Read this brief real-life case study:
Clint and Debbie are an older couple (56 and 60) who’ve done well to develop 3 townhomes in addition to owning their own home outright and another investment property.
But… They’re worrying.
The $1m of outstanding debt they had borrowed to fund the townhomes was beginning to worry them, they were with Westpac and wanted to transition to a debt-free retirement in the shortest possible time.
Also, they wanted a PLAN to pay off their loans in the fastest possible time and they wanted the lowest interest rates available to them with the lowest fees and decent service.
They saw a Lendi ad on TV and decided to give them a shot… little did they know…
This became another problem.
For some bizarre reason, the amateurs at Lendi were attempting to get a ‘reprice’ with Westpac.
The people at Lendi had told them they might be too old to move banks…. not so.
A reprice is when a borrower goes back to the lender to ask for a reduced rate.
There’s 3 BIG issues with this:
- You get no advice on achieving your goal – repaying the loan in the fastest, most cost-effective and efficient way
- The Structure of the loan does not change to achieve the revised goal
- The interest rate decrease will not be as much as a refinance
A reprice is what a broker might do if they can’t be bothered doing the hard work of fully understanding a clients’ situation…and then doing all the work.
It took another 2 weeks of faffing about, going back and forth and basically wasting time trying to get a ‘reprice’ with Westpac before Clint and Deb responded to an email from me.
We spoke, and they came into the office the next day.
While they were in the office, I sat with them for nearly 3 hours, collecting ALL documentation, completing ALL paperwork and did everything required to lodge a new application in the one sitting.
An Eastern States loan supermarket like Lendi can’t and won’t do this for you.
We ended up swapping the property being used as security to achieve a way better outcome for the client. The lowest price possible, which was done by reducing the loan-to-value ratio to less than <60%.
Some lenders offer discounts for lower loan-to-value ratios. Ask me which one and if they’re an option for you.
What we achieved for Clint and Deb, was impossible for Westpac, Lendi or respectfully, them to achieve doing this without me assisting them: A structure to repay their mortgages in less than 8 years, at a lower cost by 0.70% or >$10,000 per year vs. Westpac.
I placed the loan with Macquarie Bank which have done their usual excellent job in looking after the setup of the facilities. (This was the best option at the time, we’re accredited with around thirty lenders, so we’ll compare them all for you)
Additionally, because of our thoroughness, we discovered some possible accounting savings their accountant had missed!
What you need to know is this: Not all brokers are alike.
Brokering loans can be, especially in this scenario, a pretty tricky affair.
You must work with a Professional Mortgage Broker to get in which you can be 100% confident and have complete peace of mind.
The calibre of brokers at very large home loan factories like Lendi and the rest or budget online lenders like U-Bank (unless you’ve got me helping with the application) probably won’t live up to your expectations, leaving you frustrated, stressed and plans delayed.
If you’ve started the mortgage application process with Tic Toc, Lendi, U Bank, or another mob and you’re having a shit time….it’s not too late to get us in to help. We won’t be offended you didn’t come to us first!
Use this booking link to request a call with me.
Professional Mortgage Broker