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Help us help you.

Higher interest rates, increased fees, less flexibility and fewer options. That’s how borrowers could lose out if the banking Royal Commission’s recommendations around how mortgage brokers are paid are implemented.

By now you’ve seen in the news that the banking Royal Commission recently recommended that the cost of using a mortgage broker should be transferred from the banks to the customers.

Now, first things first: We’re here to help and will continue to act with your best interests at heart.

Our business has been built on putting the needs of our clients first. In fact, it’s the reason we’ve been able to serve the Canberra community for close to two decades now and the reason why over 90% of our new business comes from existing clients or word of mouth referrals. If we didn’t have your needs motivating everything single thing we do, we wouldn’t have so many of you recommending us to your friends and family.

It’s in this continued commitment to act always in your best interests, that we feel it’s important you fully understand how some of the Royal Commission recommendations could impact you going forward.

There’s still uncertainty as to how exactly the proposed changes could be implemented but depending on the outcome, it could mean additional costs for borrowers.

Considering the objective of the Royal Commission was to ensure better consumer outcomes, we’re not sure how increasing borrowing costs aligns with your best interests.

The recommendations to blanket ban on commissions and removal trail commissions would significantly lower broker remuneration, kill competition between lenders, reduce access to credit and drive up the cost of borrowing for Canberra home owners.

Mortgage & Finance Association of Australia (MFAA) CEO Mike Felton explains: “The recommendations on brokers represent a massive win for the big banks. The Royal Commission was set up to protect (consumers) from big bank power but has simply entrenched it further”.

 

Let’s look at just some of the value you currently receive from us, your local mortgage broker:

  • Clarity around how much you can spend on a property

    • We conduct thorough investigations into all your lending options to ensure you’re not risking your deposit at Auction by bidding more than a lender will let you borrow. If you’re upgrading, we’ll run scenarios for the sale of your existing home and come up with the optimum way to execute your buy/ sell strategy without putting yourself under financial risk.
  • A step-by-step action plan to purchase your home

    • You’ll have someone on your side – available to answer all your questions along the way – guiding and supporting you through each stage of the purchasing/ upgrading process.
  • We’ll find you ways to save money

    • If there’s a way to save money on your loans, we’ll find it! It may involve negotiating a cheaper interest rate. It may require switching to a loan with features you actually need. Once we’ve run the figures and work out you could save $23,000* in interest costs over 3 years, or $10,632* p.a in interest, you’ll wish you reached out to us sooner. *These are real-life interest savings we identified for homeowners simply by reviewing their existing loans. 
  • We can review your home loan

    • Maybe you’d like to increase your loan to consolidate personal debt. Maybe you want to release the family guarantee. When we review your loans, we don’t just check the interest rate. We’ll carefully consider what you’re hoping to achieve and ensure your existing loan structure can help you get there.
  • You get a personal project manager

    • We work behind the scenes to ensure everything happens quickly, when it’s supposed to. We chase your application with the lender, liaise with the agent and work closely with your solicitor to ensure your property settles ASAP. The same goes for loan restructures because we know how urgent it is to settle things quickly, once you realise how much you’ll save in monthly repayments.
  • You receive a tailored loan solution to fit your needs

    • There is never a “one-fits-all” lending solution. Before we recommend a loan structure to you, we have conversations with lenders, double check lending policy and calculate different lending scenarios so it’s completely clear why our recommended solution really is the right option for you.
  • You get as much (or as little) analysis as you like

    • If you’re someone who wants all the charts and tables and comparison analysis before taking making a decision, that’s what you’ll get. If you’re more of a ‘big picture’ person and prefer loan structure diagrams instead, that’s what you’ll get. We work for you, meaning YOU call the shots.
  • You receive plain-language finance solutions

    • There’s nothing worse than feeling like you don’t understand all the terminology or being confused by the guy at the local bank. It’s our job to decode this “bank speak” and explain things in a meaningful way, so you can finally take control of your home finances and make decisions that will improve your future.
  • You can expect fast turnaround (so you won’t miss out on that property)

    • The secret to getting your home loan approved quickly is knowing *exactly* how your lender wants your application presented. When you work with an agile team who knows lender processes inside and out and understands the importance of getting a loan approved faster when there’s a race to exchange, you can be sure there is no stone upturned to get your loan approved ASAP.
  • Round the clock support

    • Some lenders process applications around the clock, meaning questions can be asked about your application outside of business hours and on weekends. It’s our job to handle all these queries, whenever they’re asked – so we do. Otherwise, your loan approval or settlement can be delayed.
  • Support from our entire team 

    • We understand how frustrating it is when your questions can’t be answered or progress stops, “because Jimmy’s away and no-one else can help you.” When you work with a mortgage broker at MMO, you get the support of our entire team – i.e. there’s always someone who can help you. Client feedback told us this was important. So many years ago, we restructured our business accordingly. It’s also the reason why many of our client reviews mention more than one person – we work in small teams to ensure you receive the best service possible.

