Mortgage Broker or Direct Deal, what is the best option for you?
Tue Sep 03 00:00:00 AEST 2013
If you’re thinking of buying a first home or investment property, you might be wondering whether you should go direct to your bank for a mortgage, or seek out the advice of a mortgage broker. This will depend on what you are comfortable with, and what kind of advice you need.
The main difference between going direct to a bank or seeing a mortgage broker to arrange your home loan is that banks are only able to offer you their own loan products. While there may be a good variety of loan types available if you are going to a major lender, you still might find that shopping around outside of your usual bank is useful.
This is where a mortgage broker comes in. Brokers usually work with dozens of different lenders, big and small, and they are not obliged to offer any one institution’s products – they simply work out the best product for you based on your financial situation and what is suitable for you, from the many loans available to them through their network.
Borrowers that are less attractive to major banks – for instance, self-employed people, or those with a lower deposit or shaky credit history, may want to use a mortgage broker especially if they have been refused or penalised by higher mortgage repayments or interest rates by going directly to a bank The variety of lenders that mortgage brokers work with, their close relationships with lenders and their knowledge of the market means that they can often help you to work out what is suitable for you.
Of course, not all advice is equal so it pays to seek out a trusted mortgage broker who comes recommended from friends or family. But finding a good mortgage broker can save you serious time and money when you’re applying for a home loan – not only through the savings you may be able to get on your mortgage repayments and interest rates, but through having an advocate who will talk you through the process and chase up your lender to make sure everything goes smoothly. Mortgage brokers receive commissions on every loan they write, so it is as important to them as to you that your home loan is approved, and you can be sure that a good mortgage broker will assist you every step of the way.
If you would like to find out more about the loan options available to you through Choice Home Loans’ broker network, you can make an appointment online to speak to one of our friendly and experienced mortgage brokers today.
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