It’s a lot easier to be a Mortgage Broker like us and have a wider range of options for people to choose from than work for the bank and have to try and convince your customer that the single choice you have is the right one for them.
Still, many people wonder why they should use a broker instead of just going to the bank they use already. The short answer is that a broker works for you, bank staff work for the bank. It’s your Mortgage Broker’s job to go to bat for you to get you the right mortgage. The bank staff do have one big advantage, and that is the millions of dollars they spend in advertising which builds familiarity and trust with the public.
Fortunately, people are becoming more and more familiar with how Mortgage Brokers work. Also, the introduction of the Australian Credit Licence and National Consumer Credit Protection Act in 2009, which is overseen by ASIC, has further ensured borrowers’ rights are protected.
Whether you have ever used a Mortgage Broker or not, I would also argue that the Mortgage Broking industry has resulted in lower cost loans for everyone. In the past a new lender with a cheap loan had to contend with the prohibitive costs of large scale advertising and building their own network of mobile lending staff, which in turn impacts on the cost of their loans. Now a new lender simply needs to offer their loans through Mortgage Brokers and they have an immediate nationwide sales network at their disposal. And if that lender has a truly competitive loan, Mortgage Brokers will scramble to offer it to their clients because it will help them win your businesses. The end result is a far more competitive mortgage market, with greater choice and cheaper loans for everyone.
If you still aren’t sure whether a Bank or Mortgage Broker is best for you, download my “Broker vs Bank Comparison” guide using the link below: