Advice Market Blog

I’m about to get refinanced – why use a mortgage advisor instead of going straight to the bank?

July 25, 2016


For many first time borrowers, and even those who have dealt with their banks directly before, the role of mortgage advisor can seem unnecessary. After all if you have an existing bank and know the lending manager it’s just as easily to ask them directly, right?

Although visiting your existing bank may seem the simplest solution it will seldom provide you with the best deal. Choosing the wrong lending option can cost you thousands of additional dollars over the life of the loan. When it comes to borrowing it definitely pays to shop around.


Using a home loan advisor can provide you with numerous benefits that make the decision a lot easier for you. Here’s eight great reasons why you should deal with a mortgage advisor when you secure your next home loan:

  1. You don’t pay for their services. That’s right, mortgage advisors don’t cost you anything. They receive their fees from the lender who they deal with. Their fees are normally paid as a trailing commissions which they receive over an extended period of the loan.
  2. 2. They are Impartial. A good mortgage advisor will act in your best interests, choosing from a wide range of mortgages that are right for you. Unlike the banks, who obviously have a vested interest in selling you their mortgage product, the advisor does not gain profit from your mortgage. They do however receive fees for their services from the lender so it is important that they disclose this to you and that their recommendations are not based on the size of the fees they receive.
  3. They understand the market. Dealing with mortgages on a daily basis puts them in a unique position of recognising a good deal from a bad one. They are familiar with current interest rates and the fees that the banks charge. They are also in the best position to know whether a deal is good for you and which mortgage will be your ideal solution.
  4. They will save you time. Organising a mortgage is a time consuming process. There are lots of options to evaluate and a huge amount of paperwork that needs to be digested. A home loan advisor will take all this workload away from you, alleviating the stress.
  5. They have existing relationships with the banks. As they work with the banks on an ongoing basis they already have relationships in place with the people who make the decisions at each bank. They can open doors to financing options that might otherwise be difficult to access.
  6. They can assess your affordability. Thanks to their experience a good mortgage advisor is able to assess your mortgage requirements and what you can potentially afford. They are able to advise you what is within your means and where they feel you may be overextending.
  7. They will increase your chances of approval. They also know each banks expectations and know what is required to get your approval in place. They can make sure you complete your paperwork properly and have everything in place to increase your chances of being successful.
  8. They can save you money. An experienced mortgage advisor knows a good deal from a poor one. They can tell the true cost of your mortgage, not only the interest rate but ongoing fees and costs and how the terms and conditions can affect your obligations.

There is little doubt that a good mortgage advisor can bring so much to the table in helping you get your finance approved. It’s important you choose a good mortgage advisor who has experience, a good reputation, has the right professional qualifications and deals with a wide range of lenders who can meet your needs.

The information provided is intended as a guide only and does not take into consideration your personal situation, needs and objectives and should not be considered as advice of any nature.

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By AdviceMarketeditor