Tags: Home Loan Information Provider, Home Loans, Comparison, LendersVariable / Fixed | 28.08.18

What is the difference between a bank, direct lender and mortgage broker?

You are searching for the perfect home loan but do not know whether to go with a bank, direct lender or mortgage broker. Understanding the difference between them can mean big financial advantages.

A mortgage broker acts as a liaison between home buyers and banks. They evaluate your current financial situation rather than relying on strict criteria and have established relationships with various lenders. They aim to match your needs with the range of options available to them through their network of lenders. This cuts your research down, gives you more options and if you are self-employed, cannot prove income or have been turned down for a loan in the past they are more likely to be able to help. They earn a commission from the lender when a loan is taken out.

Direct lenders are generally companies underwriting loans. They have a large line of credit with another financial institution, allowing them to loan you money. Practically, there is no real difference between them and any other mortgage provider.

Banks generally lend their own money and make profit from fees and interest charged to clients. Bank loans are generally straightforward when you have good credit history, steady income and low debt. You may also have ‘credit’ if you are already a customer of that bank.

Tomorrow Finance can give you a head start to find the best bank loan that suits your circumstances, whether you are a first home buyer or property investment specialist. We have teamed up with Australia’s biggest banks to offer you this home loan special offer today: http://www.tomorrowfinance.com.au/special-offer/.

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