Broker vs Bank

financial advice

Why opt for a broker instead of a bank?

The big debate

Thinking of investing in or upsizing a new property? Or maybe you’re amid purchasing your very first home. Whatever the case maybe you are facing a hefty sum of money, so you are likely considering the available mortgage options. If you have always been managing your finances with a bank, you will probably be inclined to approach them for home loan advise also.

Naturally, it would seem like the safest and most convenient option to go directly to the source that’s familiar. But what if we were to tell you that this is not the case? But what’s the point of using a third party you say? Surely that would be more complicated and costly. Well, let us correct this common misconception.

Seasoned property investors would point out that a mortgage broker is better-placed to offer you genuine expert advice and deliver a more valuable loan due to their role as an independent intermediary.

Here are some benefits of using a broker’s services rather than a bank when it comes to securing your mortgage:


More variety – minus the shopping around

Banks offer a limited selection of home loan options as they only have access to their own products. These loans may not necessarily work for you or be the most cost-effective, and you would not even know as you will only be focusing on a small range that has been formulated to meet more general needs.

Mortgage brokers, on the other hand, have access to many different lenders. They are well-equipped with the contacts and knowledge to analyse various rates and packages in the market and pick out the best ones to match your unique circumstances and needs. Non-bank lenders, for example, can be a more affordable and feasible option with their cheaper rates and more relaxed or unconventional lending requirements.

Simply put, you are exposed to a lot more choices and the benefits that come with them while also reducing the time and research needed to refine your list. Thus, a broker can get you loans that are essentially tailored to fit.


No more scrutinising a lender’s credibility

Concerned about a brokers credibility? Just like banks, alternative lenders are required to operate under government laws and regulations. Furthermore, if you engage a broker’s services, the hard work of filtering out trustworthy lenders would have been done for you already.


Easier, quicker and more personalised processes

Besides doing the loan research for you and handling the negotiations, your broker is there to answer all your enquiries. This is especially useful if you are just starting out with mortgage-hunting, unacquainted with the different terms and legal procedures, and need a dependable and impartial source of knowledge. Also, brokers aren’t restricted by the strict protocols that the big banks are, so are more able to tailor and negotiate the best possible mortgage structure for your specific needs.


Real relationship building

As an intermediary, a mortgage broker offers unbiased, professional advice. Discussions are more personable, which in an age where services are becoming increasingly digitised and distant, this only makes brokers more appealing.

The top priority of a broker is to devise a loan that works in your best interests. This means that your broker will take you through the best ways to strategise your mortgage to free up funds and save wherever possible. By gaining a thorough understanding of your financial life and goals, a broker can assess that your loans remain advantageous and relevant to changing market conditions and your circumstances. Hence, once you have decided on a broker and are happy with their services, it usually extends into a lifelong relationship.


No extra cost

There seems to be a misconception that going through a broker for your home loan will cost you extra. This couldn’t be further from the truth. Brokers will be offering the same rates and charges as the banks, however, with access to a far wider variety of options, they are better placed to offer the best possible rates. Furthermore, brokers are obligated by law to disclose all costs and fees involved in setting up the loan, so if in doubt you can compare them yourself. Brokers also offer free obligation consultations, so if you just want to get a foot in the door and be pointed in the right direction with some good advice, then it’s a great place to start regardless.

 

So, if you are considering a broker or could simply use a bit of unbiased, obligation free, expert advice, then give us a call, so you can get back to what really matters, shopping for your new property.