4 differences between a broker and a bank lender

By February 6, 2019Broker

It’s easy to walk into the local bank and talk to a lender, or apply online for a home loan, but it may not always be the right option.

1. Choice

When you’re buying a house, do you go to one real estate agent, decide you will buy a house from them, and choose from what they have on the market? Do you make the best of what may actually be a poor fit for your circumstances (it’s okay, one of the kids can sleep in that fourth bathroom we don’t need)? No? Of course not – why would you limit your choices in this way?

It’s really no different with the loan you use to pay for that home. Every lender, including the big four banks, second-tier lenders and specialist lenders, offer different products with different features, some of which will suit your goals and lifestyle, and some of which will not.

2. Industry expertise

The team at SFE Loans will use their expert industry knowledge to help you sort through your loan choices and, unlike a bank lender, can find the one that most closely fits your needs.

You can expect, when it is time to make a decision and settle on one, that SFE Loans will offer two or three alternatives that would all be suitable, with a recommendation for one in particular that stands out.

3. The MFAA difference

MFAA Approved Credit Advisers, such as SFE Loans, must meet higher education and professional development standards than industry regulation currently demands. They regularly attend training and development courses run by the MFAA and others.

SFE Loans are also answerable to the MFAA Tribunal, which imposes penalties on members who are found to have breached the MFAA’s Code of Practice.

SFE Loans not only have the support and resources to be the best, their livelihoods depend on it.

4. Let’s talk commission

Of course, mortgage brokers earn commissions. This doesn’t mean SFE Loans is not on your side. Whether you see a SFE Loans or a bank lender, that person in front of you earns money by selling you a home loan. The difference, then? The bank lender is there to sell you one of their loans. SFE Loans is there to help you locate a product from a choice of lenders that works for you, strategise for the correct personal structure and create a relationship so that when you’re thinking about refinancing you don’t need to look elsewhere. We also want you to be comfortable recommending us to your friends and family. We’ve had relationships with some clients for over 15 years!

When it comes to loans, you can be sure the team at SFE Loans are in your corner. Chat to our team about your finances today!

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