Are mortgage brokers good? The answer is YES, there are some very good mortgage brokers! Furthermore, as a general rule going to a broker is better than going direct to the bank. This is true even if you already know which bank you want to use. This is because a mortgage broker will look after you throughout the process instead of leaving you up to the bank’s ‘system’. Moreover, with good mortgage brokers, you get ongoing service so that if things change they can help you stay getting a great deal.
The advantages of using a mortgage broker include:
More choice of lenders and therefore more choice of loans than visiting a bank.
Bank staff can only recommend the loans that their bank has to offer so they may try to convince you to get a product that does not suit you or is not as good as a loan at another bank or lender.
A good broker knows what the banks will not tell you about themselves so you can benefit from their advice.
A good broker can provide you with your borrowing power for each of the lenders that they use, typically they will use software that has a mortgage calculator for each of the lenders. In this way, you can determine which banks will lend you the amount that you want and which banks will not.
A good broker will provide better service than what you get going direct to the bank and being pushed through the bank’s process.
Good brokers can have power in the bank system as the bank will not want to lose other deals by letting down the broker. If you are a single customer they are not as concerned as if they let down a broker who can send them lots of customers.
The loans do not cost any more if you use a mortgage broker.
Mortgage brokers provide free service most of the time.
The shocking truth about using a mortgage broker vs going direct to the bank or lender is…. By going direct to a bank, borrowers are cutting down their options to a small fraction of what they could have using a mortgage broker! Just based on probability, you are probably missing out on the loan that best meets your needs.
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