4 Reasons to Choose a Finance Broker Rather Than go Direct to a Bank

If you are in the market for finance there are a number of good reasons why you should choose a finance broker to assist you with obtaining a loan rather than directly approaching a bank. Finance Brokers are trained, licensed professional who will be able to find the loan that best suits your particular circumstances.

The banks spend millions of dollars a year telling us that they are our best friends but when it comes to borrowing money it pays to have someone help you. Large institutions such as banks can be very intimidating.  A finance broker makes this whole process a lot less harrowing. They provide a range of services to make the whole process simpler and the best thing is that their services are free as they are paid by the lender you choose.

So the 4 reasons to arrange your loan through a finance broker rather than going direct to the bank are:

1.       Brokers have access to a large range of loans from a variety of Lenders

If you go direct to a bank the only loan products you will be offered are those that belong to that bank. If you go to a broker they will probably deal with over 30 banks and have access to a huge range of lending products. The broker will be able to take your particular circumstances into account and be able to offer a loan that best suits your needs.

2.       Brokers assist with all the paperwork associated with the loan process

 The loan process can involve a substantial amount of paperwork. There is the loan application to be completed, various types of documentation to be supplied and legal documents to be signed. All of this can be quite a headache. A broker will be able to sort out most of this paperwork for you. They will prepare the loan application, they will collect and collate the necessary documents and they will be able to answer any queries you may have about the loan contracts.   

 3.       Brokers services are free to their customers as they are paid by the lenders

Finance brokers are very cost effective to use as they are paid by which ever bank you choose to go to for a loan. All payments received by the broker from the lender are fully disclosed in the loan contract that you sign from the bank so you are aware of how much the broker is actually paid.

It is important to understand that if you go direct to the bank that payment they would have made to the broker is kept by the bank. It is not paid out to your nor are your loan payments reduced so this means it makes good financial sense to go to a broker.

4.       Your broker will still be able to assist you once the loan has settled.

The final reason to use a broker is that if you require any further assistance after the loan has settled they will be able to help you. The alternative is to go into a bank branch and speak to someone who has no idea of your particular circumstances or to contact the banks call centre where the usual problems of long waiting times, lack of knowledge and poor English skills of the call centre operators can cause you to get very frustrated.

In effect, your finance broker becomes like the bank manager of old and is available to assist you with any further queries you may have. As the broker has their own business they will be around for a longer period of time than a bank employee will and they will be able to provide a range of services in addition to home loans. Most brokers are able to offer such extra services as commercial loans, car loans and a variety of insurance products.

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