Is it better to use a mortgage broker or bank?

Deciding whether to use a mortgage broker or a bank depends on your individual needs, preferences, and financial situation. Using a mortgage broker offers several benefits that can make the home loan process easier and potentially save you time and money: Access to Multiple Lenders: Mortgage brokers have access to a wide network of lenders, including banks, credit unions, and non-bank lenders. This gives you access to a broader range of loan products and interest rates compared to what you might find by approaching individual lenders directly. Personalized Advice: Mortgage brokers are experts in the mortgage market and can provide personalized advice tailored to your financial situation and goals. They can help you understand your borrowing capacity, explain different loan options, and recommend the most suitable loan products for your needs. Negotiation Power: Mortgage brokers often have strong relationships with lenders and can negotiate on your behalf to secure competitive interest rates and favorable loan terms. They may also be able to negotiate waivers on certain fees, potentially saving you money over the life of your loan. Convenience: Working with a mortgage broker can save you time and effort by handling much of the loan application process on your behalf. They can help you gather the necessary documentation, complete paperwork, and liaise with lenders throughout the application and settlement process. Streamlined Process: Mortgage brokers can streamline the loan application process by guiding you through each step and coordinating with lenders, real estate agents, and other parties involved in the transaction. This can help ensure a smoother and more efficient process from start to finish. Save Money: By comparing loan offers from multiple lenders, mortgage brokers can help you find the most competitive interest rates and loan terms available in the market. This can potentially save you money on interest payments over the life of your loan and reduce upfront costs such as application fees. Expertise and Guidance: Mortgage brokers are knowledgeable about the complexities of the mortgage market and can provide valuable guidance and insights to help you make informed decisions. Whether you're a first-time homebuyer or an experienced investor, a mortgage broker can offer expertise and support throughout the home loan process. Overall, using a mortgage broker can provide convenience, access to a wider range of loan options, and personalized advice to help you navigate the complexities of the home loan process and secure the best possible loan terms for your individual needs.

A broker will (or should) give you ongoing service (Bi-annual discount pricing requests to your lender etc) and have many more options available. A bank only has one product offering and they will not pro-actively do anything on your behalf because if you forget to look at your loan they will continue to earn more interest. At the end of the day, you have a choice to where you would like to receive your advice.

Mortgage Brokers currently write around 70% of all new business written in Australia. Mortgage Brokers have access to multiple lenders (over 30) including the 4 big banks and their other Brands i.e. St George, uBank, BankWest. If you go to a Mortage Broker they will ensure you get the product from the lender that best suits your needs. If you go directly to a Bank they can only sell you the products available at their Bank. So if you want to ensure you talk to someone that has multiple options for multiple lenders best to see a Mortgage Broker. It should also be highlighted that Mortgage Brokers have access to the same rates and products that are available directly through the Bank.

It's better to use a mortgage broker. If you go direct to the bank they only have one policy and limited products. If you go through a mortgage broker they have access to a whole panel of banks and lenders and will find a bank/lender and policy that suits your circumstances best and increases your borrowing capacity