What to do when the bank says "no"

September 07, 2016
Jenny Pham

In one of our recent blog posts, we discussed some reasons why your application for a new loan may have been rejected. It's important to understand what went wrong, but dwelling on the situation doesn't ever help. What does help is being progressive and thinking, "Ok, what now?" 

A majority of people turn to their own (or nearest) bank when deciding to apply for a home loan or refinance, but financial experts warn that if this your strategy, you could be missing out on some significant benefits. 

There are endless reasons why it pays to use a mortgage broker when shopping for your home loan. Even if you decide to use your own bank for your mortgage, you can still use a broker to help process the paperwork and manage the application on your behalf, while having no direct cost to you. It saves you time, money, and energy. 

If you aren't set on any one particular lender, a broker can be your best friend, says Medine Simmons from www.mfsimmons.com.au.

She offers five arguments as to why you should seek the help of a qualified mortgage broker when trying to obtain property finance:

1. Choice

“The biggest advantage of a broker over a bank is choice,” she says. “When you sit in front of a broker you are sitting in front of 10+ banks and 50+ products versus visiting a banker who has access to only one bank’s products. This is especially important at time like now, when the banks are saying ‘no’ more, and by having more choices you’re likely to get a ‘yes’.”

2. Experience

Ask your lending manager how long they’ve been helping people with home loans, Simmons suggests. “Brokers often own their own businesses and are committed to their clients in the long term, with many years of industry experience,” she says. “Banks are big companies; they move their staff around and reward good performers with promotions away from their customers.”

3. Specialisation

If you’re looking for specialised help with your loan, it pays to talk to a specialised broker. “For example if you’re starting property investing, look for a broker who specialises in property investors. Bank staff often don’t have the training or experience in one area, but service whoever happens to walk in to the branch,” Simmons says.

4. Follow Up

Following up the progress of your loan application is often time consuming and frustrating. A good mortgage broker will have an organised and convenient system for chasing you up, keeping you informed and saving you time.

5. Personal Banker

Your mortgage broker is “like the perfect personal banker,” Simmons says. “They know what needs to be done, they make sure it happens and because it’s their own business, they’re in for the long haul. Bank staff change often so even when you find a good personal banker they change jobs before you know it.”

Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Access loans from all the major lenders, get help with paperwork, and sit back while all the work is done for you. Did we mention there's no charge to you for this service?

Call me now  at 0499 643 643 to get in touch with your "Perfect Personal Banker."


Posted in: Tips

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