In Australia, the usual course of action for aspiring home buyers is to go with a bank instead of a mortgage broker. This is because most people believe banks are a much safer option with their established brand names and reputations. However, a mortgage broker can secure you a much better deal than going directly with a bank. Here’s why, in most cases, a mortgage broker is better than a bank.
Rates And Products Are More Competitive
You are likely to get a good interest rate from your bank if
a) you have an excellent credit history
b) you’re an existing customer
c) you have a stable income
However, while the rate may be good, it might not be the best and most competitive rate you’re qualified for. Most banks don’t pass on rate cuts to their customers, no matter how loyal the latter might be. Also, they are not open to discussing such matters with them. More often than not, the rates they will give to you are final, and you can’t negotiate.
However, with a broker or a Sydney investment specialist, you can save more money in the long run because you’ll be able to research which lender provides the best interest rate. In addition, you’ll also be able to explore other options since you’ve got more financial products to choose from. A broker usually has a panel of lenders that offer different products that may be more suitable for your financial situation.
Mortgage Brokers Are Lending Experts
Sure, bank staff may dress smartly and project themselves in a manner that suggests they know everything. However, this isn’t always the case. Some of them don’t understand complex situations and how to properly evaluate them. It might take you a long time for your application to be processed or worse, it might not get through at all.
In contrast, mortgage brokers are experts, especially when it comes to packaging your application. They can identify policy exceptions and even negotiate them with the credit officer assessing your application. With a mortgage broker, your loan application has a bigger chance of getting approved.
Banks Are More Expensive
It is actually more expensive to go to a bank than to obtain the assistance of a mortgage broker. In fact, for most loans, a mortgage broker is free. Otherwise, you’ll still pay less because brokers can negotiate a better deal for you. The only time a broker may ask you to pay some fees upfront is when you’re securing small loans or commercial loans, or if you have bad credit or insufficient proof of income.
If you’re a first home buyer who wants to get the most out of your home loan, you should consider a mortgage broker. Not only will you get more options, but your loan application is more likely to be successful. Contact Atelier Wealth today; your local Sydney Mortgage Broker.
