Bank vs Broker - What we offer

We often get asked what the difference is between us and the bank, why should the client not go directly to the bank? It’s a good question and I think it’s important that all advisers are able to articulate their point of difference.

So, let’s look at the key differences and then what a good mortgage adviser (and definitely DUX Financial) will do for you.

First let’s start with the areas of no difference:

  1. Rate – ignore anyone that tells you that the bank gets better rates or that brokers do. It’s not true. On any given day the rates will be higher or lower, but the banks offer the same rates (or as supposed to) to both direct and broker channels.

  2. Cash contributions – as above, it’s the same either way

  3. Getting you the loan – if you have an easy situation (ie 20% deposit, high incomes, normal house) there is no difference in the chance of getting the loan in either channel, but if it’s hard this change.

But here are some differences

  1. Product provider vs adviser – the bank provides the product, but they don’t give personalised advice. They won’t tell you if actually you would get a better approval for more money down the road. A good adviser understands all the lenders and can provide you with personalised advice.

  2. Scope of service – the bank person will provide what you ask for, but does not often go into detail on the offer, the due diligence, structuring the loan etc.  a good adviser is with you all the way.

  3. Complexity – if the loan is easy, then it’s not an issue, but if its tricky (odd deposit, odd house, odd income etc) the broker can look at the best way to present it for you to emphasise the positives and put you in the best light. The banks don’t tend to do that for you, and often the direct frontline bank staff are only used to dealing with the easy stuff.

  4. Use of products – often the bank staff don’t go into any detail on their products, they just ask you to pick what fixed you want, a good adviser will go into detail on structuring the loan and how to use the banks products to save interest over the long term

  5. Variety – the bank staff can only give you their products, but a good adviser can advise on multiple banks, and insurance companies for the right product for you.

A good Mortgage adviser will do the following:

1.       Look at your situation and determine the best plan for you

2.       Help with making an offer, sorting your price, conditions etc.

3.       Sorting the conditions out

4.       Managing any complexity or issues

5.       Advising on the loan structure and repayment plan

6.       Advising on the insurances from a variety of providers

7.       Being there for your refixes and future life changes. 

Ultimately, it’s about advice vs product. Bank staff can provide the product for you, and its good, but a good adviser will help you make the most of that product, in conjunction with the bank. The bank is not in the business of helping you pay them less money, but a good adviser can help you save thousands in interest over the years.

At DUX we have a full process to help you save for the future, get and get rid of your mortgage and achieve your goals. Give us a call and let’s discuss your needs.


Alan Borthwick