Why you should be wary of one stop shops

 

Most people struggle to fit everything in to the time we have available to us each day.

In fact, there are plenty of inventions that have promised to give us more time with our families by automating or simplifying tasks and decision-making.

Unfortunately, when it comes to finance, this mindset has resulted in the creation of some one stop shops where not only can you apply for a home loan you can also buy a property that’s supposedly “perfect” for your investment goals.

These properties are usually off-the-plan units and in the worst-case scenario, the “adviser” is usually receiving an undisclosed kickback or commission to sell it to you.

AdvisorThat’s hardly impartial advice is it?

The banking royal commission has unearthed a plethora of questionable practices, including a number of instances where unethical brokers were convincing clients to buy properties from which they received sales commissions.

Of course, this is a clear conflict of interest and is nowhere near professional or unbiased advice.

One of the brokers was rapped over the knuckles but still remains in the industry, which is not good enough if you ask me.

He should be expelled and never be allowed to be a mortgage broker again.

People like that give the industry a bad name when the vast majority of practitioners strive to achieve the best outcomes for their clients.

As I’ve mentioned before, the inquiry seems to only concentrate on stories of woe and not on the hundreds of thousands of great results for mortgage broking clients.

And, as the inquiry is highlighting, major lenders seem quite adept at flouting the rules, so a strong mortgage broking industry is a necessity to help keep them honest.

First home buyer New

While there are specialist property investment mortgage brokers like Intuitive Finance, we are not in the business of selling properties to clients.

That crosses a line, which is why you should be wary of one stop shops.

If you receive “advice” from a broker that results in your finance being linked to a property transaction that they are also party to then you must not proceed, whether they have disclosed their commission or not.

The only people who should be offering property investment advice are those who are qualified to do so and who have significant experience under their belts.

It’s also important to take some ownership for your financial decisions as well, which means that if you think you’re borrowing more than you can manage then it makes no sense for you to proceed with the loan.

Discuss your specific needs & formulate the right strategy for you. Get in touch to organise your complimentary 60min session today!

The information provided in this article is general in nature and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information you should consider the appropriateness of the information with regard to your objectives, financial situation and needs.

Andrew Mirams

Andrew Mirams

Andrew Mirams is the Managing Director of Intuitive Finance and is a highly qualified mortgage advisor who holds dual diplomas in Financial Planning (Financial Services) and Banking and Finance (Mortgage Broking). Andrew’s expertise covers all aspects of lending for a diverse range of applications – from first home buyer loans or property upgrader loans, property investor loans, expatriates and loans for self-employed. With almost 30 years of experience, Andrew has been acknowledged by the mortgage industry as one of its best performers with multiple awards including regularly featuring in both the top 100 mortgage brokers list and Top 50 Elite business writers. Andrew was voted Victoria's favourite Mortgage Broker at the 2015 Investors Choice Awards, and won again for the same category at the 2017 Better Business Awards. The team at Intuitive Finance has also figured prominently by winning the 2016 "Best Independent Office (<5 brokers)" and "Best customer Service" Awards, and more recently at the 2017 MFAA National Awards, they also took out the "Best Customer Service" Award, a recognition which speaks for itself! Visit Intuitive Finance for more information.
Andrew Mirams

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