Nowadays more people are using a mortgage broker instead of going directly to a bank! But what are the differences?
It ultimately comes down to service. A bank is bound by the products and features available through their institution while a broker guides you through various mortgage options and helps you compare rates, fees, and features from various lenders. So basically this means, the banks can only present you with their own products whereas brokers have access to hundreds of products from many lenders, therefore have greater reach in terms of finding the most appropriate solution for your particular needs and circumstances.
What are the benefits of using a mortgage broker?
When using a mortgage broker:
(1) You are receiving financial assistance from someone who has a broad knowledge of products and features on offer across a large portion of the market,
(2) A mortgage broker has the ability to compare rates and product offerings from a vast variety of lenders, and most importantly,
(3) The mortgage broker works for you and their service is usually free.
Mortgage broker vs a bank
The pros and cons of using a mortgage broker (finder.com.au):
- Brokers offer choice to a wide range of lenders, and a good broker is well-practiced in finding the best deals. They will know the nuances of lenders’ credit policies and should be able to direct you to lenders best suited to your circumstances.
- When it comes to seeking a mortgage via a bank, the broker can also advocate on your behalf, increasing your chances of success with the process.
- Mortgage applications can confuse people. A broker helps you get your application paperwork together with a minimum of confusion.
- Due to the sheer number of brokers, it can be difficult to determine which brokers are highly experienced, and which brokers are new.
The pros and cons of going directly to a bank (finder.com.au):
- Going through a bank loan officer can allow you to access a direct line to the best deals at the bank or lender you choose to work with. Bank loan officers are also extensively experienced in working with the lender, their policies and their loans.
- If you’re already a customer, they can often structure a loan to work with other bank-provided products you have already.
- Another advantage of going through a bank loan officer is dealing directly with your lender. This means any questions you have or any additional information the lender needs can be addressed without taking the time to go through an intermediary.
- A bank loan officer has access only to the loans offered by the bank or lender through which they are employed. This can seriously restrict the options available to those who are not a direct customer of the lender already.
- If you’re self-employed or have bad credit a lot of banks are unlikely to approve your application. A broker will help you find a lender who can.
Let us help you!
With interest rates at an all-time low and bonus offerings from many lenders, now is a great time to take a look at your current loan(s). Even with the possibility of being able to reduce their repayments significantly and increase their cash flow, many people put off reviewing their loans as it can be a time consuming task.
At Option Home Loans, we consider every aspect of your situation and tailor a solution which best suits your current needs and future objectives. We have the ability to compare products from a range of over 30 lenders which means in many cases, we are able to provide you with more than one option. We will do all the legwork for you to make the process as simple and stress free as possible.
There is NO fee for our service.
We go above and beyond for each and every one of our clients because, at Option we are committed to providing you with professional and friendly service as well as the appropriate tools to reduce your mortgage debt as quickly as possible. Our goal is to help you secure your financial future!
How does it work?
Contact us or book an appointment using the link below and one of our experienced lending specialists will be in touch.
Make your life-changing decision and contact us today!
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References:
https://www.finder.com.au/mortgage-broker-vs-banks-home-loans