I was recently asked by a prospective customer why they should use a mortgage broker rather than going direct to the bank. Here are 15 reasons WHY:

1. Availability
   • Being self-employed, I don’t work bank hours. Within reason, I make myself available as required after hours to suit clients needs
   • I do what it takes to meet deadlines, where possible
2. Credibility
   • In addition to relevant mortgage broking qualifications, I am a Chartered Accountant. I have also completed a range of other post graduate qualifications in finance and real estate
   • Prior to establishing my own mortgage and finance broking business, I was a director with Ferrier Hodgson in Corporate Recovery, Corporate Advisory and Real Estate Advisory and am acutely aware of what can go wrong when people take on too much debt
3. Choice
   • I have access to over 30 residential lenders who all have different products / services
   • By going direct to a bank you are limited to the product(s) or service(s) they are selling which may not be the best fit for your circumstances
   • There is a lack of trust in the banks because they act in their best interests, (as they should), not necessarily yours
4. Price
   • I have access to the lowest interest rates in the market
   • The commission that a bank pays to a broker does not affect the interest rate you pay
5. Time
   • By using a broker, you outsource the time spent investigating the most suitable loans for your personal situation
   • Its my job to cut through the complexities of the various loan products and present optimum solutions to you
   • As I am paid by the lender, once the loan has settled the expert advice you receive is generally free (unless otherwise agreed upfront)
6. Approval risk
   • Understanding each lenders policies and processes means there is a reduced risk of your loan being rejected by a lender
   • Having direct access to decision makers within the banks, means I can run complex scenarios past the lender(s) before submission, to gauge their appetite for the proposed transaction
   • Declined applications may impact your credit score
7. Agility and convenience
   • By using me, you provide all of your personal and financial information to me, upfront. In the unfortunate circumstance where a loan is declined by one lender, I already have all of the information at hand to submit the deal to another lender
   • In a few years time, you may be looking to upgrade your home or refinance your existing loan. We won’t ask for information we already have on file
8. Upfront valuations
   • I have access to upfront valuations, meaning a valuation can be conducted on a property prior to lodging a formal loan application
   • If required, a new valuation can be requested via an alternate lender to streamline loan approval
9. Hidden costs and LMI
   • Lenders mortgage insurance (“LMI”) is typically payable where the loan to value ratio goes above 80%. But did you know, that banks use different insurers and therefore LMI premiums vary between banks
   • Depending on what industry you are in, some banks offer loans of up to 90% or even 100% LVR without having to pay LMI
   • Other banks may for example, lend up to 85% LVR subject to a higher interest rate, but won’t charge LMI
10. Service
    • I explain the intricacies of different finance options available to you, so you fully understand what you are getting yourself into
    • In addition to being paid an upfront commission, I am paid a trail commission from the lender. This means I am responsible for maintaining a relationship with you
    • I see my role as your private banker. Any finance query you have, you call me and I can consider the full spectrum of products available for you
11. Changing and challenging landscape
    • It is my role to understand different banks lending policies and parameters. This enables me to advise you as to the most suitable loan alternatives. This takes into account different products available, lenders discrete lending policies and your personal financial goals and objectives
    • Banks lending policies and rates are changing day to day. Its my job to stay current with these lending policies so you don’t have too
    • The Royal Commission has uncovered a lot of issues with the finance industry and banks have been updating their policies and processes accordingly. As a result, lending is becoming tougher and this trend is set to continue
12. Technology and innovation
    • Beyond increased regulation and scrutiny, the world is changing, but not everyone can keep up
    • Some banks have fallen behind, whilst others are leading the charge. If technology is important to you, this may impact lender selection
    • The lending landscape will be very different in five years time and its my job to stay current
13. Follow the crowd
    • Whilst I’m not normally a fan of following the crowd, more than 50% of all new residential mortgages are written by brokers. Why? Because surprisingly, more than half the population is smart enough to know that they don’t know everything
    • The most successful people in the world aren’t the smartest. They are the ones who surround themselves with the smartest people
14. Long-term relationship
    • Staff turnover in banks is a common problem, as bankers typically move within the bank as they are promoted, particularly the better ones
    • Not me. This is my business. There is value in both new and existing clients. The upfront and trail commission is paid directly to me. My business is built on repeat business and referrals which comes from quality service
15. All banks are different
    • Hungary Jacks and McDonalds do burgers right? But they are different. They have different ingredients, different processes, different prices and different tastes
    • Whilst all banks might look the same from the outside, their lending policies, pricing and loan structures, means they operate quite differently
    • Whether it’s a whopper or a cheeseburger, its my job to narrow down the burger selection and recommend the best option

At Blambles Finance Group, I bring my professional reputation, deep financial knowledge and integrity to deliver great outcomes for my clients. Contact me to take the next step.