How to get the best loan

About 72 per cent of all new home lending is facilitated by mortgage brokers. And they are really helping people get the right finance.

Brokers have really taken the fight to the major banks, such that they are able to negotiate for a better rate on behalf of the borrower.

The profit that banks made from lending to you and me is now almost half of what it was 20 years ago.

The way that brokers have done this has been two-fold.

First, they have kept the big banks honest.  If bank A won’t come to the party with a sharp rate, bank B surely will.  As a result, ANZ now gets 65 per cent of its new mortgage through brokers.

But the second way is perhaps more powerful.  Since the advent of mortgage brokers, a whole heap of lenders have occurred nationwide who can use brokers to offer good deals to their clients.  Here we are talking about lenders like Macquarie, ING, Suncorp and Bankwest.

These mid-tier lenders often offer sharper rates than the big banks – and brokers know which lenders are keenest for the business.

If you want the best loan, contact your broker not your bank.

Graeme Salt is an award-winning mortgage broker.  For a no-obligations consultation on your home loan needs, please contact him on 02 9922 5055