Why use a mortgage broker instead of a bank?

A mortgage broker is a licensed professional who acts as an intermediary between borrowers and lenders. Their primary role is to help individuals find and secure the most suitable home loan tailored to their financial situation and goals.

The key differences between mortgage brokers and banks

They offer a wider range of options

Mortgage brokers have access to a vast network of lenders, including major banks, credit unions and non-bank lenders. This means they can compare a wide variety of loan products to find the best fit for the borrower. In contrast, banks and major lenders can only offer their own products, limiting the borrower’s choices.

Personalised service

Mortgage brokers work directly with the borrower and provide personalised advice based on a thorough assessment of the client’s financial status, needs, and preferences. They guide borrowers through the entire loan process, from application to settlement. Banks, on the other hand, may offer less personalised service due to their larger customer base, remote customer service teams and more rigid product offerings.

Potential for a better deal

Because mortgage brokers can compare multiple loan products, they may secure better interest rates and terms for the borrower. Banks and major lenders might not have the same flexibility to offer competitive rates or tailor their products to individual needs.

Cost-effective

Mortgage brokers are typically paid by the lender, meaning their services are often free for the borrower. This can make using a broker a cost-effective option compared to directly approaching a bank.

Choosing a mortgage broker can save borrowers time and effort while potentially securing more favourable loan terms and interest rates than going directly to a bank or major lender.

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