When looking at applying for finance, it is important to understand the difference between talking to a Bank vs talking to a Mortgage Broker. A bank typically only operates within their specific set of available products that they have available, whereas a Mortgage Broker will generally have a panel of Lenders and Banks that they can access – sometimes over 30 different lenders. Furthermore, Mortgage Brokers sometimes receive “brokers only” product offers and interest rates which can be cheaper than what is on offer in the banks.
That being said, there is no guarantee that a Mortgage Broker will be able to offer you a better rate than if you just walk into your own personal bank. Furthermore, as in every profession there are “good” and “bad” Mortgage Brokers. Mortgage Brokers typically are paid a fee (commission) by the banks for writing the loan. As some banks pay more commissions than others, there can be a tendency for some Brokers to favour the higher commission lenders, even to the detriment of the client. This is by no means the majority of the population, but it is something to keep in mind.
Just like when you are selecting a developer, builder or anything else to do with buying a home, it is important to do your research, look at reviews and ask plenty of questions. A “good” broker will be happy to give you the time to discuss their recommendations and answer any questions you have. Overall, my preference would be to deal with a Mortgage Broker, however if you feel like your personal bank is the right choice for you then it may just be the right choice.
Feel free to contact us for advice or recommended mortgage brokers.
*Information above is the opinion of the Author and does not necessarily reflect the opinion of Equity Build Homes as a company. All information is general advice/opinion. Equity Build Homes recommends doing your own due diligence regarding products and services from Banks and Mortgage Brokers.