Buying your first home or investing in property are the biggest decisions a person or family can make. There are so many loopholes and pitfalls it can be hard to navigate, it’s best to find someone to guide you through the process. But should you go directly to the bank or should you use a mortgage broker?

To help you decide, we have come up with the key differences between the two.

What is the difference?

The key difference is that a Mortgage Banker works with only one bank. This means that they are limited to the products of the bank they work with. However, a Mortgage Broker isn’t part of anyone institution. This gives them far more flexibility and access to hundreds of products across dozens of providers.

1.   Flexibility

Because Mortgage bankers are institutional, they will never have the flexibility of a mortgage broker. The broker can access offerings and products from multiple, if not all banks and lending institutions.

Brokers have no vested interest in a bank and will be able to give you impartial advice and guidance.  This means a broker will be able to offer you far more options with their terms and conditions to suit your unique circumstances.

2.   Negotiation

Dealing with a bank means you are dealing directly with the source and bankers will try to give you the best rate they can. However, they will have many extenuating factors including your history with the bank, credit and steady income, that may hinder their ability to get you the best deal. 

However, a broker can negotiate with multiple lending institutions, giving them a lot more leverage. Banks and lending institutions want a broker's business and will go the extra distance to get the loan over the line.

3.   Representation

One of the critical differences between a banker and a broker is who they represent. The banker is always paid by the bank and is their representative. A broker is your representative. They will get to know you and your circumstances in a way a banker doesn’t have the opportunity to.

4.   Experience

Bankers are great at operating within their lending policies and the rules of their institution. Brokers have experience with many products and institutions. They have been through the process countless times and know the pitfalls and hurdles that may occur during the process. Including making sure, when it is time, that you have the best chance when you apply, rather than submitting and hoping.

Brokers also have a good understanding of any government initiatives on both State and Federal, such as the First Home Owners’s Grant, Home Builder Grant and First Home Buyer Assistance Scheme. A good broker can streamline the process and help take the stress out of the experience.

ZENRG Finance specialises in helping you find the best loan, no matter what your situation. If you are looking to invest in Property, ZENRG caters to First Home Buyers, First Home Investors, Multiple Home Investors and Complex investors. Or if you were a First Home Buyer, ZENRG Finances has access to over 30 lending institutions and hundreds of home loan products.

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