26 Giffard Street
Williamstown 3016
Ph. 03 9397 7275
Fax. 03 9397 1734
Mobile. 0428 310 165
Email. reidcont@tpg.com.au
ABN: 65 111 801 079
www.reidconsultants.com.au

10th June 2006

From standard variable, to fixed interest, professional packs, low-docs, offset accounts, line of credit and the list goes on. Add to that the four major banks, the second tier banks, credit unions, international financial institutions, speciality lenders and other non-bank lenders, where do you find a product or combination of products that suit your needs?

There are literally thousands of products available. You have two main choices, do it yourself and investigate, spend time and money researching, contacting and visiting various lenders or use a mortgage broker . A greater percentage of people are using mortgage brokers to help them find the best product mix for their needs.

Contrary to the banks opinion and propaganda, they are not there to assist you, they are there to make money for their shareholders and managers. When was the last time your bank approached you to offer you a better choice? Did they say you could get a better product that suited your needs at a lower cost, either interest rate or fees? Let me know and I will go to join!

Why use a mortgage broker? You can get the same result as they can if you had the time and invested the energy, made the calls, did the research and then filled in the forms. What a good mortgage broker offers is knowledge and experience and a good computer system that can compare the thousands of bank products and various lenders to find a combination that suits your needs and circumstances for both now and in the future.

In most cases mortgage brokers do not charge you any money, they are paid by the lenders in the form of an up-front commission and trail commission. These fees are paid to mortgage brokers to bring business in for lenders, who then do not need to employ the same level of sales force as they would otherwise need to compete in the market.

Are all mortgage brokers the same? The simple answer is no. It is largely an unregulated industry, so almost anyone in Victoria can claim to be a mortgage broker. There are some industry originators that brokers may belong to that require a higher degree of education, qualifications and training and that are members of peak organisations that have a standard code of conduct. PLAN Australia for instance, all their members are members of MIAA (Mortgage Industry Association of Australia) and have a minimum of Certificate 4 in Financial Services. Not all brokers are accredited with a large range of lenders, some only deal with three or four lenders, thus restricting your choice.

Even then, the level of experience, the education, the qualifications and the knowledge will be different between brokers. You need to work out where you fit:

• are you after a simple home loan no frills and a salaried employee? - then most brokers should be able to help.
• are you self-employed? - then you need to find someone with experience in that area and who has a knowledge of commercial business so they can assist you (and your accountant) find a solution that fits in with your goals.
• do you need commercial finance and have a company structure? – then you need someone accredited with commercial lenders, understands what is required by the lenders and knows what your business needs are.
• seniors equity loan are a specialty – does your broker have accreditation with the majority of these specialty lenders (not just one) and understands the needs of seniors in terms of pension issues, estate planning, life expectancy etc?

There are numerous websites that provide Mortgage Broker checklists, visit these and see what type of questions you need to ask to be satisfied that the broker you choose will meet your needs and works for you to find a solution to suit your needs and circumstances, both now and in the future.

Reid Consultants service is based on a combination of education, professional qualifications and experience. You get the professional lending skills and experience backed by a solid accounting and tax background with financial planning education and qualifications. We will sit down and listen to what you want to achieve and work a strategy to help you do that, whether it is to finance a business, purchase an investment property, refinance to reduce your monthly commitments or achieve a lifestyle not currently possible. It is about helping you achieve your financial goals and unlocking your financial potential.

We provide for the full range of lending purposes, from residential property (owner occupier, first home owner or investment, bridging, construction including owner - builder, and seniors equity loans), to refinancing, debt consolidation, margin lending, car purchase, equipment finance, commercial lending and development.

Give me a call to find out how to best use bank product to suit your needs and circumstances and what could you borrow based on your income and value of your house, obligation free and no cost appointment, call – 9397 7275

Helping People through Finance