Walk into a single bank and you see only its own mortgages. A broker sees across the market, comparing deals from many lenders to find one that fits you. For buyers daunted by the choice, or those with a less straightforward profile, a good broker can be worth every penny.
Searching the whole market
A broker's chief value is breadth. Rather than checking one lender's range, they scan dozens, including some that deal only through intermediaries and never advertise to the public. If your circumstances are unusual, say you are self-employed or have a patchy credit history, a broker knows which lenders are likely to say yes.
Doing the legwork
Beyond finding a deal, a broker handles much of the paperwork, packages your application to give it the best chance, and chases the lender through to offer. They know what each lender wants to see and how to present it, which can mean the difference between a smooth approval and a frustrating refusal.
- Access to deals not sold directly to the public
- Expertise in matching lenders to tricky circumstances
- Admin handled, from application to mortgage offer
How they are paid
Brokers earn money in two ways: a fee charged to you, a commission from the lender, or sometimes both. Always ask which applies and how much before you commit. Some brokers are fee-free because the lender pays them, while others charge a flat fee for their advice. Neither is wrong, but you should know the arrangement.
When to use one
If your finances are simple and you are confident comparing deals, you may do well going direct. If you are short on time, unsure where to start, or have a complicated profile, a broker can save you stress and quite possibly money. Choose one who is whole-of-market rather than tied to a handful of lenders.