Does a mortgage broker cost me anything?

Usually nothing, because brokers are generally paid by the lender when your loan settles. If a fee ever applies, a good broker tells you first.

Can a broker get me a better deal than my own bank?

Often, because a broker compares many lenders rather than offering just one bank's products. The result depends on your situation.

Is a broker worth it for a simple loan?

If your situation is very simple and you enjoy comparing loans yourself, you can go direct. A broker mainly saves you time and widens your choice.

Is a mortgage broker worth it? Let's be honest | The Newcastle Mortgage Broker

You have probably wondered whether a mortgage broker is actually worth it, or whether you may as well just walk into your own bank. Fair question. Here is a straight answer.

What does a broker actually do?

Think of a broker as your guide and your shopper, rolled into one. Instead of you applying to one bank and hoping, a broker compares loans from lots of lenders, finds ones that suit you, and handles the paperwork from start to finish.

A broker will:

Work out how much you can borrow before you start looking
Compare rates, fees and features across many lenders
Recommend a loan that fits your life, not just the lowest ad on TV
Do the application and chase the lender for you
Stay with you all the way to settlement

What does it cost you?

Usually nothing. Brokers are generally paid by the lender when your loan settles, so the service is normally free to you. If a fee ever does apply, a good broker tells you first.

Why a small rate difference is a big deal

Here is the part that surprises people. A tiny change in your interest rate can add up to a lot of money. Let us look at Tom.

That is the whole point of a broker: more choice usually means a better deal.

When a broker is genuinely worth it

A broker tends to help most when:

You are a first home buyer and it all feels confusing
Your situation is not “standard” (self-employed, casual work, small deposit)
You want to refinance but are not sure if it is worth it
You simply do not have time to compare lenders and fill in forms

When you might not need one

If your situation is very simple, you have a big deposit, and you enjoy comparing loans yourself, you can absolutely go direct. A broker is about choice, convenience and guidance, not magic.

The local bit

Newcastle has its own kind of market, from the inner-city terraces to the suburbs up the hill. A local broker you can actually sit down with beats a call centre in another state.

Want an honest read on whether a broker can help you? Request a callback. The first chat is free and there is no obligation.

This article is general information only and does not take your personal circumstances into account. Speak to a licensed mortgage broker for advice specific to you.