Forums / Getting Technical / Finance / Mortgage Brokers vs Banks

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  • Profile photo of Bradles CBradles C
    Participant
    @bradles-c
    Join Date: 2004
    Post Count: 52

    Hi guys,

    Can someone please outline the positives and negatives for getting finance through a mortgage broker vs a bank. I currently use Bendigo Bank for my home loan and I am almost ready to purchase my first IP.

    I am sure I could get a better deal if I use a mortgage broker. What sort of fees do you charge to find the best loans ?

    Thanks heaps [biggrin]

    Brad

    Profile photo of Mobile MortgageMobile Mortgage
    Member
    @mobile-mortgage
    Join Date: 2003
    Post Count: 913

    Hi Brad,
    The majority of Mortgage Brokers don’t charge their clients a fee for their service, most get paid a commission from the lending Institution after settlement, cheers.

    Regards Steven.

    Steven Crane
    Interest Free Home Loan Agent
    [email protected]
    Phone: 0438 581 436

    PLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.

    Profile photo of DerekDerek
    Member
    @derek
    Join Date: 2004
    Post Count: 3,544

    Hi Bradles,

    A broker has the advantage of having acces to a whole range of lenders each with their own range of products.

    By way of contrast a bank is limited by their policies and products.

    As Steven said a broker earns their income from a commission paid by the bank – you do not have to pay anything.

    I would also add that you are more likely to access an ‘investing broker’ on forums such as this and because of this they will be familiar with your likely short & long term needs.

    Derek
    [email protected]

    Property Investment Support Available.

    Profile photo of Alistair PerryAlistair Perry
    Participant
    @aperry
    Join Date: 2004
    Post Count: 891

    There are new products coming out all the time from different lenders and it would take a lot of work to keep up to date with them if you don’t do so as a business. Also, as you don’t have to pay brokers yourself and you’re unlikely to get a better deal by going direct, I can’t see any reason not to use a broker.

    Profile photo of PropertyGuruPropertyGuru
    Participant
    @propertyguru
    Join Date: 2003
    Post Count: 1,502

    just to add what others said some times you can get better rates than bank just going through broker and some times part of broker commission also [:)]

    Cheers
    PropertyGuRu [sultan]
    Mortgage Consultant
    [email protected]
    MSN ID: amitash, Yahoo Id: bornguru

    NZ loan pre approval from OZ in 48 hours

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