Its not all about the Rate

It’s not all about the Rate

Despite the curent focus on our main page upon the speed with which banks are passing on interest rate cuts, it’s important to understand there is more to a home loan than simply getting the best interest rate.

It is too often the case we are lured towards one lender over another with the promise of a cheaper rate. After all, all we want is the home or investment property we are looking at, and the mortgage is the same at every lender except for price, isn’t it?

The reality is very different. Each lender will lend you a different amount based on your income; each lender will take a slightly different approach to upfront and ongoing fees. One lender may be more innovative in combining the better loan features into new products which are updated constantly, while other lenders will rely on the same product they have been selling for years and years.

Some lenders will treat your loan process like an under-staffed government department: where each stage in the process is not responsible for any other and when there is any delay or issue you hear ‘that’s not my department…’. This is clearly not what you want when you are on a tight deadline to sign a contract or settle on your purchase.

It may be the case that you find a lender with a better rate, or even the best rate in the market compared with your current lender, and then you also might find they offer the features, benefits and service you prefer over all others. However very often this is not the case.

By combining professional expertise with access to many different lenders and hundreds of home loan products, a mortgage broker or adviser provides you with an efficient and cost-effective method of reviewing, negotiating and organising your home loan options.

Can a broker help me negotiate with my own bank or lender? Definitely..

It may be better to have someone else negotiate for you if you aren’t comfortable negotiating yourself. In any case your mortgage broker is also armed with the knowledge of all your lender’s competitor offerings. This is a distinct advantage since the lender knows the broker’s job is to arrange for you the best rate and overall deal they can. It is entirely possible that a broker can help you get a better deal, even with your current lender.