06 Dec A Point-bank Explanation: Broker VS Big Bank for Your Finance Choices
Whether you’re looking for that perfect next place to call home or interested in purchasing an investment property, searching for the right loan for your situation can be a time-consuming and complicated head spin if you don’t have someone by your side to keep the process simple and efficient.
Often times, when you’re faced with the pressure of choosing the right a loan, it can be difficult to decide whether to engage with a broker prior to making a decision, search online for financial and loan advice, or head straight to the big boys themselves – your bank.
Before identifying which option is best for you, let’s go back to basics and clarify what each of these terms mean:
A bank is a financial institution licensed to receive deposits and make loans. A banker can only recommend loans that their institution is currently offering.
A broker, on the other hand, has access to a large number of financial lending institutions and banks. They are professionals who help you determine the extent of your loan requirements, how much you can borrow, and how much you can actually afford. Aside from this, a broker is essentially your personal loan specialist with the right industry contacts and experience. They will seek out all the lending options available to ensure you find the one best suited to you.
The most straightforward approach may seem to go directly to the financial institution that you have always managed your funds with – your existing bank. However, more often that not, this does not provide the best financial outcome. Reason being, “you don’t know what you don’t know”, and only a broker working in your best interests will reveal the options available. Alternatively, you may find yourself having to undertake extensive research, visiting numerous bank branches and bankers, and sieving through countless paperwork before you reach your decision.
Some people are reluctant to seek the help of a broker due to fear of hidden costs (that don’t exist), only to realise they could have saved money if they had chosen to engage with a broker. The advice a broker will offer you will be tailored to you and in your best interest.
A broker will:
- Do the tedious research for you
- Save you time and effort that could be better spent elsewhere.
- Guide you through the loan process with ease and understanding.
If you would like to learn more or discuss whether a broker might be a good choice for you, you can contact our friendly and reliable team by sending us a message here. We believe loan products should be easy to understand, easy to access and allow you peace of mind.