Use a mortgage broker or go direct to a bank?

Posted on Posted in investment loans

Use a mortgage broker or go direct to a bank?

Borrowers are now more than ever inclined to use a mortgage broker than go direct to a bank. This is because they can compare and recommend products from as many over 30 different lenders, but according to Melbourne mortgage broker Oak Laurel.

 

Why use a Mortgage Broker?

The reason that Mortgage Brokers have become so popular in Australia and continue to gain popularity is because they make finding the best loan easier. Good mortgage brokers have a computer software that can search through and compare hundreds of different loans using different criteria from the lenders that they have on their panel. This saves borrowers a significant amount of time and effort and is more efficient in comparing options..

A good mortgage broker will have a good understanding of how the loan process works and the lending criteria used by the different lending institutions. This can make for a much faster loan application process

This is really important  in today’s fast  paced environment.

Finding a good mortgage broker in Melbourne

Only use a mortgage broker who is a member of the Mortgage Industry Association of Australia (MIAA) or the Finance Brokers Association of Australia (FBAA) as this is a standard requirement for a mortgage broker.

Use a mortgage broker that know the type of finance that is best for people in your situation. For instance if you are an investor use a broker that knows about investment loans. Still not sure which broker to use? Contact melbourne mortgage broker Oak Laurel especially if you have a special lending need.

As with all financial services and major purchases, your broker should provide you with at least three quotes from different lenders. In this way you can feel confident you have obtained the best possible deal.

Ask your mortgage broker why they are recommending the loans that they have. The answer should be associated with the requirements that you provided to them when completing the client needs analysis. Some lenders pay higher commissions to the broker than others and an unscrupulous mortgage broker may try and steer you to the loan with the highest commission.

Good luck and borrow  well!