Recently I passed on the details of a finance broker to a potential buyer. They said to me how they didn’t need it as they were going through their bank and they didn’t want to spend money on getting a broker.

That got me thinking, if one person has that view, maybe others do as well. So with the assistance of one of the local brokers, we put together this info sheet. It shows you the benefit of getting a finance broker to help you out.

Firstly, it’s free – This is the biggest misconception. Finance brokers do not charge for their service, they get paid by the banks on a per loan basis.

The easiest way to sum it up is ‘Would your bank tell you if a competitor had a better rate? – A broker does.’

It will make your life easier - Brokers do all the hard work for you. They shop around to find the right loan based on your individual situation. Everyone knows shopping around could lead to a better deal but it’s time consuming, especially if it involves contacting lots of banks and lenders

Government payments – Brokers know what payments you are entitled to and are able to help you with getting them. For example, if you are a first home buyer, they will help to ensure you get the first home buyers grant.

It’s quick – They are able to compare hundreds of home loans in just minutes. For example, with Aussie finance brokers, they have Mortgage Explorer software. It helps the broker find the right product for everyone’s unique needs. They then help you through the process from lodgement to settlement.

Comprehensive – Compare thousands of products from different lenders in minutes

Professional – As with any industry, there are good and bad eggs. Always look for a fully trained and accredited broker. Use a broker that is accredited with the Mortgage & Finance Association of Australia (MFAA). It’s best to use one that you have had referred to you from someone that you trust. Ask if they have used them personally and what was the experience like.

Best Rate – Lenders update finance brokers on a daily basis with their latest offers. This way they can find you a deal that you might not get if you went directly to the lender yourself.

While speaking with Tom from Aussie Kenmore (AussieTom) he made some really good points. “Lending criteria has tightened due to the aftermath of the Global Financial Crisis. Banks are rejecting customers for sometimes minor issues that I could have helped them get around”. He also pointed out that “All banks have different guidelines, and unless you’re familiar with them you can find yourself not getting a loan – just because you haven’t crossed a ‘t’ or dotted an ‘i’.”

So in summary it was worthwhile establishing a relationship with a mortgage broker, as they will be with you for years. As your financial circumstances evolve over time, so do the products and services banks offer. A broker can help with stay ahead of the 8 ball. Forging a relationship with a mortgage broker can make all of those decisions much easier along with saving you time, money and stress.