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Why choose a mortgage broker over a bank?

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Why choose a mortgage broker over a bank?

Mortgage brokers Melbourne or home loan brokers as they’re sometimes known are becoming increasingly popular with Australian borrowers. In fact, these days, they write more than 50% of all home loans.

Here we look at some of the reasons why enlisting the services of a mortgage broker might be a better idea than going directly to a bank for your next home loan.

It’s easier
You won’t have to spend your precious time and energy searching for the best home loan on the market and assessing your eligibility. Your home loan broker will do the work for you. They have specialist knowledge in home loans and will analyse your financial situation and find the best loans to meet your circumstances.

Plus, a broker will only apply for a loan you’re likely to be approved for, saving you time and hassle.

They’re free
Contrary to popular belief, using a mortgage broker will generally cost you nothing. And in most cases, you’ll pay less for your home loan than going via a bank. That’s because a home loan broker has access to a variety of lenders and products so they can recommend the best deal for your situation.

More choice
One of the biggest advantages of using a home loan broker over a bank is choice. Brokers can choose from a panel of lenders and many products, which means they can shop around for the best deal. Whereas banks will only offer you their products, which aren’t necessarily the best on the market.

Better deals
Home loan brokers have excellent negotiating power because lenders are keen to get their business. This means they can often get you a low-interest rate by doing their research and negotiating a great deal.

A personal banker
Think of your mortgage broker as a personal banker. They’re as invested in the process as you are as they’ll only get paid if your loan gets approved. They’re experts in the home loan process and will guide you on every step of the journey. They’ll take the time to answer your questions, rather than directing you to another department like the banks often do.

Also, bank staff often move around or leave before you’ve had the chance to develop a relationship with them. On the other hand, home loan brokers, have often been running their business for years. They’ll keep track of your needs long after you’ve secured your loan and can help you in the future if you’re looking to refinance or buy another property.

Looking for a mortgage broker in Melbourne?

Mel Finance offers a friendly, flexible and efficient mortgage broking service, personalised to meet your needs. We’re dedicated to finding the best loan for your circumstances. Contact us today to discuss the right financial arrangement for you.

Related Links:

How To Choose A Mortgage Broker
5 Reasons To Refinance Your Mortgage
Why Would I Refinance My Mortgage?

    Lumbini Wekunagoda

    Lumbini Wekunagoda

    Lumbini marries practical insights with solid financial knowledge to craft tailored solutions. Lumbini has a diploma in Mortgage Broking, a Certificate IV, a supplementary Diploma in Mortgage Broking and Finance, and an MBA from the prestigious University of Wales. As an ASIC registered , licensed Mortgage Broker (CRN:444210), Lumbini upholds the highest standards of professionalism and ethics, aligning his practice with the Mortgage and Finance Association of Australia (MFAA).

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