Using a Bank Versus a Mortgage Broker

More and more people are beginning to see the benefit of using a Mortgage Broker to organise their finance rather than heading straight to their Bank. But what’s the difference and is there really any benefit to engaging a Broker to act on your behalf?

In this article I outline 4 reasons why you should use a Broker and the advantages of this.

Product Choice

As a customer of CBA for example, if you visit a branch how many products can your bank offer you? One, maybe two but usually no more than three. A bank will always tell you that their offering is the most suited for you regardless of your circumstances without any consideration of what else is available in the market. A little biased I think?

A Broker on the other has no bias as to which lender to use (a Broker can recommend lenders on their panel which usually contains 25-30 lending options) and can show you multiple products from a number of different lenders in one meeting. You can work together to choose the top options in terms of product features, benefits, interest rate and fees.

Looking out for your interests

When you come to see a mortgage broker for finance the conversation doesn’t usually begin with going through loan products and interest rates. Instead we need to get a better understanding of your overall financial position, current and future goals to get an understanding of you, the client, before making any product recommendations. Choosing a loan can be hard and something that sticks with you for many years so you need to ensure the person helping you has all of your interests in mind rather than just making a sale or moving you on so they can deal with the next customer.

Service and Accessibility

Service is a key part of the home loan and property buying process. For many people buying a home or investment property is not an easy task and not something you do every day. A top level of service and accessibility to your lender is critical as you will have questions, concerns and deadlines which need to be met. A Mortgage Broker can be a lot more accessible then bank lenders as they are often mobile and able to work around your schedule including evening appointments. Phone calls, emails and texts need to be responded to promptly and this can’t always be done by those who only work 9 - 5.

By working with you to achieve your goals a Mortgage Broker seeks to build a long term relationship with you instead of having a once off transaction.

Assistance through life stages

Where you are in 5 years time can be completely different to today so over time your needs and finance requirements are going to change. You may start off as a first home buyer, need to finance a new car, holiday, buy an investment property, refinance to access equity to renovate or even upsize once you start a family. Things change over time and you want to have a someone on your side to work with you and help you through these stages. A broker can offer this to you as over time you form an understanding of each other and a lot of trust. Its always a lot easier going back to someone who knows you rather then starting fresh and having to explain your story over and over again.

If having more choice, flexibility and access to someone who you know is working towards helping you achieve your goals is something you are looking for, contact a broker. The service generally does not cost you and you can often gain the benefit of the brokers knowledge and industry experience to help get your finance approved.

Contact Nathan Sitas to learn more and find out your options today to achieve your finance goals.