Mortgage Broker vs Bank: Pros, Differences and Everything You Need To Know

Broker vs Bank

When it comes to managing your finances and making important financial decisions, one of the most critical choices you’ll face is whether to work with a broker or a bank. Both options have advantages, and understanding the differences between a broker and a bank can help you make an informed decision that aligns with your financial goals and needs.

Brokers

Brokers act as intermediaries between individuals and financial markets, facilitating the buying and selling of various financial instruments, homes, getting and lending loans, and other securities.  A mortgage broker helps borrowers connect with moneylenders and seeks out the best for the borrower’s financial situation and interest-rate needs. They do the groundwork so a borrower doesn’t have to. They work on behalf of their clients and are typically compensated through commissions or fees based on the transactions they execute. Here are some pros of working with a broker:

  • Access to a Wide Range of Investments: Brokers often provide access to a broader selection of investment options compared to traditional banks. They can offer loans not only from Banks but also from various private investors or loan providers.
  • Expertise and Advice: Brokers are expected to have a deep understanding of financial markets and investment strategies. They can offer personalized investment and loan advice tailored to your goals and risk tolerance.
  • Active Management: A mortgage broker only gets their fees once the loan is closed so rest assured as they’ll actively be working to get the best deal done for you.
  • Convenience: Getting a mortgage is a time-intensive process. A mortgage broker will generally handle the paperwork on your behalf; a skillful mortgage broker will save you time and stress.

Banks

Banks are financial institutions that provide a wide range of services, including savings accounts, checking accounts, loans, and more. They also offer investment services, but their approach differs from that of brokers. Here’s what you can expect when working with a bank:

  • Convenience: Banks are convenient for everyday financial transactions and services. You can have your checking and savings accounts, credit cards, and investment accounts all in one place.
  • Security: Bank deposits are typically insured up to a certain limit by government agencies, providing a high level of security for your savings.
  • Financial Planning Services: Banks often provide financial planning services and offer various investment products, including certificates of deposit (CDs), savings bonds, and managed investment portfolios.
  • Relationship-Based: Banks tend to focus on building long-term relationships with their customers, offering personalized financial advice and guidance.
  • Fees and Costs: While some bank services are free or have low fees, others may have higher charges compared to brokerage services.

Now here’s where Active Mortgage & Finance comes in. Active Mortgage stands for, providing the right advice & guidance with our clients’ best interest always in our minds & hearts. We will listen to your story, take care of your home loan needs, and guide you step by step on your home-buying project putting your best interest first.

What Difference Can We Make?

  • We Listen, Care, and Guide

We listen to you to understand your situation, needs, objectives & goals then guide you step by step throughout the home-buying journey to achieve that goal, keeping your best interest always in our minds & hearts.

  • We provide Lots of Home Loan Deals

We can compare & negotiate hundreds of home loan deals from many lenders, including the big banks. This means you will end up with the right home loan with the most competitive rate that is most suitable for you.

  • We provide our Service for Free.

Getting our service is easy, flexible, and also free. We get paid by the lenders so you can come to our office and find a deal that best suits you.

  • We let you Sit back and Relax

Getting a suitable home loan should be a smooth process for you. We do all the paperwork and running around for you so you can sit back, relax & enjoy your precious time with friends & family.

  • We are Outside the box

We see and think outside the box for your finance solution. We love to help people in difficult situations with complex scenarios. Even when your bank says ‘NO’, we might be able to find the best solution for you.

  • We hold MFAA & CIO membership

As a member of the Mortgage & Finance Association of Australia (MFAA) – and the Australian Financial Complaints Authority (AFCA) – We are bound to uphold the highest standards when providing finance solutions to customers.

Ultimately, the choice between a broker and a bank depends on your financial goals, preferences, and the level of service you require. It’s essential to assess your needs carefully, conduct research, and seek advice from financial professionals if necessary to make an informed decision. Active Mortgage & Finance see all our clients as our best friend, which is reflected in our service model. You will be amazed by our professional service with a friendly & personal touch. Book your appointment today!

CEO, Senior Mortgage Broker

Lekha Gurung

Lekha Gurung is an experienced mortgage broker from Sydney who expert in assisting first-home buyers, property investors, refinancing, etc. He has settled more than 300 loans till now. Our Services include First Home Buyers Loans, Investment Loans, Refinancing, Personal Loans, Business Loans, Reverse Mortgage, Credit Default Loan, Low Docs Loan, assistance in property research, and Insurance referral arrangements.

Additionally, Lekha Gurung offers Free Home Loan Consulting and Home Loan Advice. Recognizing the complexities of the mortgage process, these no-cost, personalized consultations are available for free to everyone. Lekha will provide expert guidance tailored to your financial needs, ensuring you make informed decisions in your property financing journey. Simply fill out a form and pick a date to book your Free Session today!

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Contact Information

Active Mortgage and Finance
Suite 3, 2-6 Hercules Street Ashfield NSW 2131
Phone: 02 9797 9069, 0425 848 409

contact@activemortgage.com.au
www.activemortgage.com.au