Bank or Broker?

I’ve been banking with this bank for years and they turned me down for a mortgage!

Money might be ‘cheap’ right now but getting a mortgage isn’t all that easy. I know people seeking to purchase another property who have been turned down for a Mortgage by their bank.

Banks are tending to put those seeking a mortgage through the hoops, yes, heaps of loan applications and it doesn’t matter if you have been banking with them for years. Despite loyalty and tenure, there is absolutely no guarantee that you will get a mortgage from your bank. That’s where a Mortgage Broker comes in. They tend to be skilled in acquiring you an affordable loan. That’s because they have the knowledge, skills and the know how to understand where to acquire a loan that best suits your needs.

Under normal lending circumstances Mortgage Brokers don’t usually charge you for their advice as they charge the banks or lending institutes a commission percentage based on the loan you are taking out. It is always best to understand upfront if they are charging for their advice – so whatever you do, pop that question first “How much do you charge me for your advice?”

You will note that I stated in the last paragraph, ‘under normal lending circumstances…’, so if you need the likes of a ‘bridging loan’ you may find that either the Mortgage Broker doesn’t specialise in these, or they will charge you for assisting you in getting such a loan. This is because a bank won’t pay a Mortgage Broker for arranging or navigating the acquisition of a bridging finance.

Just like Real Estate Agents, not all Mortgage Brokers are made equal. It’s important to ask around about who to use as a Mortgage Broker as some specialise in working with clients with two incomes, one income, sole trading clients, asset rich clients and commercial clients. Some are better at working with Banks, whilst others are great with private lending institutes.

One thing I do know, is that a Mortgage Broker will definitely take the stress out of filling in all those loan applications! So, if you are looking for a Mortgage Broker, don’t hesitate to contact me for a recommendation.

Disclaimer - This is a opinion piece written by Linda, and is not the opinion of Ray White.

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