles the cheaper loan which also comes with no ongoing fees.

Your comment about brokers putting clients with lenders who pay the most commision is absolute crap. 85-90% of my clients want to deal with the 5 major banks. The other 10-15% deal with lenders such as heritage, ING, Ciitibank, Bankwest and Suncorp.

All of the lenders that I have mentioned pay exactly the same commission rates so there is no benefit to me as a broker to put my client with any one particular lender. I simply put the client to who has the best rate and product features that the client wants.

The lenders who offer higher commissions are generally the second tier lenders such as Liberty, Bluestone etc who deal with clients who are discharged bankrupts and who have numerous defaults on their credit history. They offer higher commissions as they charge their clients nterest rates of 8-10%.

Another benefit of clients dealing with a broker is that we are their bank manager for as long as we are still a broker (I have been a broker for the past 10 years and will probably be for another 10 at least).

Being with NAB you know how often you get moved around from branch to branch. How many times have you come accross clients who said that they had a great relationship with their bank manager until the Bank moved him/her.

The new manager is a dickhead and the client then starts to look at taking his business elsewhere. I still deal with clients that I dealt with 15 years ago in the Bank. They deal with me because they know that I get them the best deals that I can.

There are many great brokers on the northern beaches and my clients wouldn't deal with a bank lender direct ever again. I would say without a doubt that the majority of my clients have received a better interest rate from me than they would have by going direct to a bank. They have also received better service and can deal with someone who knows their financial situation.

There ends your lesson in mortgage brokers. I hope that you now have a better undestanding as to how we work. :D







[/quote]

Your lesson is substantially flawed Fro.




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[/quote]

WTF are you on about Ryan, Its got nothing to do with me.

[/quote]

Ryan has no doubt just come back from one of his corporate lunches.
:D
 
I have to say the business relationship manager that I deal with (Westpac) is an outstanding advertisement for his employer and believes passionately in them too.
 
my bad.

But i am starting to look at places and loans.

Might have to see who has the best offer, tookey or ryan
 
I have to say the business relationship manager that I deal with (Westpac) is an outstanding advertisement for his employer and believes passionately in them too.

Unfortunately with Bank's they rarely reciprocate the same passion and loyalty that the staff show to it. Since the eighties hundreds of thousands of employees have found this out the hard way.
 
Hi Guys.
First to Ryan, I wasn't holding a gun to management, Grant whom I spoke with today about this thread is in my opinion doing a great job, as is his team. What I was commenting on was Mata's initial thread and responding, showing my dissapointment about not being given the opportunity to offer our services based on a business plan I submitted to the club earlier this year. As Grant pointed out to me what is currently being done by Beaver and his team does not necessarily prohibit my business doing what we want to do. I appreciated Grant's frankness about the situation and he understands our position abeit the fact it is being dicussed on this forum. I think we are all better at this point of time.

NAB sould offer the club a large sponsorship, it would be great for the club, you would have my support for that, as each of us true supporters wish the club to be successful.

I think Ryan (and this only my opinion) that you are overly critical of brokers. To be clear CLS is NOT a broker we are a mortgage originator. Our clients are not only mums & dads but brokers also. The brokers clients are not hyundai's, they are people who are looking for good service, and a fair rate. I am glad you are providing great service to your clients, but unfortuneatly Bank turn around times on approvals is very slow for some circumstances hence the need for brokers. From my understanding Tookey is pretty good at his job and his clients are happy with him.

I concur with Tookey on the comment about broker's & mortgage originators being able to offer cheaper bank products to clients than the actual branches. I utilise a funder in Melb for fixed rates and we can offer a cheaper rate on fixed rates up to 0.25% cheaper than its own branches. I can't work that one out? I'm happy at any time to discuss over a beer what my business is about and what role brokers have in the scheme of things, I think that your overall view point of the industry has been somewhat blurred by bad apples in the industry, I know of little operators who do what you suggest to their clients.

Nodd, I would suggest everyone has a bad news story about every lender in the market place, the important point is how did that institution handle the bad experience when it became a problem.

Oh, Ryan, my clients work around Australia particularly northern Australia, I live in Newcastle. What I'm getting at is that I'm not a short drive away, we just wanted to offer Manly supporters a good loan at a good price, give them some extra benefits for next season, and the club make some money, and of course we make some money so we could continue the sponsorship. That sounded like a win/win for everyone.

I have apologised to Grant re the last sentence of one of my earlier replies and regret putting it in the post. I was still pretty pissed off at the time and since calmed down.

I think we should let this thread die an ugly death and move on, as I will not be commenting any further. Please keep in mind I did not start this thread and was only commenting about our view point. I should have kept my mouth shut. A leason learnt.
:bdh: :bdh: :bdh:
 
I am certain that the Bulldogs ran a Home Loan scheme some years ago. I have no idea whether it is still operational. It would be interesting to hear from the protaganists in this debate if the Sea Eagles Home Loan is based on their model.
 
I am certain that the Bulldogs ran a Home Loan scheme some years ago. I have no idea whether it is still operational. It would be interesting to hear from the protaganists in this debate if the Sea Eagles Home Loan is based on their model.

I am pretty sure that Bulldogs home loans died a natural death quite a while ago.

Yes Home loans are now one of their major sponsors.
 
This thread is a realistic, true to life, advertisement for this website.

And we know that club management read the posts on ths site.

I still believe that the club should be getting a higher percentage than 15% from Sea eagles Home loans.
 
Tigers had a home loan product as well I believe.

Tookey - I will openly admit my theories on Brokers are through 1st hand experience. Not positive experiences either. I just cut the lot of them loose.

That said, each to their own. I know a guy who refinanced through a Broker from Nab to CBA some years ago. $800k loan (home loan). The broker was telling the guy what a fantastic deal he was getting....he ended up paying 0.25% MORE, without realising.....I told the Banker to phone the client and tell him. I won't tell you what this customer said about Brokers. Fortunately though, he Broker was paid his handsome commission, and is now receiving a handy trail...at the customers expense.

Tookey - you may be an honest Broker. I don't discount that. But can you tell me theoretically, would there by a fair slice of them out there, that basically will "do what it takes" to get a loan through (you know what I mean), and refer people through a stream that pay the highest commission / trail?
 
Of course he won't admit that Ryan. He has a conflict of interest and is unlikely to smear his profession, is he?
 

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