Using broker vs approaching bank directly?

Over 50% of mortgages are arranged through mortgage brokers and trend is moving up steadily. There are good reasons for it.

Choice

The biggest advantage of a broker over a bank is choice.

When you sit in front of a mortgage broker, you are sitting in front of 30+ lenders and hundreds of products, versus just a handful of products of one bank.

This is especially important now because every lenders try to differentiate themselves from the rest through different ways such as interest rate and loan feature to attract more customers, and on the other hand, lenders had to adjust their lending practice to conform with government's tight regulatory requirement, which makes lending policy and term/conditions more difficult for individual to understand.

Qualified mortgage brokers are well equipped with knowledge of lenders' offers and policies to help you choose the loan product that is is right for you.

They can also negotiate with lenders for better deals, turning competitions among lenders to your advantage.

Experience and service

Banks are big companies and they tend to move staff around and reward experienced and performing staff with promotions away from front line and customer. So it is not uncommon that your biggest finance commitment is dealt with several different junior bank staff.

Mortgage brokers often own their business and mortgage is all they do and for a long run. So they can build up experience in this specific area over years of helping clients with home loans. They are also committed to you in a long term.

Time saving

Following up the progress of your loan application is time consuming and frustrating.

With a good mortgage broker, you don't need to call the banks to chase up the application. They will have a system for real time application status, address any issues promptly and keep you informed, saving you time.

Personal banker

Staff in the bank often move, so even when you have established a working relationship with a bank manager, they change jobs before you know it.

Mortgage brokers are in the business for the long haul. It is in their interest to look after you and your finance requirement in long term. A good mortgage broker will help you keep your updated with market condition and advise options available for you in case any changes are required to your mortgage.

Whether you are looking to buy your first home, next home, refinance, or invest in property, a mortgage broker can find you the loan solution that is right for you. You don't need to search and try from one lender to another. They can also help you with paperwork to make the application process much easier. And you get all these services for free.