Let’s talk about the elephant in the room. Mortgage brokers get paid by the banks.
True. But as a borrower it doesn’t cost more to use a mortgage broker over a bank direct. In fact, there are quite a few reasons why you’re better off using a broker.
Before we get into that, let’s remember what a broker does. A broker works to determine the needs of the borrower and then shops among various finance lenders for a loan package that best fits the borrower’s situation.
So how does this help you as a borrower? Why should you use a mortgage broker over a bank? Here are a few key ways.
1. A Finance Broker works for the borrower
Banks work for banks. Finance brokers work for you.
Yes, brokers get paid by the lender, but they get paid by whichever lender you go with. So, it doesn’t make sense for them to get you the wrong deal just to go with a particular lender. Successful finance brokers build careers by getting the right deal for each individual borrower.
2. Multiple lender and loan options
A finance broker has no commitment to any single institution and is free to work with any lender. A broker can compare loans from a bank and other lending institutions – a banker cannot.
Choice is the borrower’s best friend. But comparing and assessing the options can be time consuming and confusing for the inexperienced. Brokers, particularly teams of broking specialists, have intimate knowledge of all the options available to borrowers at any one time.
Having a finance broker find which lender is right for you saves you time. You’ll also be more likely to get a successful finance approval.
3. Genuine & stable personal relationship
At banks you can feel like ‘just a number’. Brokers on the other hand are relationship people. Their business depends on building a relationship with you first and foremost so they can understand the deal that’s right for you.
Brokers can look at your finance needs as an individual, a couple or a family. They’re able to assess your needs across the fiance spectrum, home, business, personal finance and equipment, even vendor financing if you’re running a business and need to offer finance.
4. Save time, money and stress
Brokers make it easy for you because they know banks, bankers, loan products and loan terms. They can sift out what’s going to work for you, and what isn’t. They know where to go, and what you need to provide, to get you the finance you’re looking for. Brokers make it easier for the lenders to say yes.
This means you don’t have to waste time with a lender that hasn’t got the right product for you, or isn’t going to give you a loan in the first place.
When you use a mortgage broker over a bank it’s usually quicker and easier for you to get the right finance for the home you want, the equipment you need, the business you want to buy or the investment you want to make.
5. Ongoing advice
Brokers don’t stop when the deal is done. They want to build long lasting relationships by focusing on understanding and meeting the needs of each individual borrower.
Understanding their clients means they are able to offer ongoing advice and assistance as needs change.
Unless you’re a big enterprise with extensive relationships and a significant loan portfolio with a bank, it’s doubtful that dealing directly with a large lending institution will be better than working with a finance broking professional. It’s a broker’s expertise to get you the right finance every time – their livelihood is reliant on it.