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Cheapest is Not Always Best

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Good mortgage brokers strive to get the best deal for their clients.  But best is not always the cheapest.

Our Christmas and New Year were overshadowed by a loan we were arranging where the original bank really put the borrower through the wringer – so much so that we ended up going to another lender.

The first bank we approached to arrange the client’s purchase offered a really competitive 3.65 per cent interest rate and a truckload of frequent flyer points.  But they asked so many unreasonable questions about the client’s finances that he was at risk of not being able to settle on his property purchase.

With three weeks to go, the client and had a conversation with the Chan & Naylor Finance staff and decided that we needed a plan B; the last thing he wanted was to be paying penalties because a lender had stuffed him around.  So, we decided to approach an investment bank which was offering 3.75 per cent.

The loan was approved within 24 hours.  The client signed the loan documents via Docusign (while he was on holiday). His offset account was set up straight away – it proved so painless that he was ready to settle two weeks in advance!

Sure he has not got the cheapest rate – but he has a damn good rate.  But, given that he was worried he would lose the property, he is now very happy with a lender that prides itself on the quality of service it offers.

When it comes to finance, cheapest is great. But cheapest may not be best.

For a no obligations consultation on your finance needs, please contact Chan & Naylor Finance here.

Disclaimer

Aside from finance assistance, have a look at our other accounting and advisory services that we do to help you achieve greater financial success.

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Chan & Naylor Group have national offices in North Sydney, South West Sydney, Sydney, Pymble and Parramatta in New South Wales, Melbourne, Moonee Ponds and Hawthorn in Victoria, Brisbane and Capalaba in Queensland, and East Perth in Western Australia. Contact us today.

This article first appeared on Origin Finance.

One response to “Cheapest is Not Always Best”

  1. leon says:

    What really are “unreasonable questions”?
    Banks and credit agency already know more then they need, so am not sure what is the problem….

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