If you are looking to buy a new home, you might only be able to fully fund the purchase by taking out a mortgage (otherwise known as a “home loan” when used to buy a residential property). So, if you already have accounts with a bank that offers home loans, isn’t it obvious that you should turn to your bank for a mortgage?
Yes, there can certainly be advantages to applying for a mortgage via a bank. However, it is not guaranteed that your bank will offer the best deal for your specific needs.
So, if you want to obtain the best possible home loan, is it better to use a mortgage broker or a lender?
Why Not Just Ask Your Existing Bank?
You might be especially tempted to ask your existing bank - at least as a first step - if you have been with your bank for a while. Besides, as the bank will already have a wealth of information about you, they won’t have to request as much supporting documentation, such as ID and bank statements, at the application stage.
However, simply being an existing customer of a bank does not guarantee that they will approve you for a mortgage. In fact, banks can be cautious on this front — especially if their records about you date back quite a few years and show financial behaviour that would essentially be a deal-breaker.
Yes, it might feel unfair to be judged on the basis of financial conduct that does not represent how you manage your money today. Nonetheless, banks can be hesitant about who they lend to — and if your bank does deny you a mortgage, you would have to consider looking for a home loan from elsewhere.
How a Mortgage Broker Can Come to Your Rescue
A mortgage broker is basically an intermediary between borrowers and lenders. A broker can educate itself about your requirements before approaching multiple lenders (not necessarily just banks) on your behalf, in search of the right mortgage for you.
You can save yourself a lot of time by placing your trust in a mortgage broker that already knows, from its own experience, which lenders tend to work with which types of borrowers. This enables you to take a lot of “trial and error” out of the search process.
Overall, then, is it better to use a mortgage broker or a lender? The answer depends on your specific circumstances. However, here at Simpler, we can provide you with impartial advice and help you obtain the home loan you desire. For more information, please call us on 03-366-6846.
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