Banks are notorious for their rigid lending criteria, high interest rates, and inflexible terms. Unfortunately, the prominence of their name in the financial sphere misleads many borrowers who turn to them for familiarity and reliability, saddling them with increasingly high costs on their loans. With less incentive than brokers to shop around for the best deals on behalf of their customers, suboptimal loans are a stark reality for many borrowers.
If you’ve found yourself in this situation and want a more tailored and beneficial lending product for your new purchase, or want to refinance a current loan to harness better rates and terms - here’s how you can beat the bank.
Secure Better Rates, Terms - Leverage a Broker
Shopping around, negotiating with lenders, and optimising your loan application are three key steps to finding better rates and terms on your loan. However, doing this on your own can present a number of challenges. Firstly, researching lenders to find the best rates and terms for your specific situation is time consuming. Secondly, sourcing multiple quotes from multiple lenders can negatively impact your credit score. And lastly, lacking important industry knowledge will impact your ability to effectively negotiate with lenders.
By using a broker for all three tasks, plus many others, a number of benefits can emerge. From access to more lenders and specialised knowledge, to increased negotiation power and time efficiency - brokers can provide a competitive edge over banks to secure better rates and terms for borrowers.
Access to Multiple Lenders
Brokers, like our loan experts at Jade Finance, work with a network of lenders. By having an extensive number of lenders they deal with regularly, they are able to access a substantial range of loan products and interest rates. When borrowers approach them for a deal on their loan, they are able to tap into this network to shop around and find the best possible rates and terms for their customer. The comparison of multiple offers gives brokerages their competitive edge, often securing lower interest rates than what a single bank can offer.
Specialised Knowledge
Because brokers specialise in loans and financing, they can be much more knowledgeable about different loan products and the best options for specific financial situations. Due to this knowledge, brokers can provide tailored loan solutions that better meet the specific needs of a borrower.
Negotiation Power
Brokers have a deep understanding of lending criteria and market conditions. It is due to this understanding that they are able to negotiate more effectively on behalf of their clients. Additionally, the volume of loans brokers’ handle allows them to secure better rates and terms from lenders.
Flexibility and Accessibility
Borrowers have unique needs when it comes to securing a loan. By using a broker, more flexible loan terms and repayment options can be achieved. Brokers also have access to a variety of non-bank lenders who often offer more competitive rates or terms, especially for borrowers who don’t meet traditional bank criteria.
Time Efficiency
Applying for a loan can be a very time consuming task. By enlisting a broker, the paperwork and administrative tasks are taken care of, making the loan application process quicker and easier for the borrower. Due to the relationships brokers’ build with lenders throughout their career, faster approval times compared to banks can often be achieved.
Customer Focus
Brokers take the time to understand your financial goals. It is due to this that they are able to provide a more personalised service to borrowers and offer ongoing support and advice throughout the loan term.
Closing Thoughts
Banks can present a challenging landscape for borrowers with their strict lending criteria, interest rates, and inflexible terms. Many individuals are misled by the familiarity and perceived reliability of well-known banks, only to find themselves burdened with costly and suboptimal loans. To avoid this pitfall and secure a better deal on your loan, using a broker is a significantly beneficial choice. With their industry knowledge and negotiation power, brokers provide personalised service and flexible terms to help you get the best possible deal for your financial situation.
Why Should I Partner With a Broker at JADE Finance?
With over 25+ years of experience, Jade Finance has a large office of fully qualified, well-trained, licensed professionals who are committed to their clients through the peaks and troughs of the ever-evolving financial services industry. With new players constantly emerging, and existing companies expanding their products and offering - Jade Finance is a strong, stable company that you can trust to uphold your best interests. To get in touch with one of our brokers, call 1300 000 008 or Request a Quote.
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