Your Bank or a Mortgage Broker?

First home buyers fall into one of two categories:

You have either banked with the same institution since starting work or, you have moved from bank to bank looking for the best fees and interest deals.

Either way, the relationships we once enjoyed with our personal bankers are no more! Banks are businesses looking to capitalise on dividends payable to their investors and no concessions will be offered for the loyalty you may have shown them.

Mortgage brokers on the other hand have no loyalty to any particular bank or financial institution!

Their function is ONLY to secure the best deal they can for you by way of interest rate and possible up-front cash payment. This is a lump sum incentive offered by mainstream banks which can be anything from $1000 and up to approximately $10,000. (Likely subject to conditions and open to change).

Your bank will offer you as little as they feel they can get away with and as a new buyer, it is more than probable that you will not be aware of what you “could” get and “should” ask for. Your mortgage broker’s role is to KNOW what is being offered by each bank and will understand how you align with that bank in-regards to your personal financial situation.

Enlisting the help of a mortgage broker also ensures your documentation is correct when your request for approval is received by a bank/s. The broker will ask you what they need to know and them frame it in the most positive light, prior to laying up your mortgage.

A mortgage broker may be able to give you an early indication as to where they think you might be sitting in-regard to borrowings and what likelihood there is of you securing the loan you seek. If it is an early “highly unlikely” from them, it is not likely to change when the request reaches the bank but they may be able to talk you through other options, if indeed these are a possibility for you.

And the best thing about mortgage brokers? They cost you absolutely nothing!

Brokers are paid by the bank that your loan is approved and secured by. Not a cent should be paid by you so why not engage the services of a good one and for that, we are happy to advise.

Author - Diane Davidson