Ask Alan Home Loans Brisbane CBD
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 Dear Santa,

I’ve been good all year,

Most of the time,

Once in a while,

Never mind,

I’ll buy my own stuff…

All banks offer spectacular deals to new people.

Then under the cloak of darkness (called “out of cycle” rate rises) – they claw margin back.

Why do they do that? To be able to continue to offer the next round of spectacular deals to new people.

Surely there has to be something wrong with this… Well the “umpire” has called “no foul”.  

Rod Sims (the umpire) – head of the ACCC (Australian Consumer and Competition Commission) was asked to look into this practice and has said (yesterday, 16th Dec) “It is neither illegal nor unethical”.

He does continue – “… if you stay with one lender … over time … and you’re not enquiring about better rates …” then silly you.

What he is saying is;

·      A business can charge whatever it likes to be profitable – as long as it is not illegal or unethical.

·      It is the responsibility of the consumer not to be naïve.

Banks do have to legitimately compete with a raft of new smaller lenders (who do not have back book issues or costs). Their overheads are low, and all clients are new.

So how do we decide (of the banks) who is Naughty and who is Nice.

Banks behave as I have described to survive and compete – that’s what they do.

The Naughty ones (in my opinion), when approached by me, (about your rate which has wandered upwards) dig their heels in and refuse to budge.

The Nice ones understand the “deal” they have with me (on your behalf). The Nice ones understand that if they want “Alan’s new clients” they have to play Nicely with “Alan’s old clients”.

I refuse to recommend any banks on my Naughty list – they can complain all they like – but not all banks are equal – and those in the Naughty chair will not get my business.

This is one of the least understood aspects of WHY you would use a broker.

You can look high and low on any number of search engines – you will NEVER find the Naughty and Nice list.

Alan has that list based on many years of experience. (Banks do come and go from this list – I continually update it).

Having a broker is a relationship.

It is not about just “getting the loan”.

When I am paid for the work I do – I am paid a portion upfront for the work I have done. I am paid the rest for looking after that loan over time.

This is the key to what I do.

EVERY 6 months I check EVERY loan against the market – and if it is out from where it should be, I seek a reprice on your behalf.

I look after your money as carefully as I would my own.

The chair of the ACCC has firmly said – he will NOT stop banks doing what they do. It is up to YOU to monitor your loan.

But … you are busy, and how would you know when your rate has wandered, and how would you know how much of a reduction to ask for.

This ABOVE all is how a Broker acts in your Best Interests – initially helping you choose the right loan for you and placing it with a bank on the NICE list.

This is what Ask Alan stands for – This is what I do.

As always if you would like advice specific to your own personal circumstances, please call or email anytime, it’s what I’m here for.

Just Ask Alan – Your online mortgage broker.