Who to Choose – Mortgage Broker or Bank

Banks and lending agencies are responsible for providing billions of dollars in cash every year to borrowers that are keen to buy properties. Mortgages are some of the most popular types of loans applied for, with tens of thousands of applications submitted in Australia every few years. There are two main ways to apply for a mortgage; the first is by approaching a bank directly and the second is by turning to a mortgage broker for help with the application.

Who should you choose?

On one side of the coin you’ll have a bank – an entity that relies on cash to stay afloat in these turbulent economic times and an enterprise that will want to make sure that they get the maximum possible amount back from their customers.

And then on the other side of the coin you have mortgage brokers – financial specialists that usually work tirelessly to compare the lowest interest rates and the fairest home loan deals on the market on behalf of their clients.

Banks can certainly be quicker to apply to, after all they cut the middle-man out and allow the application to be processed internal ready for a rejection or an approval, but they can also include a whopping variety of fees and charges, not to mention usually being unwilling to negotiate interest rates and telling their customers to like it or lump-it.

Where mortgage brokers differ is in the way in which they can deal with these types of lenders. Some compare a multitude of options proposed by banks, while others might already have an idea of the most reliable lending institutes and could reduce time spent by honing in on their services in specific.

Whatever the option, there’s no denying that for a little bit more time to divert an application through a mortgage brokering agency, a borrower could end up signing up to a deal that boasts much lower rates of interest, shockingly fair repayment terms and negotiated features that could be of benefit, well into the future. And this is something that can typically only be achieved by hiring a mortgage broker.

So, what’s the verdict?

If you don’t mind the stress and anxiety that often goes hand in hand with applying directly to a bank, then by all means these types of lenders may well be the way to go. If you’d prefer to have your application managed by an experienced professional however, especially one that deals with mortgage applications frequently and knows all about the shortcuts and benefits – then a mortgage broker might be more suitable for your application requirements.