Not necessarily — but they may give you access to more options.
A broker cannot guarantee that they will find a lower rate than your bank.
However, if the broker has access to a wider range of lenders, they may be able to compare more mortgage products than you would by approaching one bank alone.
Mortgage rates can change frequently, and the cheapest rate isn’t necessarily the best mortgage for every borrower.
Other factors can include:
- Product fees
- Early Repayment Charges
- Mortgage term
- Overpayment options
- Flexibility
- Eligibility requirements
- Overall cost
What if my bank has already declined me?
A mortgage decline from one bank does not automatically mean that you cannot get a mortgage elsewhere.
Different lenders have different lending criteria and affordability assessments.
For example, one lender may be more cautious about a particular type of income or credit history, while another lender may assess the same circumstances differently.
If you’ve already been declined, it’s important to understand why before making further applications.
A mortgage adviser may be able to review your circumstances and help identify what could have caused the decline.
Should first-time buyers use a mortgage broker?
There is no requirement to use a broker, but first-time buyers may find professional advice particularly useful.
Buying your first home involves many decisions, and understanding your mortgage is an important part of the process.
A broker can potentially help you understand:
- How much you may be able to borrow
- What deposit you may need
- Which mortgage types could be suitable
- What your estimated monthly payments could be
- What costs you need to budget for
- How the mortgage application process works
So, should I use a mortgage broker or my bank?
There isn’t a universal answer.
Going directly to your bank may be appropriate if you are happy with their products and want to deal directly with them.
However, using a mortgage broker can be beneficial if you want to compare mortgage options from a wider range of lenders or if your circumstances are more complicated.
Ultimately, the most important thing is to make sure you understand the mortgage you’re taking and that it is appropriate for your circumstances.