Life Admin Hub  ›  Home Loans  ›  Benefits of using a Mortgage Broker vs Mortgage Lender

Benefits of using a Mortgage Broker vs Mortgage Lender

Selecting the right home loan and mortgage lender can be a difficult process for many Australians. That is why many turn to mortgage brokers to make the process easier.

If you are looking for a lender to purchase or refinance a property, this blog is for you. In this article, we will cover the differences between a mortgage lender and a mortgage broker, and four key benefits of using a mortgage broker versus going directly to a lender.

Difference Between a Mortgage Lender and Mortgage Broker

What is a mortgage lender?

Mortgage lenders are financial institutions like banks that lend money to people to buy property. If you are looking to purchase a new home or refinance your existing mortgage, mortgage lenders will provide you with money and they will charge you interest for providing you a loan.

There are a variety of different lenders on the market, all with different terms and conditions that can help borrowers in different situations. For example, the terms that a lender provides you money will include interest rates, repayment period, and fees. Based on your financial and personal circumstances, certain mortgage products may benefit you more than others.

So how do you find the right mortgage lender?

What is a mortgage broker?

Mortgage brokers are mortgage professionals that act as middlemen between mortgage lenders and you – the borrower.

You might be asking why do you need a mortgage broker when selecting a lender? Also you might wonder how you would pay a mortgage broker?

The easy answer to both those questions is that the bank pays the mortgage broker, who is actually working for your best interest to ensure you get the best deal for your home loan based on your personal financial circumstances.

Four Benefits of Using a Mortgage Broker vs Going Directly to a Lender

Expert advice and access to multiple lenders

A mortgage broker can offer expert advice to ensure the mortgage product being selected aligns with the borrower’s needs. The mortgage broker acts in the best interest of the client so you know the deals that are being presented are the best they have on offer. It’s actually a legal requirement to act in the your best interests over the banks which is great!

Mortgage brokers have access to multiple lenders and a wide range of products. Having access to and knowledge of such a wide range of products means borrowers are more likely to get a deal that fits their individual needs.

Access to exclusive deals and rates

Mortgage brokers have exclusive access to certain mortgage products that are not available to the public. This means borrowers have an even wider range of products to choose from. Brokers can help you throughout the mortgage application process, ensuring you are receiving the best deals and rates.

No cost to borrowers

The best part of using a mortgage broker is there is no cost to the borrower. Borrowers don’t need to pay their mortgage broker as brokers are paid a commission from the mortgage lender. Going directly to a mortgage lender can cost more than using a mortgage broker as options are limited and you are less likely to find the right mortgage product for your needs.

Personalised solutions to help borrowers

Mortgage brokers offer a more personalised experience compared to going directly to a lender. Mortgage brokers assess your situation and select the products that are right for you.

For example, you may be self-employed or have a poor credit history. These challenges make it difficult for borrowers to obtain a loan. Mortgage brokers can help you through the following:

  • Find lenders willing to consider your financial situation.
  • Guide you through the application process and the documentation required.
  • Help understand the mortgage products and options available to you, given your financial situation.
  • Offer support throughout your mortgage, ensuring you meet your mortgage payments.

A professional in your corner

Mortgage brokers work with you to understand your personal financial circumstances and help you through the process. For something you might only do a few times in your life, it’s a good idea to have someone in your corner to advise you through the process and deal with the lenders. A mortgage broker is able to manage the whole process end to end for you providing peace of mind throughout.

Looking for a Mortgage Broker?

One Click Life is a mortgage broker that can help you select the right lender to suit your needs. We have a team of qualified mortgage professionals to help you choose the right mortgage commencing with a simple home loan application process. One Click Life can also take care of your Taxes, Will, and Health Insurance, so you can enjoy the more important things in life. One Click Life creates simple financial products for you.