Mortgage Brokers vs. Banks: Why Use a Broker?

mortgage broker, real estate purchasing, mortgage tips
There are different ways to finance a mortgage.

The most common are to either work with a mortgage broker or go directly to a bank. Both options serve the same purpose: to secure financing. But which one you choose can mean the difference between getting approved or denied.


One question we frequently get asked is, why use a mortgage broker?

This is a perfectly fair question. After all, brokers simply connect borrowers with lenders. Going directly to a financial institution seems like the obvious answer. But it also limits your options and could mean not getting approved depending on the circumstances.

Here we look at compelling reasons to use a mortgage broker and how to get started.

Personal Guidance at Every Step

Buying a home is anything but straightforward.

Your time is better spent preparing your finances and looking for homes. Mortgage brokers are there to assist with the entire process to answer your questions and act on your behalf. Comparing loans yourself can be extremely time consuming so the benefit here is you save valuable time.

Your broker will be able to:

  • Assess your financial circumstances: Lenders favour borrowers who meet certain criteria. Your mortgage broker works with you to evaluate your financial position and discuss potential loan options.
  • Find a suitable loan: Working with a broker gives access to more choices and narrows down the options to find a loan that best fits your financial needs. This increases your chances of gaining approval.
  • Complete the paperwork: Applying for a loan is a lengthy process. Your broker assists with completing the necessary paperwork and liaises with the loan assessor until the loan is approved.

The real value lies in personal assistance.

Increased Chances of Getting Approved

Getting denied for a loan is a devastating feeling. But it doesn’t mean your dreams of home ownership end there.

Mortgage brokers are able to assess your financial situation and advise on lenders who may be willing to consider your application. This is particularly beneficial if you’ve been denied in the past or have poor credit. Most brokers actually have access to lenders who specialise in these cases.

The result? Better chances of getting your loan approved.

Save Money

Mortgages are major financial decisions.

So it makes sense to explore every option. Getting a better rate potentially means saving tens of thousands of dollars in interest and reducing the loan term. Comparing loans from different lenders allows you to identify the best deals and secure financing that fits your circumstances.

Brokers are able to expand their search beyond your local bank and even negotiate for a better rate on your behalf. This dramatically increases your reach and helps you compare your options more efficiently. Which means more savings that may otherwise have not been available.

Going directly to a bank will likely not offer the same benefits.

Get Started

There are numerous steps involved in the loan process, which is why you need a professional by your side. Loan Monster connects you with the right loan to suit your needs and works with you at every step from assessing your financial circumstances to managing the application process. We do all the legwork so you can be more productive with your time.

Contact us today to speak to one of our brokers or use our enquiry form to get in touch. We will respond with more details shortly.


The information contained in this website should not be taken as constituting personal advice. We recommend that you seek professional assistance before acting upon any information provided or linked on.

Photo courtesy of jencu

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