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Blog   »   October 2014   »   Why Mortgage Brokers Are Better Than Banks

Why Mortgage Brokers Are Better Than Banks

To answer this question / statement, one must first look at how a mortgage broker gets paid and how the payment of that fee by a bank reflects on the interest rate to you.

The Simple Answer – Interest rates are not increased because you use a broker. Their fees are paid by the lending institution / bank out of the fees they charge. (The interest)

The bank makes considerable savings by getting brokers to do the work that would normally have been done by bank employees. Over the past number of years banks have been out-sourcing, that means fewer employees, smaller bank branches and in many cases the number of bank branches you now see has reduced. Consequently, the banks save by you using a broker.

Second Reason To Use A Broker

A broker gets paid on results. When you see a broker, he is interested in you, not how long he can “play” with your application so as to give the impression of diligence or how hard he / she is working and in some cases a way to impress the Manager  by appearing to be busy.

If the mortgage can be set, a broker will do it. If it can’t, we will tell you straight away and explain why – no 3 to 4 weeks to get a NO and then the bank officer generally doesn’t know why it was rejected or how it can be fixed, either because he is not sufficiently trained or nobody told him / her of the reasoning for that rejection.

Third Reason To Use A Broker

Remember when banks would have private interview officers, accountants, administration staff, credit officers and credit manager?  Now all gone at the branch level,  not to mention the overseas call centres.  Your finance broker takes the roll of all these now obsolete bank staff. Your broker is, for want of a better term, the old banks middle management.  We at Hunter Business Finance have that specialised knowledge which enables us to guide you through your loan application process.

Fourth Reason To Use A Broker

Brokers are generally accredited with a number of lenders. We look for the most appropriate lender for you. You may not qualify with Bank A but do with Bank B. If you bank with Bank A you would never know about Bank B, and remember bank A isn’t going to tell you that bank B has a better product.  We, your broker will and we know the lending policies of both banks. We give you the educated choice on rate, security and percentage of lend.

Fifth Reason To Use A Broker

We talk to you over the phone first (tried ringing your local bank branch lately?) discuss your needs then at a time and place suitable to you attend to the necessary documents be that at your work place, our office or your home at a time suitable to you be that in business hours or after hours.

When you phone us a person answers the phone and you get to talk to the same person handling you application every time. The result of this is you don’t have to explain everything again and again each time you call.

Summary

You pay no more to have a professional guide you through the loan / finance process. We, at Hunter Business Finance correlate all the information you provide, put it into a bank friendly format, keep you advised of the progress and iron out any unforseen hurdles.

If it costs no more, you get a better result and someone else does all the work.....Why wouldn’t you use us at Hunter Business Finance?

As our grandparents used to say:

“You don’t have a dog and do the barking yourself”.

Posted: 9/10/2014 1:00:46 PM by Hunter Business Finance | with 3 comments

Comments

Thank you for the positive feedback, it is greatly appreciated.
Hunter Business Finance , 23/10/2017 11:42:31 AM
Great post! Yes, there are still good reasons to choose a broker over a bank, despite the former being the number one public enemy after the mortgage bust. Thank you for showing the positive side of working with a broker.
Business Finance Melbourne, 20/10/2017 6:34:57 PM
Very Impressive article on mortgages, really a good post.
Laurenmaaria, 11/12/2014 7:55:12 PM



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