choosing your home loan: benefits for using mortgage brokers vs banks
13 May 2011
Which home loan you decide to go for will be one of the most important decisions of your life. Fixed rate, variable rates or a mixture of both? Will you ever consider refinancing? Do you have other debts that will potentially need consolidating? Do you plan on eventually buying an investment property and would you consider interest only loans to do so? The list goes on…
Another factor to consider on top of all of these things is the choice you have between a mortgage broker and a bank? Both have their pros and it’s important that you weigh up what’s involved in each…
Home loan guide: Bank vs Broker
PRO - BANKS (these are the little extras Bankwest can offer)
Transaction Accounts You may be able to link your day-to-day bank account to your home loan in the form of an offset account, therefore reducing the interest on your home loan. The balance in the savings account is offset against that owing on the mortgage and over time savings in your transaction account can lower your principle repayment.
Credit Protection Insurance It’s important to consider what would happen if you become ill or are unable to work due to injury, sickness or loss of job. Credit Protection Insurance can help safeguard your future and cover any loan repayments.
Home and Contents Insurance You can save 5% when you combine your home and contents insurance at Bankwest and spread the cost of your premium throughout the year.
Landlord Insurance If you are renting out your investment property, we can also help you with competitive Landlord Insurance. Landlord Insurance provides protection for loss of rent if the tenant defaults on their payments, malicious or intentional damage to your property by tenants or their guests, theft by the tenant or their guests and much more.
Financial Advice It doesn’t matter if you’re a poet, a painter or an office worker, we believe your future should be a happy one. That’s why at Bankwest Financial Advice we have created Happy Futures, giving you access to straightforward, personal financial advice.
PROS – BROKERS
Some banks actually do their business through brokers as they can get the job done efficiently, professionally and quickly, some in as little as 24 hours.
A good broker will know their market well and be able to direct you towards the best possible deal. They are less biased than banks.
A broker is also an expert on all the fees and associated costs and will be able to match you to the type of loan that suits you best.
Often brokers are self-employed and want to create a long lasting relationship with you. You may find that brokers are more accessible than banks.
A personal mortgage broker will be able to trade your mortgage needs between banks and non traditional mortgage providers to negotiate a great low cost deal on your behalf. It’s like bartering with your finances. You can be guaranteed they will get the best deal for you.
For more information on the services that Bankwest offers see our Happier Home Loans guide.
Bank of Western Australia Ltd ABN 22 050 494 454 AFSL 236872 (“Bankwest”), does not issue Credit Protection, Home and Contents and Landlord insurance, which are issued as follows: St Andrew’s Insurance (Australia) Pty Ltd ABN 89 075 044 656, AFSL 239649 and St Andrew’s Life Insurance Pty Ltd ABN 98 105 176 243, AFSL 281731 are the issuers of Credit Protection insurance. Credit Protection insurance is not compulsory and you may take out this insurance with any insurer of your choice. Vero Insurance Ltd. ABN 48 005 297 807 AFSL 230859 is the issuer of Home and Contents and Landlord Insurance. These products are not products of, nor guaranteed by, Bankwest. Any advice given about any product is of a general nature only and is not based on any consideration of your objectives, financial circumstances or needs. For home loan products, lending criteria, fees and charges apply. Terms and conditions apply and are available on request. Offset accounts cannot be opened in company, family trusts or trading names. BW Financial Advisers are Representatives of BW Financial Advice Limited ABN 97 097 084 878, AFSL 230727 (“BW Financial Advice”), which is a related entity of, but not guaranteed by, Bankwest.