Mortgage Broker v’s Bank. Which is better?
Ever wondered why you should use a mortgage broker instead of a Bank? This is asked by most borrowers everyday.
It is a question that should be asked, as you are probably about to make a big commitment with a home purchase. Whether that be purchasing your first home, buying a new property or you simply want to refinance.
In this post you will learn why choosing a mortgage broker can save you both time and money.
We have seen individuals saving hundreds to thousands on their home loan repayments each month. A recent customer is saving almost $24,000 each year in repayments just getting the best finance option for them.
Did you know that close to 60% of borrowers use a mortgage broker?
So still question if it is worth it to use a mortgage broker?
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Which Bank is easier to get a home loan?
This depends on you and your financial details. Each Bank has their own criteria when looking at your loan. That is the job of the mortgage broker to know which Bank and product suits you best.
What is the difference between a lender and a mortgage broker?
Does the Bank sell competitors’ products? Of course not! Why would they. When you go directly to a Bank, they will look at the best product they sell for your needs. Unlike when using a mortgage broker, who will look at over 30 lenders to see which Bank has the best product for you.
This means we can find the best product for you without affecting your credit rating by applying at multiple lenders. This makes the process:
- Quicker by applying with the lender you fit best
- Saves your credit rating with only one enquiry for credit
- The quicker the new loan is funded the more money you could be saving each month. Did someone say holiday?
Why should you choose a broker over going directly to a Bank?
You might think it is easy to get the cheapest rate in the market. It might be the cheapest you can find, but did you know that lenders provide exclusive deals only through a broker.
This means that a cheap deal may not really be the cheapest, but you won’t know because the lender won’t tell you. Also getting a mortgage isn’t only about a rate. As a broker we look at your entire financial circumstances and look for the best product that meets your needs. This may not be the cheapest on the market but makes better financial sense for your current and future financial goals. Things to consider about a loan:
- Interest rate – also checking the comparison rate (which includes fees)
- Loan fees
- Redraw
- Offset
What if you don’t fit in the lenders box?
This is what a mortgage broker does best.
Lets face it, you might be self-employed, have investments already, have difficult finance structures then you need someone who you can explain your circumstances to a lender. We can talk bank talk to get the deal done. Why because having worked in the banking industry for over 20 years (don’t hold it against us ), we can talk the language of the bank. Understanding how they risk rate customers and look at debt allows us to get your loan reviewed by a real bank employee and not just a computerised box model.
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Also it is good to know that as your mortgage broker, I am always reviewing your current loan to see if there is a better option available today. So don’t be surprised if I call you and say, I have found a better deal!
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Do you think you have got the best finance deal?
It is easy, contact JEM Finance Group on 1300 574 774 and get a Free Finance Health Check, to see if we can save you any money. Liked this article please share:
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Jonathan Streater – Director JEM Finance Group | Finance Broker Sydney
Over 20 years experience in the finance industry. I have extensive knowledge across all lending whether it be personal, business, commercial and equipment. My experience is across all industry sectors.