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When trying to secure financing to buy a new property in Australia, deciding whether to go to a bank or a mortgage broker can be confusing and as such, many don’t even really know what the difference between the two is. After all, most people don’t purchase property on a regular basis (a process which also includes engaging Queensland conveyancing or a Gold Coast conveyancing firm). However, knowing what the differences are between these two very different kinds of help can make getting excellent prices for your mortgage that much easier. Below, we take a closer look at exactly what bank lenders and mortgage brokers are, making a clear distinction between the two so that you can make the most educated choice possible.
Bank Loan Officers: What Are They?
Working with a lending institution like a bank or a credit union means working with bank loan officers. While these people can give you access to many different types of loans, all of that financing is only going to come from one source: the institution in question. In other words, you are restricted to working within the bank or credit union’s terms. If the loan officer processes your application and deems you unqualified, they will be unable to help you further. This can be a very frustrating experience, and can make many people looking for a new home feel like giving up altogether.
What About Mortgage Brokers?
In the old days, bank loan officers were your only choice when you wanted to buy a new home. Fortunately, you now have the option of working with mortgage brokers. The thing that really sets mortgage brokers apart from bank loan officers is that they work with numerous lending institutions at a time. Instead of basing a decision on one strict set of criteria, a mortgage broker evaluates your current credit situation and ability to pay, then works to find lenders with the best available terms for you. Generally, you are much more likely to find a larger range of options using a mortgage broker.
Get The Best Deal
The bottom line for you, as a new home buyer is securing the best loan possible. You definitely don’t want to pay an insanely high interest rate, and you need to secure a monthly payment that is reasonable and easy for you to meet. Otherwise, you run the risk of facing repossession – and no one wants to go through that kind of turmoil. Considering the details outlined above, you’ll more than likely find that mortgage brokers simply have more to offer you in terms of selection and opportunity. Whatever you decide, though, always remember that there is sure to be a mortgage that’s right for you somewhere – you just need to go out and find it.