Read This Before You Let the Banks Fool You!

A mortgage broker specialises in tailoring the investment-related solutions for borrowers. By going to a bank directly for borrowing a loan, you put yourself into paying huge borrowing fees and long never-ending procedures along with high interest rates. A mortgage broker, on the other hand will handle your borrowing procedure and guide you throughout while also using tools like Borrowing Power Calculator.

Read below to know why you should rather move to a Business Loan broker and not let the banks fool you into loan borrowing-

* Banks don’t advertise the interest rates that they offer on the loan borrowed. This makes it difficult for you to compare the interest rates with other banks or lenders, hence you won’t know if you could get a better deal somewhere else.

* While borrowing from a bank directly, you will be directed to different departments and long procedures. Bank managers are ultimately measured on their budget and their return on equity. This shows that managers focus on the bank’s profits, and not the benefit of their customers.

* Banks may also over charge you on the interest rate, if your financial situation is not entirely in your favour and later use it as an excuse to charge extra.

* Banks won’t let you have an idea what its competitors can offer. Taking advantage of this, they charge you as much as they can.

* Banks would notice if you have a loyal customer since a long time and in such cases, banks wouldn’t offer you many options considering that it would be unlikely for you to leave them.

* Business loans are governed by the National Consumer Credit Protection Act 2001 (NCCP Act) which implies that banks don’t have strict lending policies.

Commercial lenders look at business applications like a return on their investment and not the other way round. Mortgage broker helps you make the application process simpler and will negotiate strongly on your behalf. You may get in touch with the lending experts from Your Finance Adviser and understand how a Mortgage broker will be able to help you in your loan application process over a bank. Some of the benefits are listed below-

* Property buyers want to someone to handle their property paperwork without any hustle. Brokers make their application process easier and beneficial.

* Brokers devote dedicated time to their customers, thereby solving all their investment related needs.

* Since brokers are experienced in their jobs, they are aware of the current interest rates in the market. Brokers have strong ties with the relationship managers at several lenders.

* Brokers also have a very strong negotiation power so they help you bargain on the interest rate whilst saving your expenses.

* They may also help you gain an estimate of how much loan you can afford by using tools like Borrowing Power Calculator.

However, you must check that -

* Your Mortgage broker has Certificate IV in Finance and Mortgage Broking

* The broker should be an active member of the Mortgage and Finance Association or the Finance Broker Association of Australia.

* Look for a mortgage broker that is “accredited” and is able to write loans with a wide range of banks, second-tier lenders and customer-owned banks.

It is advised that you focus on working with a Business Loan broker that gives you a better chance of getting your loan approved for a “well-priced” loan that suits all your needs.