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Broker Vs Bank: Why are more Aussie borrowers avoiding going direct to the bank?

Recent figures from the Mortgage and Finance Association of Australia (MFAA) indicate that an incredible three out of four home loan borrowers are relying on mortgage brokers to help them find a better loan, as opposed to going direct to a bank.

Undoubtedly reduced levels of service resulting from branch closures and reduced staffing have played a role in changing consumer preferences, but the days of picking a bank and staying with them for life are well and truly over. Consumers are choosing with their feet, and they’ve got good reason to. Here’s my take on why more and more borrowers are choosing a finance broker to help them get a better finance deal.

Why are more borrowers are choosing a finance broker over a bank:

• Maximum Borrowing Power: Banks have varied lending criteria, which means the difference one person can lend from one bank to the next can vary significantly (we are talking tens of thousands of dollars). This can impact finance approval and purchase price, especially if your financial situation is complex (e.g. self-employed).

• Real Choice: Your finance broker will have relationships with a wide range of lenders, giving you access to more loan options than any single bank can offer. Choice = options = savings.

• Tailored Loan Options: A bank will try to fit a buyer to their existing product – no fit, no funding. Your broker will find a product that fits the buyer’s needs and circumstances to facilitate a smooth settlement.

• Access to Benefits & Offers: Did you know some banks offer special products or offers based on the borrowers’ profession? Your broker knows which bank or lender will cater to a doctor, a teacher, a paramedic, self-employed business owner and that can mean faster approval and huge savings over the life of a loan.

• Negotiating Power: Your broker is on your side. They can access bank decision-makers directly and negotiate better rates or terms on your behalf. Experience is key here.

• Time-Saving: Your broker will handle much of the legwork, including paperwork and dealing with lenders, making the process smoother and less stressful for the buyer. A real person who can answer your questions whenever you need them – no need to sit on hold with a call centre for hours on end.

In a nutshell, using a finance broker makes the home buying process easier for all involved – from empowering borrowers with the knowledge on how much they can actually borrow, to saving them time and money in the long run.

For more information on how I can help you to find a better home loan, simply connect below or call direct on 0401 865 430.

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