 

And here’s some other benefits you also receive:

  • Buying tips 

    • We share tips on how to negotiate the best purchase price; share the strategies used by experienced property buyers to determine the value of a property; provide auction support; PLUS pass on the lessons we’ve learnt over the last two decades helping clients purchase property all over Australia.
  • Regular home loan reviews 

    • We’re on a mission to ensure no client ever pays more for their home loan than necessary. This means we’ll touch base with you regularly to review your loans to check whether they’re still competitive. Last week, we petitioned a lender to increase their rate discount for an existing client and in the process we saved this particular client…
  • Ongoing support 

    • Clients say that one of the best things about working with us over the long term is having someone to discuss their changing property plans with. ‘Can we afford to buy an investment property?’ ‘Should we lock-in to a fixed rate loan?’ are common scenarios we work through with clients. Having someone available to discuss the feasibility of your plans from a financial perspective, saves you a whole lot of time and stress.
  • Access to our growing Resource Library 

    • MMO clients have access to our growing library of industry-related articles, e-books, loan scenario case-studies, industry presentations and Q&A videos. You also receive the Special Reports we generate for the Canberra Property Market – revealing suburb trends, property price growth patterns, changes in land values and housing affordability trends. We believe it’s our job as the #brokerbehindyou to provide you with all the information you need to make confident, informed decisions about your home loan finances.
  • Introductions to Canberra’s best property service providers 

    • Over the years, we’ve worked with just about everyone in town. Based on this experience and more importantly, feedback from our clients, we’ve created a “Best of the Best” List of Canberra’s best real estate agents, property managers, solicitors, accountants, financial planners, building inspectors, quantity surveyors, gardeners, builders, plumbers and electricians. If you need help managing your home, your sale or your investment property, we can put you in touch with the right people to make sure you’re well looked after.
  • Monthly Updates 

    • Each month we summarise what has been happening in the industry, provide commentary on market developments or potential interest rate changes and deliver it straight to your inbox. Our Monthly Updates are short and to the point, with the sole purpose of highlighting things that may affect you and your loans (so you can do something about it if necessary).
  • Opportunity to join our Client referral program

    • Take the opportunity to be rewarded with gifts and vouchers from some of Canberra’s best service providers and restaurants – simply by telling your family and friends about your experience working with us.

 

What can you do to protect the level of support received from mortgage brokers, going forward?

Right now there’s an industry-wide campaign running for Australian homeowners to send a message to policy makers that they want to continue to be able to access the services of a mortgage broker (like the ones above).

If this is something you want too, there are four easy ways to get behind the campaign:

1. Get others involved: Please talk to your family and friends and let them know what’s at stake for them personally. There’s a lot of talk about how the proposed changes will impact the lending and mortgage industry as a whole. But you need to consider how this will impact you personally.  If you want to rely on a mortgage broker to help you in the future – without additional costs – we all need to share the message to its completely understood how this will will affect Canberra home owners.

2. Take action with your local politician: Contact your Federal MP and let them know how you feel by visiting this site. It takes just a couple of minutes as there’s a pre-populated letter already filled out for you.

3. Sign and share the petition: There is also a petition available at www.brokerbehindyou.com.au – please sign and share the petition to ensure policy makers understand the weight of support behind the channel.

4. Support your local broker (so they can continue to support you!) We’ll be sharing articles here and via our Facebook page, from the perspective of how the changes impact you. We invite you to share and promote it too on your social media platforms.

 

Final word

We’re extremely passionate about helping Canberra home owners make better decisions around their mortgages.

We’re extremely concerned that without access to skilled and experienced mortgage brokers, home owners will not get the support they need to make informed decisions about their mortgages. Even more worrying is that it will prevent those who need the most support, from getting the help they need.

First home buyers should not be left on their own to navigate the purchasing process. Buying a home is the first step to establishing a strong financial future. Without the support to get it right the first time, you could end up putting yourself under financial pressure.

Home owners need access to experienced mortgage professionals, who also know and understand their local market. As someone upgrading your home, you need guidance as to what you should be doing in what order. Otherwise, you risk losing your deposit at Auction or paying for costly-and-generally-unnecessary bridging finance.

Investors need support to implement the right borrowing strategy for their property portfolio. Otherwise, you could end up negating the advantages of owning investment property altogether.

We believe everyone should have access to the support, technical assistance and advice they need to make better decisions about their mortgage. Better home loan decisions lead to an overall stronger financial position. Better home loan decisions help ease financial pressure. Better home loan decisions give you the option to live your life the way you want to.

We’ll continue to do everything we can as a small business, to protect your interests.

Firstly, because it’s our job.

And secondly, it’s the right thing to do.

Award Winning Mortgage Professionals