Broker or Bank: Which one is better?

There are many reasons why it pays to use a mortgage broker when shopping for your home loan, and even if you want to use your own bank for your mortgage, you can still use a broker to help process paperwork and manage the application on your behalf, plus there is no direct cost to you.

1. Choice

The biggest advantage of a broker over a bank is choice, when you sit in front of a broker you are sitting in front of 10+ banks and 50+ products versus visiting a banker who has access to only one bank’s products. This is especially important at time like now, when the banks are saying ‘no’ more, and by having more choices you’re likely to get a ‘yes’.

2. Experience

Brokers often own their own businesses and are committed to their clients for the long term, with many years of industry experience and knowledge of all the different banks procedures and products. Banks are big companies; they move their staff around and reward good performers with promotions away from their customers.”

3. Specialisation

If you’re looking for specialised assistance with your loan, it pays to talk to a specialised broker. “For example if you’re starting property investing, look for a broker who specialises in property investing as the can set the right structure in place so you can get the max leverage from your properties  

4. Follow Up

Following up the progress of your loan application is time consuming and frustrating. A good mortgage broker will have a system for chasing you up, keeping you informed and saving you time.

5. Personal Banker

Your mortgage broker is “like the perfect personal banker,” They know what needs to be done, they make sure it happens and because it’s their own business, they’re in for the long haul. Bank staff change often so even when you find a good personal banker they change jobs before you know it.”