People often wonder whether they should go directly to a lender or through a mortgage broker to get a home loan. While both options have their merits, it can be like comparing apples and oranges, and working with a mortgage broker often proves to be more advantageous. Here’s eight reasons why:

  1. Borrower’s best interests
  2. Access to a wide range of lenders
  3. Stronger negotiation
  4. Time and stress saved
  5. Expert advice and guidance
  6. Customised solutions
  7. Cost transparency
  8. Ongoing support

Borrowers’ best interests

Mortgage brokers must act in borrower’s best interests. They must be transparent about loan products, borrower’s/applicant’s options, the applicable fees, charges, and any conflicts of interest.

Access to a wide range of lenders

Mortgage brokers access a wide range of lenders, including the big banks, credit unions, and specialised lenders that aren’t accessible to borrowers directly. Brokers compare a range of suitable home loan products relative to their client’s position and can source a customised product or loan terms. This increases the chances of getting the best fit when compared to borrowers going directly to lenders.

Stronger negotiation power

Good mortgage brokers have strong relationships with lenders and understand the nuances of negotiating favourable terms. They can get exclusive deals, discounts, or lower interest rates that generally borrowers are unable to get. This stronger negotiation power can make a significant difference in mortgage terms, ultimately saving borrowers money over the life of the loan.

Time and stress saved

The mortgage process can be complicated and time-consuming when dealing with the required paperwork, applications, and multiple lenders. Mortgage brokers streamline this process from gathering documentation to submitting applications and negotiating on the borrower’s behalf. This saves borrowers valuable time and reduces the stress involved.

Expert guidance and advice

Mortgage brokers are licensed professionals with specialised knowledge. Due to the high volumes of brokering loans for clients, brokers have a deep understanding of lending complexities and market trends. A good broker invests significant time to understand each client’s/applicant’s financial situation, circumstances, and goals to give personalised advice so borrowers are empowered to make informed decisions.

This expert guidance ranges between all the different borrower types and property purchase types (e.g. first-time buyers, investors, self-employed borrowers, and SMSF members).

Customised solutions

Every borrower’s financial situation is unique, and not all lenders cater to complex cases or offer loan products for all property transactions/buyer types. For example, not all lenders offer SMSF home loans or security substitutions/loan portability.

If a potential borrower has a less-than-ideal credit score, reduced borrowing capacity due to debt or credit card limits, or has self-employed income, the mortgage process can be challenging. Mortgage brokers specialise in finding solutions for complicated scenarios. They know which lenders have the right loan features for various circumstances or have flexible or ideal lending criteria for those circumstances.

Cost transparency

Most commonly, mortgage brokers are paid a fee or a commission by the lender, but some brokers charge a fee directly to their client. In either case, they must disclose their fee structure upfront. At Get Real Finance, we do not charge our clients a fee and we disclose the commission or fee we’ll receive in relation to the home loan clients are considering/applying for.

Ongoing support

Good mortgage brokers offer ongoing client support following a loan being finalised.

At Get Real Finance, we systematically ask lenders to review the variable interest rates applied on our clients' current loans. We do this every six months, whereas the industry standard is 12 months. Our dedicated loan review team works hard to renegotiate competitive rates to save our clients money.

As our client, you’ll quickly see that we’re about relationships, not transactions. And that even after your loan is paid out—you’re still our client. That’s because we exist to educate and motivate people to understand and leverage the power of getting real finance to achieve their goals.  

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