Bank vs Mortgage Broker – Which Is The Best When Refinancing?
Are you thinking of refinancing, either with your existing lender or a different lender? It’s a good option if you want a better interest rate, access to flexible loan terms/features, special cashback offers, discounts, or to consolidate your debts.
Should you refinance directly through the lender or enlist a mortgage broker to help? You might be surprised to discover how much difference your choice can make.
Why Choose A Mortgage Broker Over A Bank When Refinancing?
| Refinancing Through A Mortgage Broker | Refinancing With The Bank |
|---|---|
| Serves your best interests. With their network of lenders, they have access to dozens of lenders and their home loan products. | Access only to the bank’s own set of home loan products. Bigger banks have loans for borrowers who qualify, but specialist lenders may have fewer options. |
| Will analyse your credit score and other financial considerations to determine the likelihood of you getting approved for refinancing, especially if you are targeting a new lender. | A credit enquiry goes on your credit file if you enquire, even if you do not get approved. |
| Can help you learn about offset accounts, redraw facilities, and strategies for extra repayments. | Offers products but might not give the guidance you require about which facilities serve your needs. |
| Will show you what refinancing fees you can expect to pay. | Will not take the time to explain fees. |
| Can tell you when a better interest rate is available and will help you decide whether it makes sense for you to change your mortgage product or lender. | Has limited options when it comes to interest rates, and may not be the best available. |
| Can help you stay organise the required documents ahead of time and also tell you how to avoid things that could delay refinancing. | Will expect you to prepare documents and anything else you need on your own. Won’t let you know upfront if there’s anything that could delay refinancing. |
| Will help you determine whether it is a good idea to refinance, given your current financial situation; for instance, if you are on a fixed rate, your mortgage broker might advise you to stick around for a bit to avoid paying break fees. | Doesn’t assess whether a refinancing option is the best for your financial condition; for instance, a bank profits from break fees, so might not tell you how to avoid them. |
| Can explain how consolidating loans through refinancing helps you manage your finances better. | Won’t be concerned with giving you ways to manage your finances. |
| Can show you the perks and pitfalls of going with a fixed or a variable rate. | Decisions about fixed or variable rates are up to you. |
A Free Refinancing Guide Is Just A Few Clicks Away!
Tips & Tricks From Our Experts To Save On Your Mortgage Through Refinancing.
Is It Cheaper To Refinance Without A Broker?
There are no extra fees associated with using a mortgage broker or going directly to a bank to refinance your mortgage. Mortgage brokers get their commission from the banks for introducing loan applications and doing some of the work that one of the bank’s staff members would otherwise complete.
Lenders will not charge you a higher interest rate via a mortgage broker. In fact, mortgage brokers can usually negotiate discounts and better interest rates when you refinance.
Questions To Ask A Mortgage Broker When Refinancing
- Am I eligible for a cashback?
- Is refinancing a good move for me? financial conditions.
- How is the refinancing process going to proceed?
- How much does it cost to refinance?
- How soon can I refinance?
- Should I refinance with my current lender?
- What loan features are available when I refinance?
- I have existing loans, should I refinance to consolidate them?
- Are there any restrictions when I refinance my loan?
- Should I go with a fixed or a variable-rate mortgage?
- Can I put the cashback into my mortgage repayments?
A mortgage broker can help you out with all of the above queries. They know the best cashback offers (up to $4000). You can get facilities like redraw, offset, extra repayments etc., when you refinance. A mortgage broker can guide you on what’s best for you and help you make the crucial decisions.
Why Use A Home Loan Experts Mortgage Broker To Refinance?
When you’re ready to refinance your mortgage, Home Loan Experts has everything you need for help with all aspects of the process:
- We know about the best rates, rebates and turnaround times from the 50-plus lenders on our panel, so we can recommend lenders based on your needs.
- Our expertise will save you time and effort; we’ll shortlist the lenders that are able to approve your loan, so you don’t have to search for yourself.
- We do a pre-assessment before lodging your application, greatly improving your chances of gaining approval and avoiding unsuccessful enquiries, which go onto your credit file.
- We educate you about product options and features available and the pros and cons of each one.
We’re with you even after settlement:
- We’ll monitor your rate and negotiate with the lender if a better deal is available.
- We’ll touch base with you when your fixed rate or interest-only period is about to expire and process an extension if required.
- When your credit report improves, we’ll work with your lender to switch you to a lower rate.
- We’ll assist you in processing construction progress payments. You can view our site here to learn how progress payments work.
- We’ll monitor the value of your property to help you make decisions about moving house or buying an investment property.
- We can make changes to your loan such as fixing the rate or changing the date or frequency of your repayments.
We are your brokers for the life of the loan. If you wish to speak to a Home Loan Experts mortgage broker, please call us on 1300 889 743 or complete our free assessment form.