How does a mortgage broker work for you
We are in touch with the market every single day, we see changes in regulation and lenders policy as they happen. A good mortgage broker will provide you with expert advice in writing with full disclosure of why they are recommending a product and how much commission they will receive. If your mortgage broker isn’t prepared to give you all of the facts – move on and find a mortgage broker who does – a mortgage broker like Peach.
So what does your mortgage broker do
In a nutshell we:
- we get some basic information from you
- we calculate how much you can borrow and what your repayments are
- we explain all of the features, the fees and charges
- we explain things like (lenders mortgage insurance)
- we fully disclose all commissions that we will receive
- we look at all of the options available to us and recommend products and structure that will give you the best outcome
- we submit the application and manage it through to ready for settlement
- we will pay you our famous cash rebate once we receive our commission
Don’t hang around waiting for appointments – we don’t have to meet with you to get an application started.
Peach mortgage brokers are not paid any commission
Our mortgage brokers are paid a flat hourly rate and receive no volume incentives or share of commissions. In fact the only bonus our mortgage brokers are paid is when you, the client compliment us for a job well done.
Keep in mind that we only get paid if your application is successful
It isn’t in our interest or your interest to submit applications that are not going to succeed – after all we end up doing work for nothing and you end up with a damaged credit history. As a result we will methodically check your income and your situation to ensure that it fits with what the lender expects and only then will be submit an application. We average less than one failed application a year – and they only happen when information has been withheld from us.
We have over 20 lenders on our panel and each lender has a range of loans and features – this means we can choose the most suitable product for you from literally hundreds of options. We will check all of your paper work and help you prepare an application then we lodge everything and follow up through the process. Just as a bank employee would do, however we can select from a much wider range of products and generally speaking we are more experienced and probably better qualified to provide you advice ( all Peach Mortgage Brokers hold Diploma Financial Service). The lenders save money because we are doing a lot of the work and we are bringing clients to them that they may not have otherwise met. As a result you get the same loan and sometimes, because we can negotiate you get a better deal than you would get by going direct or online.
With around half of all new loans now written by mortgage brokers and the added protection of the National Consumer Credit Protection legislation – there is little doubt that mortgage broker’s offer a better experience and potentially real savings for their clients. However many brokers are now outsourcing their processing in order to save money while we prefer to maintain control of the process meaning you are dealing with Peach staff at all times.
What’s different about Peach Home Loans?
Apart from the fact that we pioneered the idea of sharing some of our commission with you and this obviously saves you money. We also pioneered a streamlined home loan application process – but of course we still have to work within the lender’s requirements.
In Australia all mortgage brokers must be qualified and registered with ASIC in order to provide you with advice and arrange your home loan. Lenders pay mortgage brokers commissions for arranging a home loan but they don’t want to make payments to individual mortgage brokers and as a result the vast majority of mortgage brokers are members of ‘aggregation groups’ who work as a clearing house for commission payments.
The aggregation group arranges the lending panel so not all groups offer all lenders. They provide a further level of training and support to their members and also act in a supervisory role to ensure that their mortgage brokers are working within lender’s and regulator’s requirements. The aggregation group normally takes a share of the brokers commission and may charge for additional services. Usually aggregators hold an Australian Credit Licence with their mortgage brokers operating as “Credit Representatives” under their licence.
Peach holds its own Australian Credit Licence and while it is a member of Vow aggregation group which is owned by the Yellow Brick Road group, Peach is a completely independent and privately owned business.
As a consumer you should be aware that many of the larger aggregation groups are now owned by the major banks. Aussie home loans is owned by CBA, while PLAN, Choice and FAST are owned by NAB and Macquarie have significant holding in Connective.
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