What does a broker offer that a bank can't?
When researching options for home and business loans, most Australians head straight to their nearest bank. It can be hard to put your trust in a broker that you’ve never heard of, but a good mortgage broker will be able to improve your experience throughout the lending process.
At Lendfin, we compare hundreds of financial products to ensure we offer the best solution for our customers. We work with both residential and commercial lending, so can help optimise your entire lending portfolio. Here are our top 5 reasons to visit a mortgage broker before taking out any personal or business loan.
Brokers value loyalty.
Although you may have been with the same bank since childhood, your loyalty has no bearing on whether you will be offered the best rates. Rate and fee discounts are generally reserved for winning new customers, whilst long-term customers end up with the advertised loan rates. Brokers have access to discounted rates and can offer these to both new and existing customers. By going directly to your bank you could be missing out on thousands of dollars of savings and lower rates.
Brokers are experts in complex lending portfolios.
Although banks deal in loans daily, they have set structures and inflexible lending criteria which may not be suitable for complex loan situations. As brokers operate as small business with minimal structure, they are able to work with more complex client situations (eg. self employed, multiple securities, high risk etc.) to structure a solution that suits both the client and the lender.
Brokers offer more choice in products.
Although a bank loan officer will try and offer the best product for your situation, they are limited by the products offered by their employer. Conversely, finance brokers have access to multiple lenders and are not just limited to the major banks. A bank officer is not likely to tell you about a better deal at their competitor down the road, but a mortgage broker has this information at their fingertips. They often compare hundreds of financial products to find the best deal for your personal situation.
Brokers provide a personal touch.
Brokers know that they need to earn your trust. Whilst Australian banks have a AAA reputation, brokers work hard to prove that they are always working for the best interests of their clients. Banks are notorious for being bad communicators, so having a broker as a buffer between yourself and the lender can minimise frustrations. The broker acts as a personal banker throughout your application to ensure that you are kept informed at all times. Furthermore, brokers are paid on a commission only basis, so they will go above and beyond to keep your business.
Brokers can offer discounted rates.
Whilst your bank may offer you a good rate, brokers have negotiating power due to the large volume of transactions. Brokers are a major source of business for the banks, and so receive premium service and rates to maintain a strong relationship.
At Lendfin, we have almost 10 years of experience helping clients secure the best deals for their personal and business lending portfolios. Contact us today to find out how we can help you connect your finance and get a better deal.