If you’re looking to secure a home loan, you might be wondering what the difference is between a mortgage broker and a bank, and which is right for you. In this blog, we’ll explain the key differences between mortgage brokers and banks, so that you can assess which is best suited to your needs.
What does a mortgage broker do?
A mortgage broker acts as a “middleman” between hopeful borrowers and various lending institutions. Mortgage brokers work independently to connect you with the right lending solution. Two in three home buyers use a broker, but if this is your first mortgage you may be wondering why that is.
The benefits of using a mortgage broker
There are a multitude of benefits for hopeful homeowners that choose to use a mortgage broker. Some of these include:
- Access to products from a range of lenders
- Mortgage brokers are home loan experts
- Brokers can advise on the best loan to suit your needs
- They can negotiate interest rates with some lenders
- Less work for you
- Brokers work in your best interests
How do I get a mortgage from a bank?
Traditional banks offer a range of financial services, one of which is mortgage lending. Banks create and service their own loans, though it is worth noting that, unlike mortgage brokers, this is not the sole focus of the bank as they have many other functions. Seeking a home loan through your bank can seem like an obvious option since you’re familiar with the brand, but banks cannot provide assurance that they are working in your best interests – which brokers are legally bound to do.
Ultimately choosing between a broker or bank comes down to personal preference, but there are many benefits involved in collaborating with a mortgage broker. If you would like to learn more about these benefits, book an appointment with our team of experts or call 1300 1BORRO.