Broker vs Direct Lender

Person sitting at a desk with a laptop, holding a pen and using a calculator

Navigating Loans  – Borrowing money today is harder and more complex that it was 5 years ago, with lenders being more risk averse than ever. This means now, more than ever, it is so important to get your application right, the first time.

There is a lot more that is taken into account in today’s market. Lenders are able to not only see the past two years of your repayment history across all of your credit facilities – they are also requiring more personal financial information for loan applications. Applications are more detailed, scrutinising all aspects of your spending and saving. This is a good thing – it works to ensure lenders are being responsible. But it also makes applications much more detailed – and there are so many ways to get it wrong. If the information is not provided correctly – the bank will knock back the application. EVERY application you have made shows up on your credit report and affects your credit score. A finance broker can ensure you get the application right before you submit – and you submit your application to the right bank for your situation.

Sometimes it is a matter of picking your mark, by knowing which lender looks at things in certain ways or other things that are non-issues to others. If your finance broker is aware of potential issues before an application is presented to a lender, they can either try to have those things fixed before you submit – or at the very least, try and mitigate the issue.

What Are The Advantages of Using a Finance Broker?

When a customer deals directly with the lender, the bank only needs to consider themselves – and the products they offer – in terms of that customers’ best interests. However, a finance broker has the ability to consider ALL other options on the table that might suit that clients best interest. Put simply, going directly to a bank in the current format of the banking system can potentially leave you at a disadvantage. A bank MUST offer and advise you based ONLY on the products and services that will suit you. The problem here is that while a bank might have a large range of products or offerings (as many do) they only belong to that bank.

Someone to Help You Compare Deals – A finance broker will take the time to sit down with you and show you the differences between the banks and what they’re offering. They will show you the different products to compare and outline how these differences will affect you. And when it’s time to review your loan, they can step in and make sure that the bank is still sharp and delivering great rates and products for you. If you’re currently considering your loan options and wondering whether to engage a broker – give us a call or get in touch via our contact form and we will outline how he can help you.

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