So why use a Mortgage Broker, the answer is for multiple reasons:
First of all, a Mortgage broker should specialise in home loans and understand that rate is important, but that rate not the only thing. Eg. Do you need multiple splits, an offset account, is the proposed lending structure tax compliant. There are many facets to a persons individual financial needs to consider. Our Mortgage Brokers at Mortgage Advice are encouraged to study financial planning and/or accounting to ensure we understand more of the whole picture. This training is not provided by banks/lenders though it is invaluable when helping you decide on the best home loan for you.
Mortgage brokers save you the groundwork of finding the best mortgage rate and terms for your specific needs. We can often find a lender who will accept your home loan application where another bank might not. Banks have different policies in regards to employment and property type which are not advertised with the interest rate.
We have an large network of lenders that we work with to get you the most favourable mortgage rates and terms. Put it this way, the more lenders you have competing for your mortgage, the more you should save. Depending on the lending amount, we can even ask for special discounts in order to make the bank you like match a competitor (or at least get it closer).
A Mortgage broker is able to work one-on-one with each individual client, evaluate their specific needs and find a lender that suits them personally. The mortgage broker submits the request to one or more lenders and when the request is accepted the broker works closely with the lender until the home loan settles.
Mortgage brokers are also able to discuss a lower interest rate from lenders in trade for bringing in business. We can get better then market rates (advertised) with some lenders because we give them significant volume. We have been known to get lower rates then some of the internal bank staff.
What do bank staff do differently?
Banks staff are not as specialised in mortgage lending and may also look after other types of lending. A mortgage broker generally only deals with residential mortgages. In Mortgage Advice your mortgage broker works 95%+ of the time with home loans only. Though we are looking at hiring a dedicated commercial, car loan and asset finance specialist.
Bank loan officers process only mortgage loans originated by only their employer. They cant help you if their bank/lender says no, unlike a mortgage broker with multiple options available.
Loan officers at a bank are often limited to certain home loan products, guiding principles and criteria that they must follow. This limits the home loans available. Just remember they are employed by the bank to further the banks agenda, not necessarily yours.
Regardless if you choose to have your home loan with that particular loan officer or not, they are still getting paid a salary. With this in mind they may not be looking out for the best interest of you. We know of instances where bank staff have submitted loans that don’t qualify for the bank they work with, but do so in order to reach their own performance targets for their role.
I hope this was helpful and we look forward to helping you get the best loan possible for you. Not what the bank wants to give you.