Why Choose A Mortgage Broker Over A Bank?

*Advice given in this article is general only and may not apply to you. Always speak with a financial expert if you have questions about your circumstances.

If you’ve made the big decision to get a mortgage, getting the right loan for you is paramount to your future. With dozens of loan options available from many different sources, how do you know if you’re getting a good deal?

What does a mortgage broker actually do?


A mortgage broker is a great resource if you’re new to getting a loan and are unsure of your potential options. It is the job of a broker to assist you every step of the process to help you find, understand, and secure a loan. Their job is simply to be your go-to guide. They do the heavy lifting of the loan search, and you just provide the documents.

Can’t I just get a loan from the bank?

You might be thinking that you should just go to a bank for your loan, and whilst this isn’t unusual, it’s not the only option available to you. Banks tend to offer special promotions for current customers who are already in possession of a credit card or a long term savings account. But, your bank isn’t the only lender available, and they don’t always have the most favourable interest rates. 

Your wallet may find it more worthwhile employing a mortgage broker to help you find alternative options. Mortgage brokers can often get you better loans than what your bank offers due to their range of lenders, industry knowledge and social network.

Why should you choose a mortgage broker?

1. More variety in lender choice and loan rates

Mortgage brokers don’t look at every loan available on the market, but they do look at a lot. These also include smaller lenders who can’t be found easily through Google, or lenders who have partnered with developers.

Your bank will only tell you of the loan options that they have available – and this is not necessarily a bad thing (especially if you were interested in a bonus credit card with lower rates, or whatever promotion they have going on whilst you’re organising a loan) but this does mean that you are limited in your choices.

Because of the nature of lenders partnering with select brokers, it means that different mortgage brokers will be able to offer you different loans. Do your due diligence and ask several mortgage brokers for options before choosing.

2. Expertise and advice at your fingertips

Choosing the wrong loan can be an expensive mistake, so it’s important to get it right. Rather than trusting your bank to have your best interests at heart, engaging in the services of a mortgage broker results in an unbiased variety of loan options that may suit you better. And if it turns out the bank is the best lender for you, then no harm done! You can rest easy knowing that a professional determined that for you. Plus, your mortgage broker may have insider knowledge for you, including how to improve your application or even your credit score.

3. Save yourself time

You might be considering looking for a loan yourself, and whilst it’s always good to do your own research, it’s also beneficial to have a professional on your side. There’s no point in combing through extensive websites and reading the fine print when mortgage brokers do that for thousands of other clients every day. 

And, if you’re looking for a very specific loan to meet your requirements, your mortgage broker will work hard to find you a loan that suits your unique needs. Some lenders work exclusively with brokers and cannot be engaged otherwise, even if you reach out. Banks will only direct you to what they have available, which is not what you want long term. A loan done right the first time means you don’t have to worry about it later, saving you time and stress!

Your mortgage broker can also help you prepare your documents and fill your applications on your behalf with your permission, letting you sit back and relax whilst they hustle for you.

4. Save yourself money

A loan is a big commitment, and if you choose the wrong one, how much will you be wasting on interest that could have gone into your pocket instead? 

Hiring a professional mortgage broker is the long-term money-saving offer, especially when they charge so little for their services – in fact, many don’t charge at all, and instead reap commission from the lender instead. Make sure your mortgage broker discusses their fee structure with you up front so you have a clear idea of what to expect from them.

What's the final take away?

As when making any type of big commitment, it’s important to think about what you really want and need from your loan. Whether you choose a broker or a bank depends entirely on your circumstances. If you’re in the market for a loan, shop around yourself before engaging with a professional so you know what to expect. 

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