Mortgage Broker or Banker?
Deciding which way to go
Mortgage brokers provide a variety of lender and product options. Banks can only provide you with their own product.
Banks are limited to providing their own in-house products. For instance – if you pop into one of the local Big 4 banks they can only offer you their own home loans. They won’t be able to tell you that the lender down the road is providing a better deal! On the flipside, most brokers have access to dozens of different lenders. Take Pass Go Home Loans Noosa for example – we have over 20 lenders currently on our panel. This includes all of the Big 4 lenders as well as the smaller second/third tier lenders and credit unions.
We have hundred of loan products available to our clients. Our strong, ongoing relationship with the lenders on our panel benefits our clients too.
The experienced mortgage brokers have a higher chance of getting your loan approved
A high performing, experienced mortgage broker who has been in the industry for years will have a sound understanding of bank credit policies. They’ll be aware of particular niches that each lender offers. They will also know how to structure and submit complex loan applications. Having said that – it’s important to find an experienced broker as the quality and experience of mortgage brokers can vary greatly.
At the end of the day, your chances of getting your loan approved are likely to be higher when dealing with an experienced mortgage broker rather than relying on one bank who can only provide advice on their own products and base their approval decision on their own set of policies.
Excellent mortgage brokers stick around for the life of the loan
Mortgage brokers want to provide you with an exceptional service – they want their clients to rave about their service to their friends, family and colleagues. This is done by ensuring an outstanding customer service experience is delivered from the beginning and continues throughout the life of the loan.
Take our Pass Go Home loans clients for example, if they need assistance with a loan we’ve set up for them, they can expect a quick response from us. We will continue to be their first point of contact with any loan maintenance they need. We will also periodically review their home loan to ensure they remain in a competitive loan product.
With going direct to the bank, this doesn’t often occur. You will call their helpdesk and deal with whoever answers your call. The banker that initially set-up your home loan may no longer be accessible to you.
This is a hugely important factor when it comes to our property investing clients. They like to know that we’re not focussed on the one transaction with them. We’re here to help with them over the longer term as a part of their investing team.
Mortgage brokers save you time and money
An efficient mortgage broker will take the time to understand your home loan requirements and then prepare a recommendation on which lenders are deemed suitable for your circumstances.
They will then collect your documents (ID, payslips, statements, etc), process your home loan application, submit it and carry out all of the following up on your behalf. They will also be around to help after the loan settles. Not only do you avoid having to deal with banks – most mortgage brokers provide this service free of charge. They get paid a commission from the bank that you obtain your loan with. This commission isn’t built into your home loan repayments.
About the author: Jamie is the owner and founder of Pass Go Home Loans and operates between the Noosa and Canberra offices. If you’d like Jamie to provide you with some credit advice – just complete and return this FORM
This information is not intended to act as financial, investment, legal, accounting or taxation advice – and for that reason should not be relied upon as specific advice for your situation. You should always obtain independent, professional advice prior to making any financial, investment, legal or taxation decisions.