Banks or Brokers?

If you’re looking to buy a new house, one of the first things you’ll probably be thinking about is finding the best mortgage deal you can get.

The question is, should you go directly to the bank, or approach a broker?

Let us give you a little insight on each option to help you answer that question.


The great thing about going through a bank is that they usually have a wide range of mortgage deals to choose from, and you have the ability to negotiate banking costs and loan application fees. They can offer discounts on insurance, and in some cases, may even contribute to some of your legal bills, potentially saving you thousands.

On the flip side, banks are often more cautious and strict about their lending policies. So you may find it quite difficult to get a loan if you don’t have a good credit history.


Shopping around for mortgage deals at different banks can be time consuming, and at times, frustrating!

This is where mortgage brokers come in. A broker doesn’t lend you the money, but they do all the dirty work for you - by running around and finding the best mortgage deals on your behalf.

Unlike banks, brokers can present you with the best deals from many banks and other finance companies. They have extensive knowledge about interest rates and application processes with different lenders, so they can help you with all the paperwork, and leverage their existing relationships with banks to help you get better rates.

If you’ve been struggling to get a loan from the bank because you’ve got a bad credit history, brokers can provide with advice and even approach other lenders to try and get a loan for you.

Best part is - they do all of this for free! You won’t have to pay them a cent for their services, as they make their money from commissions the banks give them.

If you’ve got a good existing relationship with a banker, it may be better for you to work with them to find a mortgage deal that suits you best.

Otherwise, in most cases, it’s a better idea to go through a mortgage broker.

It’s essentially a free service that’ll help you shop for the best mortgage deal, that’ll get you on your way to buying your dream house.

To help you kick off your home buying process, check out our tips on how to choose the right mortgage broker for you.