Why use a mortgage broker instead of a bank
The purpose of a mortgage broker
Finance brokers are providers of comprehensive, useful and professional loan advice to consumers. A broker acts as a middleman between the consumer and potential lenders. A broker works on your behalf with several banks to find the best mortgage lender for your needs. Consumers who use a broker want more than just a mortgage. Consumers are looking for a business relationship with a skilled financial expert who helps them to make informed financial decisions.
Why use a mortgage broker?
Using a mortgage broker can make a significant difference in the interest rate you pay, the points you are assessed on, how difficult it is for you to qualify for a loan, and the time it takes to get your loan approved.When using a mortgage broker, you often get the best deal. It also makes the overall loan process easier – and quicker – for the consumer. Brokers provide you access to specialist lenders and help you through application process.
How to choose a good broker?
Consumers want a broker who has their best interests at heart, is trustworthy and provides an individualised service. Brokers can be chosen by many factors. Often a broker is selected because of a recommendation, proximity to the client’s location, and of course through marketing and advertising.
The leading indicators to know if a broker is highly competent are:
• Trust between consumer and mortgage broker: This is essential, as the broker should act in the best interests of the consumer. Trust is established through transparency from the broker’s side. The right broker will proof not to be swayed by the highest commission from a particular lender.
• Simplifies the process: For many, the difference between a standard variable and a fixed rate is not clear. Some brokers use jargon that is hard to follow for their consumers. You need a broker who can break down the information and explain it in simple terms. The process should be clear, so you are not going blindfolded through the mortgage process.
• Balance between professionalism and friendliness: Besides being professional, a broker should also be personable. After all, you are trusting them with very personal details such as your bank details, financial history and more.
• Personal recommendation: Within the broker industry, personal recommendations is a big factor which impacts how consumers choose a broker. For a broker, having a strong reputation is both their legacy and livelihood.
Mortgage Broker vs. Bank
MPA magazine asked Graeme Holm, director of Infinity Group Australia how banks and brokers work better together.
“Today the most important thing for both banks and brokers to acknowledge and implement is that clients should always come first and profits last. Meeting the best interests of clients is how banks and brokers can operate together within the financial services sector. Both should provide direct and indirect service offerings and competitive opportunities to consumers.
“If we can all work towards a client-centric business model that provides needs-based solutions to consumers, then both banks and brokers can co-exist while competing to provide exceptional consumer outcomes.”
Find a broker that not just has all the qualities mentioned above but is also an excellent communicator who recognises your needs and goals. A broker who keeps in contact to give updates and news throughout their mortgage journey.
Our director is included in Australia’s top 100 brokers, listed #13. We were also a finalist for the Customer Service Experience Category from Optus Awards. If you need assistance with your mortgage loan journey, we would love to have you on board as one of our “financial family members”.
Email us at Info@InfinityGroupAustralia.com.auor call 1800 4634 6489 to speak to one of our brokers.