I see many on-line distributors of various products spruiking their wares digitally. As many people have come to realise if you’re selling online you better be the cheapest. Or at least cheaper than someone who offers service.
In our game, it’s the same thing.
You can go online and find a mortgage right now. But what if you had a question? Hey, some online brokers also have a chat facility or even a call centre. Buying a complex product like a home loan on-line is fraught with dangerous consequences. I’m not talking about the wrong kind of loan, I’m talking about not getting a loan at all because you just weren’t sure which box to tick.
We’re currently working on half a dozen potential loans. Here’s a brief portrait of what we do:
- We have a couple who are buying an investment property. It’s her first borrowing but he’s done it before a few times. He’s going through the financial mess that is a divorce as well. We ensure that all the data is accurate. More importantly we talk to each/both differently. He understands what an LVR or LMI is. She doesn’t. We’ve completed three application forms only to have the client change their mind. Patience is all important.
- We have a couple of brothers who run a café and want to refinance their home loan and also make an investment. Their expectations of their borrowing capacity are a little exuberant but we demonstrated what they can borrow and re-aligned their expectations with reality.
- We have a family who we’ve been talking with for eight months. We’ve sent them many, many scenarios. Each time they have another idea and approach us for more numbers. Happy to help.
- We have a repeat customer who knows that we have her best financial interests closely aligned to the success of our business. This time around she’s looking to borrow with the aid of a family pledge (for an investment property) – this narrows the field substantially to around 3 banks. It’s further narrowed if she wants to pay interest only. She came to us a year ago after having experienced bad service at another broker.
- We have a business customer looking to borrow for an Invoice Discounting business. We have been ensuring that the deal is back on track every time something happens to derail it. It’s been eight months and – after many many delays – execution of documents is due to start this week (fingers crossed). It has entailed tens of hours of phone conferences, hundreds of emails, calls and texts to each of the parties to ensure that all remain focused and less angry (oh, and a very memorable lunch).
- We have a pair of sisters who first came to us for a home loan around 10 months ago with large personal debts. At that time we suggested that their borrowing capacity had been tremendously reduced because of these debts. Last week they called to say that their personal debts had been cleared and they are now able to borrow for their dream home.
The one thing all these loans have in common is that they were referred to us (mainly by previous customers).
That is a sign of a healthy business. We love it because we make a tremendous difference to people’s lives. Usually people that have been let down many times.
It’s not hard to do what we do. You just have to care (oh, and know what you’re doing as well).