Sam: Are you thinking of getting a home loan or maybe refinancing an existing loan?
In this video, we'll go through the three main differences of using a mortgage broker
or online platform versus going directly to a bank.
We'll talk through why banks don't reward loyalty and how online platforms are designed
to do the hard work for you offering you more choice and convenience.
Sam: Hey guys, it's Sam.
Here at Lendi we've helped thousands of Australians refinance or get a new home loan and we know
that almost 60% of Australians get their home loan via a third party.
That means they use a mortgage broker or online platform like Lendi to find the right loan
for them.
Now before we start if you're interested in getting home loan tips in Australia make sure
you subscribe to our channel and hit the bell so you can get notified when we post new videos.
Sam: So what are the differences between using a mortgage broker or online platform versus
going directly to a bank?
The first is more choice.
When you use an online home loan platform or mortgage broker you have access to a much
wider range of products.
For instance, Lendi compares over 2,000 options from over 35 different lenders.
If you go directly through a bank you'll only see a handful of the products that that bank
offers.
Third parties are also not tied to a particular bank or lender and must offer a product that
best suits the customer's needs.
Their role is to help you understand and compare all of the options available.
Sam: The second is more choice, which ultimately means you can make more educated decisions
which would hopefully mean more savings in your pocket.
The more loans that you can compare and understand the more chance you can find the needle in
the haystack and find the best product that meets your needs.
If you go directly to a bank you are significantly limiting the amount of options that will be
offered to you which could mean you end up with a product that doesn't have all of the
features that meets your needs.
Third parties could also have access to special offers and products such as cash back as well
as discretionary pricing on different rates.
On occasion they can also offer a significant reduction in fees.
Sam: The third factor is convenience.
Home loan applications require a lot of information and paperwork and using an online platform
can make the entire process a lot more convenient.
If you go directly to a bank you'll often need to take the time out of your day to visit
your local branch.
Although some banks allow you to start your application online you'll often still have
to visit a branch or see someone face to face to provide verification documents such as
income documents or bank statements.
Sam: If you use a mortgage broker or online platform they'll take the hard work out of
the process for you, from finding the right loan that meets your needs to submitting and
settling the loan application for you.
They'll take the stress out of the entire process.
If you use an online platform such as Lendi this goes one step further.
You can add all the information online as well as compare all products and upload all
documents so you never have to visit a branch or actually see someone face to face.
Online home loan platforms like Lendi also offer around the clock support from Home Loan Specialists
that can answer any questions you have.
You can keep track of where your application is up to 24/7 using the online platform, so
there's no need to chase up the bank to find out where your application is up to.
Sam: A common question that gets asked is do you have to pay for using the service of
a mortgage broker?
The answer is no.
The service is free and there are no hidden costs.
The mortgage broker will get paid by the bank when your loan settles and none of this cost
is passed onto you.
Sam: When does your broker relationship end?
Many homeowners use the same broker over and over again for future refinances, other property
purchases, or upgrades.
A good broker will stay in touch with you every six to twelve months to make sure you're
still on the best product and the product that you're on still meets your needs and
objectives.
Sam: That's it, the difference between using a mortgage broker or online platform versus
going directly to a bank.
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you have in the comments section below.
If you're looking for more tips you can also join our private Facebook group Home Loan
Hacks Australia where we'll answer all questions home loans.
If you're also wanting information on other relevant home loan topics you can check out
our other videos here or here.