David VS Goliath – Why Use a Broker and Not Your Local Bank?

Finance & Insurance

Recently in the media there has been much discussion around the growing use of Mortgage Brokers with over 50% of all borrowers now obtaining their loans through a broker opposed to dealing direct with a bank. Added to this is the increasing number of finance and mortgage brokers required in the market place to cater for customers needs. The last number I saw bandied around was that there are now close to 16,000 mortgage and finance brokers  nationally, and I am sure it could even be more by now.

But the real question that should be asked is why use a Broker instead of your local bank branch manager?

There are many many reasons – but let’s stick to the top four.

1. Choice – with so many lenders to choose from are you really getting the best deal through your local bank branch. When you walk into your local branch you get one option where as when you sit down with a broker you can be presented over 10+ banks and over 100’s of loan choices. And best of all the discussion will be around what will suit you best. More and more of my customers are deriving their income from non traditional means (think Uber/Internet blogging/start up businesses) and that is not always catered for by the main stream lenders.
2. Experience and education – a bank branch manager may never have actually processed a home loan and may only have a managerial role. So whilst their role is essential in the running of the branch they may be well versed in the finer points of getting a home loan. A mortgage broker is required to be kept up to date with varying options as well being required to participate in ongoing training. They are also held accountable with professional and ethical standards through being bound by a code of practice.
3. A broker cares because the business in their own – as someone who has been on both sides of the fence (PAYG Lender at a Major and now Broker in own business) I approach the role of mortgage brokers as if I am your personal banker. The motto is simply I am here to help! If you’re not happy than neither am I.
4. Convenience and flexibility – A broker is not sitting inside an office from 9-5 so they are more able to meet you when and where it suits and bring all the information with them. A one stop shop. They also have other experts around them so that they can put you in touch with a team of experts to help you navigate through next steps.

In the end it makes sense to have an expert working for you who is funded by all of the banks, opposed to dealing with just one bank who may not be able to secure a suitable loan for your specific situation.

As a Home Loan Connexion broker I have a panel of 30+ banks that my clients have access to ensuring they have the choices required for buying their dream home.