What’s the difference between using a Mortgage Broker or going straight to a Bank?

What’s the difference between using a Mortgage Broker or going straight to a Bank?

When you decide to buy a home, one of the first things you will need to do is work out how much you can afford to borrow and what you are prepared to spend on a home.  

Knowing what your borrowing power is will be determined by how much you have saved along with the consistency of savings you’ve managed to have, how much you earn, what your expenses and debts are along with your credit score and how you want your lending structured. 

Finding the best loan (which is not always the cheapest), can be time consuming and in most cases it can come down to the good old saying, ‘you don’t know what you don’t know’. 

Like everything these days, there are so many choices and if this is your first loan or things have changed or it's been some time since your last loan, chances are some expert advice could certainly make a difference to your experience.

Speaking with someone you can trust and that takes the time to understand what’s important to you as well as being prepared to work on finding the right loan is what every home buyer needs.

Below is an explanation of what the difference is between using a Mortgage Broker or going directly to a Bank

A mortgage broker has access to multiple lenders and their lending products. They help to find the most suitable loan and do all the research to provide you with what options are available. Mortgage brokers receive a fee or commission from the lenders they use for selling their loan products. Some brokers are paid a fee regardless of what  loan they recommend to their client. While others may get paid a higher fee for offering a certain loan. 

Always check that the broker you are speaking with is licensed to give you loan advice.

A mortgage broker should work to:

  • Understand what your needs and goals are 

  • Provide advice on what you can do to be more attractive to lenders

  • Work out what you can afford to borrow

  • Find options that will suit you and your situation 

  • Explain how each loan works and what it costs including interest rates, features and fees 

  • Apply for the loan on your behalf

  • Manage the process for you through to settlement

  • Answer any questions you may have

Like every professional service, it’s important to find a mortgage broker that you can work with and trust. Always do your research to find a licensed, well recommended broker 

An easy way to find a mortgage broker that’s right for you is through:

  • A professional association 

  • Your financial institution 

  • Recommendations from people you know or experts you are already working with

Going directly to a bank is best when you already have a relationship that you’re happy with and are confident you are getting the best deal. If you do go directly to a bank it may limit you to their specific loan products. If you are trying to do the research yourself, it may take you some time to speak with different banks to get an understanding or find the best-suited loan for your needs.

Buying a home can be exciting and fun if you surround yourself with the right experts.  Making sure you are informed and confident will make sure you have a much smoother process. 

As a buyer advocate, I work with mortgage brokers regularly to help clients buy the right home for the right price.

If you have any questions or would like to have access to our team of expert mortgage brokers, get in touch for an obligation free chat.

Please note:

In my business, I do not refer to professional services to gain any monetary reward.  My recommendations and referrals are genuine and are intended to provide an exceptional service to my clients knowing that they will receive a high level of service that is consistent with what they would expect from working with me and my expert associates. 


Lisa Stafford