29/09/2016
Some ads have been appearing on TV about "loans some brokers won't even tell you about".
Does this sound like it's because they're so good, or does it sound like it's because theyre so bad?
Here's why you need to do some serious homework and research before you sign on the dotted line with a lender you never knew existed:
It's worthy of note that financial institutions represented by brokers, through their aggregation groups, have been through very strict scrutiny. Our aggregation management teams examine these institutions from every perceivable angle, through a magnifying lens, and with a fine tooth comb, to guard against any possibility of these lenders failing at any time.
Now you may think, "so what if they do fail, I have my money, so how's that a problem for me?"
This would seem, on the surface, to be a perfectly reasonable question.
So let me tell you what could happen, because it's happened before!
Let's say you find one of these lenders that "some brokers won't even tell you about", and the interest rate is lower than any you can get anywhere else. What if later on this lender goes belly up because it failed to manage its overheads effectively, or its lending policy settings were unsustainable, or it was undercapitalised, or for various other reasons?
Well, let me give you an example of what actually happened a few short years ago.
Lender A was a well known household brand with a large loan book, but when the GFC came along it became unviable and administrators were called in. A plan was devised to deal with the situation. The very well known "brand name" and their premium location "branches" were sold to a high visibility and well respected banking group. So far, that sounds okay, right?
W R O N G !
Only the name and the branches were sold. The actual loans - "the loan book" was retained by the administrators, and interest rates were incrementally raised over the following months, until they became amongst the highest by far.
Now, some people were fortunate enough to be in a position to be able to refinance with other lenders, but many, for a range of reasons, were unable to refinance, and some got into extreme and severe financial difficulties. Some even had to go through the embarrassment of financial counsellors and set up special arrangements.
By going through a broker, due to the careful scrutinisation of our aggregation groups, you can be more than reasonably confident you will never face this worrying situation, and still get
A G R E A T R AT E !
