Is it better to get a mortgage through a broker or a bank?

For property investors, a lot of background work is involved in buying a property that meets their financial goals. When purchasing investment properties, real estate investors can use a mortgage broker or go directly to the bank. If it is not their first property purchase, using the same bank as their other mortgage or business may be convenient. But not always the lowest interest rates. A mortgage broker can go to the market for the most attractive financing that matches your specific circumstances and goals.

Whilst it may seem that direct lending through the banks dominate the market, there are a few considerations before deciding which option is best suited to your next property purchase. Using a mortgage brokers in Brisbane is a growing trend, with more Australians choosing brokers to help them secure their home loans. 

The ‘B’s in the bullpen – Broker vs Banker 

Mortgage Broker

A mortgage broker is an independent mortgage professional who acts as an intermediary between individuals seeking to borrow money (in the form of loans to purchase a real estate property) and a lender that offers such borrowing facilities secured with real estate. 

To find competitive options, brokers go to market and compare different loan options from various lenders. A Loan broker in Brisbane, Australia is generally paid a fee/commission by the lender after the loan is closed.

Direct Bank Loan

A banker works on behalf of a bank or a financial institution, and there is usually a specialist in the brand who deals with the provision of mortgage loans. They assist in choosing among the banks’ multiple mortgage loan options.

Which option to choose?

Prospective property owners can sway either way when they want to finance a mortgage loan, but is there a right or wrong option? Practically speaking, if you wish to choose a mortgage broker or go to a banker directly is a matter of personal preference. 

Services Offered

A mortgage broker in Australia lays out various mortgage options and assists you in comparing rates, fees, and features. They guide the entire application process once they have connected you with a bank or non-bank mortgage lender. Think of it as a ‘one-stop shop’.

A banker will explain their mortgage options and help you choose the one that fits your needs. A lending specialist will walk you through the application process, but most of the work ultimately falls on you.

Mortgage Options

Bankers will provide you with their own set of mortgages. More significant financiers can meet almost any loan requirement, while smaller lenders will have fewer options to offer. If a bank doesn’t fit your needs, you have to settle with what they offer or move on to another banker. 

Brokers generally have access to numerous loans from a panel of 30-40 lenders. They provide access to a compartmentalised plate of lenders. Choosing the right financing option becomes more accessible and quicker this way.

Benefits

A broker can provide expert help to find financing options from a large panel of lenders. They go the extra mile to compare rates from a panel of lenders to maximise your benefit against the cost.

Bankers also have their own lending specialists who can provide you with advice similar to brokers, but their options are limited. Sometimes bankers also provide upselling or cross-selling services with your choice of financial product. Having your various bank accounts and loans with one institution can be convenient.

Assistance

A good mortgage broker will act as an advisor and a mentor and help you to find the requirements amenable to your conditions, in person or virtually. They are one call away to solve your queries to make an informed decision. A mortgage banker is available during bank hours, and they generally will not be able to provide you with services beyond their power.

The ultimate gain for any prospective borrower would be negotiating a competitive interest rate and suitable loan structure. You may benefit from the guidance of mortgage brokers if you are looking for the best deal. Without studying the entire market daily, it is difficult for an individual to know what goes on within it. If you are confident in your research, there is no harm in directly approaching a banker. However, a professional touch can increase your chances of obtaining the most advantageous option and save you money.

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