Bank Vs Finance Broker – What difference will this have on my home loan?

shutterstock_129678857When you take out a home loan, you have the option to deal directly with the bank or deal with a mortgage broker who will connect you with the bank. The end game is the same, you will end up with a home loan, however their processes to achieving this and how right that home loan may be for you will differ.

We have summarised a few obvious differences you need to know between going directly to the bank for your home loan or dealing with a mortgage broker.

1. More Choice

A Finance Broker has access to a range of lenders, this means they can review your requirements against hundreds of products in the market with their specialised computer programs. Then make recommendations to you based on their research.

Your bank can only ever show you their products, how do you know it is the mot suitable one for you if you’re only getting a quote form one lender?

2. Save you Money

When was the last time your bank told you someone else had a more suitable deal? Never…that’s right because banks won’t tell you what someone else has to offer, especially if it is a more suitable deal.

A Finance Broker has access to a range of lenders, some you may not have heard of and they will find you and recommend a loan that is most suitable for your needs and requirements. This often means saving money from your existing bank.

3. Circle of Influence

You may hear people talk about their centre of influence and having the right people surrounding them who help them achieve their goals through life. A good Finance Broker should be part of your Circle of Influence who can advise you on a range of credit matters when they arise.

Typically you deal with different people in banks for different products, for example you deal with a different person for a home loan than you would a personal loan or business loan. If you aren’t dealing with the same person how much do they know your situation and circumstances?

4. Convenience

A Finance Broker will be available outside of business hours and weekends to discuss matters when it suits you, whereas most bank you have to make appointments during office hours.

 

How to Choose the Option That’s Best for You

Deciding on where to go and who to speak to for your home loan is a personal choice, what may work for you may not work for another. If you like to have your options on the table to assist you in making the right decision, using a mortgage broker could be the right choice for you. Sometimes we ask;

 

It’s not why would you use a Finance Broker

but

WHY WOULDN’T YOU

Written by Steve Milligan.