I support Mortgage Brokers not Banks!

How the findings from the royal commission regarding Broker commissions may affect you;

As it stands; finance brokers currently provide a service where they will assist you “the customer” to find the best lender at the most comparable rate. They typically have access to multiple lenders.

A broker will often place your loan at your own bank at a lower rate than you could negotiate dealing direct with your own bank.

You do not pay the broker, as they currently are paid a fee from the banks/lenders themselves. So this service currently cost the customer nil.

The changes; potential reforms to broker commission are currently being discussed which could result in a blanket ban on commissions being paid by the banks to the broker (upfront and trail) and the introduction of a customer fee-for-service of thousands of dollars to be charged to the customer by the broker. So essentially the customer replaces the bank in paying the fee.

And it gets worse; an alternative proposal is that the customer must pay a fee to deal directly with a bank branch to arrange a home loan.

Taking choice away from customers by ending competition in the home lending market would likely result in:

Increased fees and interest rates for customers – as banks seek to restore their declining interest margins and increase profit without intense competition to keep prices down
Diminishing availability of credit – especially for customers in regional and rural Australia, where few branches remain, and for lower income customers with more complex credit needs such as first home buyers
The end of trade for up to 17,000 small businesses, and the resultant loss of up to 27,000 FTE jobs in Australia

Mortgage brokers are critical to competition in the home lending market in Australia.

If enacted, these changes could make the mortgage broker channel unsustainable, forcing customers back to the big banks, and cutting customer access to smaller lenders and credit. This could result in customer paying higher interest rates and fees.

Show your support by contacting your local Federal MP today.

Kind Regards

John Kemsley
Managing Director
Platinum Realty Group

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So, you’ve decided to sell!

by platinumrealtygroupsite In Uncategorized

06 February 2019

So, you’ve decided it’s time to sell. Here are some important things to consider before you come to market.

Most common options of how to sell; Private Treaty is the most common way to sell a home in Western Australia. This is where you advertise the property at an asking price and then negotiate with the buyer through your real estate agent. When an agreement on price and conditions is reached, the sale proceeds to settlement.

Auctions; make up a small percentage of property sales in WA when compared to the eastern states. Unlike a purchase by Private Treaty, multiple bidders are able to see the competing buyer’s bids at the auction. The auctioneer is ONLY able to sell the property at the fall of the hammer if a bid is at or beyond the reserve price.

Marketing; The next decision to be made is how to promote your property. Here you’ll need guidance from your agent as to what marketing plan would most benefit you to secure the best outcome. A solid marketing plan is essential to ensure all active buyers get a chance at seeing your property so as to enhance competition between buyers.

It’s essential your campaign includes; Professional photography/video, a strong online presents, signboards, buyer databases, electronic buyer profile matching and social media. Home opens will allow buyers the freedom to view the property.

Picking an agent; In selecting your agent its essential that they have local knowledge, a positive attitude and provide a thorough and costed marketing campaign using the very best mediums to showcase your property and its features. Ask them why their plan is the best strategy to ensure your property sells for the highest possible price in the shortest period of time.

Sold; Once your agent has negotiated an offer acceptable to you, you can now sign off in acceptance. Happy days!! you’ll then nominate a settlement agent to act for you through the settlement process.

Settlement: On the day of settlement you usually meet with your agent to hand over keys. Your settlement agent will ensure a smooth transfer of land and funds. It is a busy time but remember to update all your insurance policies.

All the best 🙂

Kind Regards

John Kemsley
Managing Director
Platinum Realty Group

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