Choosing Between a Mortgage Broker and a Bank

Banks are everywhere.. Why not go straight to a bank?

Of course, you can go to a bank, but this can be more difficult than it sounds. Australia is indeed the lucky country.  We are blessed for choice when it comes to the amount of competition that exists across the mortgage market.  With so many lenders, and so many products under each of their brands, it’s so important you make the most of this when it comes to such a critical decision as to who and what you choose when it comes to your home loan.

Firstly, which one do you choose? Which of their products is right for you? And what about other lenders, building societies and credit unions?

There are a lot of options out there and, with regularly moving interest rates and new products, it’s an ever-changing market.

That’s why a broker makes sense. We do this every day. Knowing the lenders and their products, keep up-to-date with changes when it comes to lender policies, products and their different lending appetites. And, help choose what’s right for you.

Banks enjoy working with brokers, as we do a lot of the banks’ work for them and making their jobs much easier and may help speed up the application process and get you the top-notch customer service you deserve.

In the simplest terms, having a broker in your corner makes finding the right loan easier and can save you time and, hopefully, money.

Have us on your side as your mortgage broker.

When it comes to refinancing, you need to know exactly what is out there in the market to know what your options are.

That’s where a mortgage broker like us can help. We deal with lenders and evaluate loan rates and features day in and day out, it’s what we do, and what we do well. We understand the current market and can offer a wealth of information and expertise for you to draw on. Not only will we help you find the right loan, we’ll aim to make the whole application and approval process much easier.

The first thing we will do is catch up and chat about your current loan and circumstances, and find out what your needs and goals are and how they may have changed since you took out your loan.

We can then give you an accurate idea of your current costs; identify any potential savings from rates, fees or features; and re-evaluate your borrowing potential. From here we can then help find the loan for you.

There are literally hundreds of different loan products for you to choose from. It’s just a matter of helping you find the right one.

As your broker, we will look for a loan that suits you and your circumstances. With access to multiple lenders and an array of different loan products, we stay up-to-date with the changes within the market and new products from the lenders as they come online.

Once we’ve identified a loan that works for you, we take care of the application process on your behalf.

What’s changed in your life?

As a mortgage broker, we’re very good at letting you know what’s changed in the market.

But when you’re looking at refinancing, it’s just as important for you to walk us through what’s changed in your life, as this can be the deciding factor in what type of loan you refinance into.

Firstly, your income may have changed. Hopefully it’s gone up, but it may have dropped. Your bank balance could have changed significantly thanks to an investment, business interest or an inheritance.

You could have had a change in your relationship status. You may be planning on starting a family or maybe you or your partner have already made a change to working arrangements to have or look after a baby. Your living expenses may have increased, or you may have taken out other loans or credit cards.

It’s also very important to know the change in value of your property since you took out your current loan. All of these factors will influence your new borrowing potential.

What mortgage type suits you now?

There’s a lot more to refinancing loans than just finding more attractive rates and fees.

Obviously, a low rate is important but it’s not everything. Your new loan may be a different type to your current one and even offer features that will make managing your mortgage easier. We can take the time to show and advise you on the differences of each to help you make an informed decision.

There are many subtle differences between each lender’s loans, but here is a basic rundown on the type of loans you could consider.

  1. Variable: The interest rates go up and down depending on the official cash rate, market conditions and each individual lender’s decisioning. When the rate goes down, so do your minimum repayments. But when the rate goes up your payments will too.
  2. Fixed: One to five years fixation on interest rate. Even if rates change, your repayments stay the same. This helps manage your household budget by knowing exactly what you’ll have to pay.
  3. Split Rate: One part is variable; the other is fixed. This lets you enjoy the benefits of an interest rate drop but also protects you from being affected fully if they rise.
  4. Interest Only: You only pay the interest on your loan but do not repay the principal loan amount. Your repayments are less but you still have the same level of debt at the end of the interest only period.
  5. Line of Credit: You can pay into and withdraw from this account if you keep up with the required repayments. You can have your income paid into this account to help pay off the mortgage sooner, but interest rates are usually higher.
  6. Honeymoon Periods: Usually designed for first homebuyers, lenders will make switching more attractive by offering a lower interest rate for the first six to 12 months, and then the rate returns to the standard variable rate.
  7. Low Doc: Most popular with self-employed people as they need less documentation or proof of income. However, they usually have a higher rate of interest or need a larger deposit, or both.

                               “We’re here to help

                                       make it easier.

If there’s something you don’t understand or need more of an explanation, please just pick up the phone or email today.


Get in touch with us. 

Phone:    02 4732 3844

Shop location:

Suite 7/ 488 High Street Penrith NSW 2750

ABN: 84 099 969 641

Australian Credit Licence: 385490                                                    

Judge Lending is a trading name of The Australian Loan Pty Ltd