Whether to go to Bank directly or a Mortgage Adviser for your Home Loan?
When looking for a home loan, primarily you have two main options: a mortgage broker or the bank directly. The choice between using a mortgage broker or getting a home loan directly from a bank will depend upon one’s individual preference but do consider the below.
When you are looking for a home loan, whether it is for your first home, investment, restructure or refinance or any other purpose, you want the best out of your home loan, which includes competitive interest rates and the lending terms which suit your needs and requirements.
Banks these days offer a wide range of mortgage options to choose from. But when you are dealing with them directly, their advice to you will obviously be restricted to their own products. Whilst this is not a bad choice in itself, this does not allow you to compare the offer at hand with what could potentially better offer from competitor lenders.
Different lenders have their own policies and rules which they are guided by when assessing your lending application. Now, because of this difference of policies between various lenders, you may find your lending application as you requested may be more difficult for approval as compared to other lenders. In most cases, there could be a difference in the borrowing amount or the loan terms could be harder with one lender as compared to the other.
This is where a mortgage broker might potentially be a better choice for you.
The difference between banks and mortgage brokers is that banks can only offer their own products, while mortgage brokers can present multiple mortgage options. Because the mortgage adviser deals with multiple lenders and the adviser gets paid by the lender, so his advice to you is likely to be based on a comparison between different lenders and his advice will be impartial as he would get paid by whichever lender you choose to go with. And then, they do not charge you fee for their services because they get paid by the lender bank.
Mortgage Advisers are trained professionals who have in-depth knowledge of the policies and guidelines of various lenders and they are more likely to get you an offer closer to your requirements and expectations. Once the lending is approved in principle, they are also more likely to negotiate better lending terms for you, which not only will likely include competitive interest rates and cash back but also the best possible loan structure as per your current situation & needs, aimed at saving you the interest costs to the extent possible.
An ideal lending advice package should not be restricted to just the competitive interest rates and cash back but should include advice on the way you structure your lending to optimise interest cost savings, and also, not just initially but should be periodically reviewed as your situation changes.
Mortgage Advisers deliver this service to you, not just by setting up your loan initially, but also with periodical reviews, which may potentially save your substantial amount of money. With the recent sharp increase in interest rates, there is no better time to review your lending portfolio and talk to a mortgage broker.
Many times, you could be surprised by the positive outcomes from such free & no obligation reviews with mortgage advisers, benefiting you in ways that you never thought of.
The mortgage adviser could recommend host of options for you to consider, depending upon your situation, which may include re-fixing your loans, a complete restructure of your lending portfolio or refinance to another lender or any other.
Any time there is a change in your personal financial situation, it triggers a need for a review. Talk to a mortgage adviser – it does not cost you and may potentially save you a lot of money.