Shopping Around for a Better Deal

Tom* is a CEO of a well established company and earns a significant income.  He and his wife, Mary*, had sold their home and had signed a contract to purchase their new family home.  They had an 8 week settlement timeframe.
 
As a mature person in an influential position, and no stranger to purchasing property or arranging finance, Tom felt confident of researching the market and ‘haggling’ for the best deal.
 
He also knew that because he was borrowing close to $1.3M at a relatively low LVR he would be able to get Lenders and Mortgage Brokers to compete for his loan.
 
After four weeks of haggling, offers, and counter-offers ~ Tom had identified a Loan Product that he believed to be the most competitive in the marketplace.  Nonetheless, when his Financial Planner advised him to consider using Independent Mortgage Planners he agreed to take a quick look.
 
At first Tom thought it was simply a matter of getting us to give him another “quote” or beat the offer he already had on a straight interest rate comparison.  However, once we explained our services and the power of a cash back home loan he agreed to engage our services.
 
The results of our analysis:
 
  • Tom had negotiated a good deal.  Not only had he achieved a better interest rate offer from the Lender than a Mortgage Broker could have obtained the Lender also agreed to waive most of their fees and charges
 
  • But the Loan Product that Tom had negotiated so hard to secure did not have certain features and capabilities that Tom said were mandatory for his situation.  The Lender had omitted to point this out despite Tom making it clear to them
 
  • Within 24 hours we completed our analysis and identified a more competitive Loan Product than Tom had spent nearly a month finding - for two simple reasons:
 
  • Firstly, Lenders make it almost impossible to compare ‘apples with apples’ unless you have significant inside industry knowledge, experience and data; and
 
  • Tom couldn’t negotiate with the Lender we identified as they only make their Products available to Licensed Brokers and don’t deal direct with the Public
 
  • Our analysis identified a total interest and cost saving of over $156,000
 
  • Within two weeks of settlement we made the first rebate to Tom & Mary's home loan.  The amount was more than double our one-off service fee
 
  • Every  month for the life of their loan Tom & Mary will receive another rebate directly off the principal of their home loan assisting them to own their home sooner whether they make additional repayments or not
 
 
Editors Note:  The time Tom spent (wasted) trying to find the best deal burnt up a lot of their settlement time causing unnecessary stress and anxiety for all concerned when it came time to settle the loan.  When it comes to something as important and expensive as your home loan don't try and do it yourself - use the services of an independent & unbiased Professional.
 
 
*     The names have been changed. All other information is accurate and based on a real life Client situation.