Q: Why?

Well there are several reasons.

Mortgage brokers will source the best loan for you depending on your financial circumstances

Q: Wouldn’t the bank do the same?

Well the banks would offer their best available product, however they won’t tell you if another bank has an even better product or deal for you. The role of a mortgage broker is to research the best loan for you (against other products available on the market) and recommend this to you based on your individual financial situation.

Could you imagine trying to work out the difference between 20-30 different loan products? That would take you ages!

This is why brokers get paid for what they do. They invest their time staying up to date with the latest loan products ensuring that you are always given the best loan available for your particular circumstances.

Q: Is the cheapest interest rate always the best?

Not necessarily. There are several things to look at when searching for the right loan. Even though a lower interest rate might be appealing, if the loan is not set up in the correct structure or you are not aware of all the fees and charges, it may actually cost you more in the long run. It is important to seek recommendations from your broker and discuss products such as offset accounts, particularly for investors as they can preserve your future tax benefit.

 Also, for self-employed borrowers, there are several lending options available not offered by all banks. Once again, your mortgage broker can discuss the range of strategies and options offered by many lenders as opposed to one or two products that a bank would discuss with you.

Many bank employees may not have the wealth of knowledge about the loan products available in the market place, as they will be limited to the products available to them.