A mortgage broker can offer a wider range of options and streamline the mortgage process, but working directly with a bank gives you more control and costs less. And part of the reason is that a broker can use different credit partners, while a bank is at the mercy of its unique set of lending programs. They can't buy your loan anywhere else. If your mortgage application involves challenges such as a low down payment or a low credit score, a broker could help you get a loan product with a better rate.
Some lenders, such as First Direct, don't work with brokers and offer mortgages to borrowers only directly. Nowadays, there is also the option of using a non-bank lender that does not have physical branches or offers deposit accounts, which can result in lower mortgage rates and charges compared to banks and brokers. When high-performing banking staff work together with mortgage brokers, you, as a borrower, get the best of both worlds. We've already established that using a mortgage broker has a lot of advantages compared to going straight to the bank, but finding the right broker is just as important.
If you have bad credit or have faced adverse problems in the past, it's worth using the services of an expert broker to help you get a competitive mortgage. If you already have business with a bank or credit union, it might be worth considering applying for a mortgage directly from that institution instead of working with a broker.