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Is It Better To Get A Mortgage Through A Bank Or Broker?

Mortgage Broker Or Bank

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When you’re shopping for a home loan, you have two main sources for financing; a bank or a mortgage broker. Choosing between a bank or mortgage broker is circumstantial for each person, one may be more suitable than the other.

To help you get a loan for your dream home, should you choose a bank or a mortgage broker? It’s a valid question, given how long the application process for a mortgage can be. Depending on your personal circumstances, for example; whether you are a first home buyer or refinancing, you will need to understand your offers and submit an application to obtain the finances you require.

Choosing between working with a bank directly or with a mortgage broker in Melbourne depends on factors such as:

  • The strength of your current banking relationship
  • Your need for flexibility in a lender
  • Recommendations and referrals
  • Who has the loan options you want

Each option comes with positives and negatives. Below, you can find more information, so you are able to make an informed decision on whether to work with a bank directly or with a mortgage broker.

How do Bank Mortgages Work?

Obtaining a mortgage from your bank is a simple process, especially if you have strong credit, income and assets. In the process, you will complete a loan application, then meet with the bank’s loan officer and then finally, review your available options. The selected bank may have excellent choices for you, and getting a mortgage through your own financial institution may qualify you for relationship perks.

man considers getting a mortgage from the bank

However, that being said, working with just one bank limits your options. Another bank may offer a better deal that’s more suitable for your situation, but you will not be aware of other options if you are limited to speaking to one bank. 

This could be vital, for example; if your credit score qualifies you for a better rate at one bank over another. Even a small difference in your interest rate can cost up to thousands of dollars over the span of a 20 year mortgage.

Doing your own personal research is important. Familiarise yourself with mortgage qualifications and consider the relevant factors which will affect your loan approval, fees and rates. Explore ongoing interest rates and see how your bank’s rates compare. When you have the resources, you will have an idea of whether or not you are receiving substantial offers from a bank.

If you are uncertain about offers, you can always research other lenders or enlist the help of a mortgage broker to ensure you have the best offer before you sign.

How do Mortgage Brokers Work?

When you are looking for a home loan in Melbourne, a mortgage broker acts as a middleman between you (the client) and lenders. Most mortgage brokers work with various lenders, not just limited to banks, helping you gain access to a wider range of loan choices. 

If your credit score is satisfactory, you are currently self-employed or you have special circumstances; a mortgage broker offers you the flexibility to assist you to find the best fit.

Working with a great mortgage broker is similar to working with a great real estate agent. They will get you results you will not easily achieve on your own. After all, mortgages have a lot of complex parts: interest rates, financial jargon, down payments and more. A mortgage broker in Melbourne will help you understand how all of these variables work together and what makes one loan more suitable than the other.

young couple discusses deal with mortgage broker

However, be cautious that some mortgage brokers receive commissions from specific lenders. Having said that, they may have an incentive to direct you toward a specific lender over another, without considering what is best for your personal financial needs and goals. 

Some mortgage brokers will also charge you fees, but an experienced broker will be upfront with both loan options, and always provide you with transparent information.

To help guarantee your mortgage broker is suitable for your personal situation, consider the following;

Get a referral. Recommendations from family, friends or a trusted real estate agent can help you find a trustworthy mortgage broker.

Ask about fees upfront. Ask the mortgage broker how they are being compensated and if you will have to pay fees for their services

Work with an independent broker. This ensures that they don’t have preferred lenders who may not offer the best rates for you. Independent mortgage brokers like What If We Finance are only committed to ensuring you find an unbeatable deal.

Mortgage Broker vs. Bank: Which One Should You Choose?

In general, if your loan is a straightforward transaction, you may be able to save money and time with a bank. If you are in a complex situation, a Melbourne mortgage broker will know which lenders are most flexible to suit your needs and goals. They also know which lenders are lenient on credit and will likely approve your application.

Although, many mortgage brokers in Melbourne today, including What If We Finance, offer free services and advice. They have the knowledge, experience and ability to help you find an unbeatable deal quickly and efficiently.

For more information and enquiries, don’t hesitate to contact What If We Finance today. We hold our own Credit Licence with ASIC and accreditation with the Mortgage Finance Association of Australia (MFAA). 

We are available 7 days a week and can meet at your office or a place convenient to you. We can also meet in our Melbourne CBD office during business hours.

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176 reviews on
Matthew B
Matthew B
2022-06-05
Looking at the reviews for What If We Finance, it comes at no surprise to see so many 5-stars. Spiro handled the mortgage part of my girlfriend and I purchasing our first home. He made himself available to us around the clock and ensured that we were across the entire process and felt as comfortable as possible. We're very fortunate to have gone about buying our first home with Sprio and we'd be more than happy to use him for future purchases and to refer on to family and friends. A big shout out to Agnes also who busily works away in the background and also does an incredible job. You guys are the best!
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hari gowtham
hari gowtham
2022-06-03
Very happy with the results from Spiro from start to finish. Spiro and his team are very knowledgeable and have a very quick turnaround time. Couldn't be more happier with the service. Definitely my go-to person for upcoming purchase.
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Gary Shekhter
Gary Shekhter
2022-06-02
Great broker and trustworthy. Honestly had seen 5 brokers and fund this wonderful guy. Who helped from start to finish fast and had our loan in no time at all. Thank you again champ you did an amazing job
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Leonie Kemp
Leonie Kemp
2022-05-29
Thank you Spiro and Agnes for helping with the purchase of my first home. I needed to arrange finance quickly and Spiro did a fantastic job letting me know the best options for me and pushing to get the pre-approval so I didn't miss out on purchasing my home. Everything went very smoothly, thanks for helping make my first property purchase straightforward.
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S S
S S
2022-05-28
Thank you Spiro and team for your help in financing the mortgage for the recent property purchase. Spiro provided timely advise, guided me on the process and was swift in processing the documents. His friendly attitude makes the process even better. Thank you once again.
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Anita Naughton
Anita Naughton
2022-05-27
As a first home buyer I had very limited knowledge on what I needed to do. I searched for a broker and What if we finance stood out due to reviews. I had my first session with Spiro and never looked back! The whole process was seamless, I felt supported and could always connect with Spiro when needed. Spiro and Agnes are experts in what they do and I would highly recommended anyone looking for finance to choose What if we finance. I will be a lifelong customer and look forward to buying our next house with their support.
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Mahmoud Al Kilzi
Mahmoud Al Kilzi
2022-05-25
Spiro & his team did a great job by getting my loan sorted in time. I would recommend them to family & friend. Great work guys much appreciated.
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Rebecca Zeeman
Rebecca Zeeman
2022-05-20
Spiro and Agnes provided great help and advocacy in getting us our home loan. We felt they were always available and were super efficient in getting it all done on time! The process was so simple and without stress thanks them both.
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Irish Azcuna
Irish Azcuna
2022-05-09
I can’t thank Spiro and Agnes enough for making my first home purchase so efficient, stress-free and seamless! If I could give more than 5 stars I would. As a first home buyer applying for one or the government’s schemes, my situation would have been so complicated that I never imagined being able to complete the process in such a short time. Spiro’s in-depth knowledge, invaluable and always-available support, and genuine willingness to help get me the right mortgage for my situation, made everything possible. His pragmatic advice even helped me decide on the right property for us, which would help us achieve our long-term goals. I highly recommend Spiro and his team. We will definitely engage their service again for our next property. They are the best!
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Renee Briggs
Renee Briggs
2022-05-02
Spiro is reliable, has your best interest as his top priority and is fast to get great results. We wouldn't ask anyone else for their professional opinion- Spiro is the best in the business.
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