Is it Better to Get a Mortgage From a Bank or Broker?

The Australian mortgage market is dominated by non-mutual banks, even though small lenders are increasingly eating into the pie. Mortgage brokers act as the go-between the banks and other lenders and leverage their expertise to arrange for a home loan that fits your plan.

 To do this, the mortgage broker will work with you to understand your needs and goals; find out what you can afford, and explain how each loan works and what it costs. The brokers will also guide you through the mortgage application process until the settlement. When probing a broker, ask if they offer a wide selection of different lenders, the reasons they recommend a specific loan, and the loan fees and accompanying features. 

 Lender’s Mortgage Insurance (LMI)

It is also critical to know the lender’s mortgage insurance (LMI) and strategies to avoid it. Using the bank loan officer gives you direct access to the best deals offered by the lender. An experienced bank official will walk you through the bank policies and loan offerings. If you have an active loan with the bank, the official can help you structure the loan and introduce other products on the menu. To get a better mortgage offer from the bank, do thorough research to understand the prevailing rates and what offers are being awarded to new borrowers. Other pertinent issues include asking if the bank can beat the offers from other lenders and whether you can refinance for a more considerable sum. 

If you live in Perth and surrounding Western Australia (WA), there are many Mortgage and Finance Brokers and home loan brokers. Most of them are ranked top because they give you the time to do the things you want. Getting financing through mortgage broker Perth is easy when you seek services from an owner-operated business working with all types of borrowers. It is important to choose a broker that offers tailored and thoughtful advice and works with many leading lenders. You can choose our hassle-free, online mortgage broking process for a speedy response. Most loan products include first-time home buyer loans, construction loans, home purchases, and refinancing. Find out below if it is better to get a mortgage from a bank or borrower.

Home Loan Options

To stay competitive, mortgage lenders often provide a variety of home loan options and interest rates. Mortgage brokers will use their market understanding to match you with the right home loan. The scope of bank-issued home loans is limited to own products and services. If the criteria are stringent, your home loan application will certainly be declined. At Orange Mortgage and Finance Brokers, we constantly communicate with our mortgage applicants to keep them in the know and updated on the prevailing situation.

Convenience

Brokers care a lot about customer convenience. With the arrival of online mortgage brokers, loan applicants can now safely apply and submit documents without visitation. Although banks also have online loan application options, most entities will request that you visit the nearest branch to submit relevant loan documentation. Getting the right mortgage advice is essential. At an accredited mortgage consultant, you will be happy to get answers to all questions you might have on mortgages. 

Specialization

Mortgage brokers enjoy the latitude of working with many mortgage lenders. The exposure gives them a good understanding of how the home loan process works and what policies are spelled by the listed lenders. Banks offer an array of services and may therefore lack mortgage expertise. Also, banks only specialize in their lending policies and offerings.

Assessment of Payslips and Documents

When it comes to assessing relevant loan application documents such as payslips, an experienced mortgage credit officer will carefully analyze your application and come up with a favourable outcome. With banks, the assigned credit manager might exercise poor judgment by misinterpreting the payslip without taking time to probe the income. The seamless online mortgage application process is designed to cut the paperwork and speed the loan application process. Should you need help, call or visit a certified mortgage broker.

Interest Rates

Mortgage brokers will closely review your home loan at assigned intervals to see if you are still getting competitive mortgage rates. On their part, banks usually are not obliged to ensure you get competitive interest rates or complementary incentives. Clients looking to refinance their mortgages will be happy to know that some banks offer lower interest rates than other banks. The new loan will have the right structure.