Mortgages – The Good, The Bad and The Ugly
Brent Kelly, Director, Kelly Wealth Services
I have been in the finance and lending game for all of my working life and I have never seen it so competitive and complex all the same time.
It is complex because with all the talk and rhetoric about banks being tough on lending, which is driven by APRA and ASIC our banking regulators, this is a real thing. Borrowing money is more complex today and harder to access than even three years ago. That’s a reality. However watching the slick advertising from the banks and building societies about the best deals on refinancing now, you would think money DOES grow on trees.
There are still banks, building societies and lenders out there who do want to lend money and they have very, very competitive rates and deals. However their brand may be unfamiliar. You may not see their advertising on the side of a bus but their money is still as real as the Big Four majors and competition is fierce.
When most people I meet want a home loan or an investment property loan, they seek four things.
- HONESTY. Good old fashion honesty
- STRAIGHT TALKING. They don’t want to get confused with financial terms and bored with sales rhetoric.
- GENUINE ADVICE. Does transaction suit their needs and will it put them in a better financial position in the long-term. Often our advice covers more than just the loan. We look deeper and will examine every part of their personal banking, offer a different perspective and help tidy up and streamline.
- COMPETITIVE RATE AND PRODUCT. A competitive deal that will give them an advantage financially and is worth the change. All clients realize that we earn an income from helping them but they will get the best product to suit and rate that we can find.
When people come in and see us for a mortgage health check, they will often acknowledge that their current rate is no longer competitive and may struggle with perceived hassle to get the ball rolling and gather the necessary paperwork. So we will often suggest that they approach their Lender direct and request a better deal.
What I’m sick of, is when the bank says,”No, sorry this is the best we can do.”, the client then comes back to us for assistance, (which is great) and we will successfully gain approval with an alternative Lender after many (unpaid) hours. BUT just when the bank realizes,”Hey, this person is actually leaving, I can’t believe they’re going to leave us. We had better do something about it now.” Only THEN do they offer the client a better deal!
In the meantime, the client has had to waste their time and our time, to get any sort of Customer Service from their bank. And the stupid thing is, most clients are so cynical of this behaviour from their bank, that they shake their head and say, “Sorry, too little, too late!”.
So, the moral of the story is, you can’t train ethics and good old fashioned, honest and genuine customer service.
You either have an innate want, to help and serve others, or you do not.
So take the slick advertising and marketing, touting that your bank cares, with a grain of salt. Instead find someone who is interested in you and your financial well-being and can do all the leg-work with the lenders to find what is right for you and will go into bat for you.
Can I suggest you start with Lainie……
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