When it comes to a mortgage you have two choices: a mortgage broker or a bank. Both have pros and cons and it will depend on your individual situation and needs. ๐ค
In this post weโll break down the differences between mortgage brokers and banks and help you decide which way is best for you. Letโs get into it! ๐
Mortgage Brokers ๐
1. Personal Service ๐ค
One of the biggest benefits of a mortgage broker is the personal service they offer. Brokers are independent experts who work for you not the bank. They take the time to understand your individual situation, goals and preferences and then shop around to find the best loan options for you. ๐๏ธ๐ฐ
With a broker you have a dedicated professional on your side who can answer your questions, guide you and support you throughout the whole mortgage process. Theyโll do the paperwork, communicate with lenders for you and make sure everything runs smoothly from start to finish. ๐๐
2. Access to multiple lenders ๐
Another benefit of a mortgage broker is their access to multiple lenders. Banks can only offer you their own products, brokers work with multiple banks and lenders to find the best rates and deals. ๐ฆ๐ฆ๐ฆ
This means you have more choices and a better chance of finding a loan that suits your individual needs and budget. Whether youโre looking for a low rate, flexible repayments or a specific loan feature a broker can find it for you. ๐๐
3. Cost Savings ๐ธ
Contrary to what most people think using a mortgage broker doesnโt mean youโll pay more in fees or commissions. In fact many brokers can get better rates and deals than you could on your own because of their industry knowledge and negotiating skills. ๐ช๐
Plus brokers are required by law to disclose any commissions they receive from lenders so you can be sure theyโre working for you. And in many cases the lender pays the brokerโs commission not you. ๐
4. Convenience and time saving โฐ
Letโs face it โ finding a mortgage can be time consuming and stressful. There are so many lenders and products to compare, paperwork to fill out and deadlines to meet. Itโs enough to make your head spin! ๐๐ต
But with a mortgage broker you can sit back and let them do the legwork for you. Theyโll compare lenders and products, gather your documents and submit your application for you. This can save you hours of research and hassle and get you your loan faster and with less stress. ๐๐
Banks ๐ฆ
While mortgage brokers offer many benefits there are also some advantages of going direct to a bank. Here are a few things to consider:
1. Direct relationship with the lender ๐ค
When you go direct to a bank you have a direct relationship with your lender. This can be appealing if you like face to face interaction or if you already have a long history with a particular bank. ๐
Some people prefer to deal direct with their lender and know exactly who is handling their loan. And if you have a good history with your bank you may be able to negotiate a better deal or get a faster approval. ๐ค๐
2. Faster process ๐๏ธ
If you have a simple financial situation and know exactly which loan product you want going direct to a bank can sometimes be quicker and easier than a broker. ๐๏ธ๐จ
Banks have their own loan processing teams and can approve your application faster if you meet their criteria. And if youโre already a customer of the bank they may have some of your information on file which can speed up the process. โฐ๐
3. Loyalty discounts ๐
Some banks offer loyalty discounts or special deals to existing customers who take out a mortgage with them. For example you may get a lower interest rate, waived fees or other perks if you have a long history with the bank. ๐ฐ๐
But donโt just take their word for it, shop around and compare these deals with what you could get through a broker. Just because youโre loyal to a particular bank doesnโt mean theyโll give you the best deal overall. ๐ต๏ธโโ๏ธ
Mortgage Broker Myths ๐ โโ๏ธ
Despite the many benefits of using a mortgage broker there are still some common myths that may stop some people from using one. Letโs debunk them:
1. Higher costs ๐ธ
Some people think that using a mortgage broker will cost them more in fees and commissions than going direct to a bank. But as we mentioned earlier this isnโt necessarily true. ๐ โโ๏ธ
In many cases the lender pays the brokerโs commission not you. And brokers can often get better rates and deals than you could get yourself which can save you money in the long run. ๐ฐ๐
2. No direct access to lenders ๐ซ
Another myth is that using a broker means you wonโt have direct access to lenders or control over your loan. But this just isnโt true. ๐ โโ๏ธ
Your broker works for you and acts as your advocate with lenders. They keep you informed throughout the process and get your approval before submitting any applications or making any decisions on your behalf. Youโre always in control and can contact your lender directly if needed. ๐๐
You decide ๐ค
So, mortgage broker or bank? It depends on you. Here are some things to consider:
Your situation:* If you have a simple financial situation and know exactly which loan product you want going direct to a bank may be the easiest option. But if you have a more complicated situation or need help working out your options a broker may be the way to go. ๐ค๐ก
Level of support:* If you want personal service and expert guidance throughout the mortgage process a broker can provide that. But if you prefer a hands off approach or have a strong relationship with your bank going direct may be the way to go. ๐ค๐ฆ
Access to many products:* If you want to compare many loan products and lenders to find the best deal a broker can help you do that. But if youโre happy with your bankโs products and rates going direct may be easier. ๐๏ธ๐ฐ
Time and effort:* If you want to save time and effort on researching and applying for loans a broker can do most of that for you. But if you enjoy the process or want more control going through a bank may be your preference. โฐ๐ฆ
At the end of the day itโs all about whatโs best for you and your situation. Whether you choose to use a mortgage broker or go direct to a bank the key is to research, ask questions and make an informed decision. ๐ค๐ก
Mortgageโs a big deal so get it right. Take your time, weigh up your options and donโt be afraid to ask for advice from people you trust. With the right approach and support you can find the right loan to help you get into your dream home. ๐ ๐ญ