Mortgage with broker or direct with bank?

[HattrickNZ]

Getting a mortgage through a broker or directly with the bank. Which is better? All thing being equal which us the better option? is there anything to look out for?

I had to use the motgage broker to get me a better rate than the bank could and they did. But the best the bank could do is match it. Now i am wondering who is best to go with? Tks

[donna]

Wouldn’t you try both? See what your bank can do and also see if there are better offers available - which will likely come from a broker.

cheers

Donna

[jemimafisher]

I've always had more luck with a mortgage broker. Since buying my first house in 2012, I've gone to the same mortgage broker for everything property related. Finding a good mortgage broker is invaluable. While they're known for negotiating better interest rates, mortgage brokers also have a wealth of market knowledge and can offer sound advice on all things property.

[samsinclair]

Our last experience - the Mortgage broker got more lending than we needed but from non mainstream lenders (banks). Which looked like they wanted us to cover their costs. We managed to avoid that by pursuing the bank directly.

[donna]

^^ I've found brokers struggle to get a better deal than you can from your existing lender - I reckon this is due to the bank's keenness to cut the broker off from further commission.

Investors actively buying, FHBs and homeowners with large loan amounts are brokers' target clients.

cheers,

Donna

[HattrickNZ]

Wouldn’t you try both? See what your bank can do and also see if there are better offers available - which will likely come from a broker.

cheers

Donna

I did try both and the broker gave me the best offer, and the the banks best counter was to match it, so I have gone with the broker.
Just don't get why the bank did not just beat the brokers offer?
And how the broker can give me the better offer in the first place? Interesting.

[Perry]

I have heard that banks sometimes run specials through brokers. Might be that, perhaps?

[donna]

HattrickNZ did the bank know you were using a broker? If not then do you think they were trying to get you to agree to a higher interest rate? - This is my guess. Good on you for going with the broker and the bank has to pay them.

cheers

Donna

[HattrickNZ]

I did tell the bank to see if the bank could better the offer, but they wouldn't. Don't think the bank was trying to get me on higher rate, just that they were not going to go lower unless I could get it elsewhere. But they still would not beat broker, which i find strange.