Finance: Broker Vs. Banker
When looking to take out a home loan, you can either consult a mortgage broker or go straight to a bank. There are a number of reasons why it would be beneficial to consult a broker over a bank.
Training and Knowledge
For many years it was assumed that you could work in a fish and chip shop one day then be a finance broker the next, and in some cases this was true.
Nowadays, mortgage brokers are required to be licensed with either their own Australian Credit License or a Representative of someone with a license. These are managed by ASIC by an application process which is reviewed annually along with a specific number of hours of training and development required to keep this license. Mortgage brokers must also have a Certificate IV in Financial Services (Mortgage & Finance Broking) and some also have a Diploma of Financial Services (Finance & Mortgage Broking Management) like we do at Adventurer Finance Solutions.
Banks have an Australian Credit License but the individual Loan Managers and Officers are not required to. They are also not required to have the Certificate IV or Diploma and there is no monitoring by ASIC of their individual training & development.
And The Costs???
A broker is paid via a commission directly from the lender. You as our client do not pay for this commission and it is not tacked on to your loan in any way. Your broker is working for you and looking for the best product amongst their many lenders that suits your individual situation. Your broker is not paid a cent until your loan settles and should you close out your loan or refinance to another lender the broker will have all or a percentage of these commissions clawed back by the lender. It is in the broker’s best interest to put you in the best loan first time round.
Brokers are also required by law to disclose to you all of the commissions they are receiving from the lender for your loan. A bank employee on the other hand is receiving a salary plus extra commissions if they settle more loans than their target plus the other products or insurances they may try to sell you. They are not required to disclose their salary or their commissions to you.
What’s In It For You?
More Information: Choosing a home loan is serious business, and for this reason you want to be confident that you are making the right decision. Being informed and having all your questions answered to your satisfaction is an important part of this process. A professional mortgage broker will be able to explain to you the terms, costs and operation of the home loan that you are signing up for. A loan officer from a bank on the other hand, may not have the time, knowledge or inclination to help you understand all the options available to you.
More Options: A bank will generally offer you a handful of loan options; a broker on the other hand, has access to numerous lenders and hundreds of loan options which mean that it is more likely a broker will be able to find a loan to suit your financial situation.
If your first loan application is denied with a bank, you will have to find another lender on your own, a task that is both tedious and time consuming. With a broker, they are able to find you a new lender, often do this in a matter of hours.
If you have bad credit history, it is also very difficult to take out a loan with a bank. With very strict guidelines in place, banks generally won’t want to have anything to do with you. A mortgage broker on the other hand can offer a range of loan products specially designed for people in your position.
More Support: When choosing to take out a loan through a broker, you can be confident that you are getting the best value for money and are receiving professional assistance from someone who will be there with you every step of the way – especially if you choose us. Adventurer Finance Solutions will navigate you through it all.
Adventurer Finance Solutions are a fully accredited finance and mortgage broker service specialising in home loans, investment loans, car loans with over 20 years experience in the finance industry.
Whatever your need, our approach is to make the process as seamless as possible by doing the hard work for you. Fully mobile and servicing South East Queensland including the Gold Coast, Tweed Coast, Northern Rivers, Brisbane and the Sunshine Coast we also have clients Australia wide!
Simon 0430 951 813 OR Alyssa 0433 930 169