If you’ve ever purchased a property in Australia the likelihood is you’ve probably required finance from a bank of some sort. When you’re in need of a home loan, there are three ways to go about it; apply with your bank directly, shop around for a deal yourself or get a mortgage broker to do it all for you.
With almost two decades of experience in the financial services and property industries I’ve seen a distinct change in the preference when it comes to deciding between going to a bank or utilising the services of a mortgage broker.
Traditionally, banking was a family affair. Often using the same bank as your parents and their parents before. Banks were seen as a trusted source of information and up until recently we trusted that our “family” bank would always give us the best deal. However, in recent years that has changed. Banks have left a bad taste in the mouth of Australian borrowers with our research indicating the vast majority of mortgages in 2022 will be written by mortgage brokers.
We’ve put together a list of reasons why a mortgage broker is proving a more popular option in 2022.
1. Convenience
If you’re anything like the majority of Australians, at some point you’ve probably made a mad dash from school pick-up or work to try and get to the bank before it shuts. Mortgage brokers are more flexible with their hours and are sometimes willing to do after-hours or weekends, meeting at a time and place that is convenient for you. This is a huge benefit for full-time workers or families with commitments to consider when wanting to find an investment property or selling up and moving on.
2. A broker will do the legwork for you
Mortgage brokers can find the right home loan for your needs and circumstances. This is inclusive of paperwork, sourcing pre-approval and assisting to apply for government grants or incentives. A good mortgage broker will have a system for ensuring you are kept informed throughout the whole process, saving you time and enabling you to stay focused on finding your ideal home.
3. Brokers give you more options
Banks can only offer you their own products and must adhere to their own strict lending policies which means you can be missing out on a home loan that could be better suited to your needs. When applying for a loan, the bank officer doesn’t necessarily know that you don’t qualify but they convince you to apply for the loan anyway. The staff member is hoping that the deal will go through, which means that many people get declined and miss out on buying their dream home.
A broker, on the other hand, has a panel of lenders and many products to choose from so they will only apply with a lender that will likely approve your loan. This means you’re saving time and hassle in your application process.
Ultimately, when weighing up a mortgage broker vs bank, you need to make your own informed decisions. The advice you will find anywhere on the internet, including here, cannot take your personal needs and situation into consideration. When you are dealing with such a significant decision like purchasing a home you should always seek the advice of someone specialised in this area before going ahead.