Many people head straight to the bank when they need financing. This seems logicial, but do you know that if you do this you could be missing out on some huge benefits?
Please see below some of the main differences between a mortgage broker and the bank:
1. Choice of lenders
When you sit in front of a bank, you are only talking to that one bank. When you sit in front of a mortgage broker, you are talking to 10+ banks with over 100 different products. All of these home loans have different rates, fees and features. How do you know you are getting the best deal when you are only talking to one bank? That is where a mortgage broker stands out from a bank manager.
2. Potentially lower interest rates
Seeing as though mortgage brokers have access to many different products, after they assess your situation they know exactly what product is suitable for you. What does this mean? They can choose the right product which pay result in a much lower interest rate then going straight to the one bank and being introduced to a product which may not neccasiry be totally right for you.
On top of this, mortgage brokers usually have access to lower interest rates then a bank manager. Strange I know, but sometimes that is how the banks work...
3. Experience
Mortgage brokers usually own their own business and have been working in that space for many years. As you know, banks are big companies and they move thier staff around. If they have a good worker talking to customers, they are likely going to get a promotion away from talking to customers.
4. Service
Going through the loan process you are sure to get a great level of service from your mortgage broker. Mortgage brokers are like your personal banker, if you need something done you can contact them. You always know who to talk to, because they own their own business who know they arn't going anywhere.
5. Cost
Mortgage brokers are no cost to the individual. They get paid by the bank and this doesnt affect the interest rate or fees on your loan.