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Mortgage broker and Mortgage banker

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| 25 Aug 2011, 08:05 AM Agree 0

What is the difference between a mortgage broker and a mortgage banker?
  • Jamie M | 27 Aug 2011, 01:37 AM Agree 0
    Hi there

    I think you mean the difference between a mortgage broker and a banker?

    Here's a good article explaining the key differences - http://www.passgo.com.au/blog/25-the-project/72-mortgage-broker-vs-bank-manager-which-is-best

    Cheers

    Jamie
  • Herman | 09 Mar 2012, 06:49 AM Agree 0
    Well a mortgage broker is middle man between the home buyer and the lender while the mortgage banker is the lender.
  • KatieD | 29 Apr 2012, 08:23 AM Agree 0
    The key difference between mortgage banks and mortgage brokers is that banks have more of a standardized and set approach to setting fees. Bankers are told what fees to charge and are told not to stray away from them. This allows for more stability and prevents the borrower from being surprised when it comes to discovering what the fees for the home loan will be.
  • Jamie M | 08 May 2012, 02:30 AM Agree 0
    KatieD

    Your post makes no sense whatsoever.

    Cheers

    Jamie
  • RayEthell | 21 May 2012, 12:17 PM Agree 0
    mortgage broker can be seen as a home finance expert. In most cases, lending is all they do and they can give you professional advice to match your needs with a suitable lending solution. Given that a housing loan is probably the biggest expense you will ever have, it pays to get the best advice possible. A great mortgage broker will save you time, effort and most likely money in selecting a loan to suits your needs.

    Regards,

    HomeLoansAustralia.com.au
  • AlexisKirk | 30 May 2012, 04:54 PM Agree 0
    There is no one answer for your question, each lender has different guidelines for lending and one maybe able to get you the loan, but the rates maybe considerable higher.

    If you give your information to multiple people they can all shop around and find you the best deal and it won't adversely affect your credit as long as you do it all at the same time with in about a 30 day period, the credit agencies will only see it as one pull. They know you aren't really going to buy 10 homes and are just trying to find the best deal.

    If you can't find a bank that is willing to lend you money and you have a good down payment, I suggest you consider doing owner financing or a land sales contract. (But, I would seek the help of a good CPA, to make sure that is the right decision for you first)

    Good luck and happy house hunting.
  • Smartline Chiswick | 30 May 2012, 11:58 PM Agree 0
    Alexiskirk - your information is totally incorrect for Australia as our credit system works completely differently. If you have more than a handful of credit enquiries on your file in a short period it definitely works against you here.
  • AuPropertySpectator | 05 Jun 2012, 08:01 AM Agree 0
    I think the value of a mortgage broker is their ability to pre-qualify you with many lenders (hundreds, even) which can save you a lot of time when shopping around.

    I'm not in finance myself at all; and like to remain quite neutral on this stuff because I'm always paranoid any posts about it will make me appear like I have a vested interest in 'thought-shaping' readers into one thing or another. I don't!

    But I won't deny that for some people; a mortgage broker is an excellent asset. For others, not so much.

    In fact, I just today wrote a list of pro's and con's of using a mortgage brokers on my blog, work a minute or two of your time if you're unsure of whether a broker is the right choice for you:

    http://propertyspectator.blogspot.com.au/2012/06/using-mortgage-brokers-for-finance-what.html
  • JoemelY | 01 Aug 2012, 10:40 AM Agree 0
    n essence, mortgage brokers know where the money is. Rather than lending their own funds, they lend money from other sources such as banks, pension funds, insurance companies, and savings and loan associations. A mortgage banker is different. A mortgage banker, says the Mortgage Bankers Association of America, is "an individual, firm or corporation that originates, sells and/or services loans secured by mortgages on real property.
  • trackone | 14 Dec 2012, 06:54 PM Agree 0
    Keep in mind that while a good mortgage broker will source you the best loan given your needs and personal financial circumstances, the industry itself is not as neutral as would seem. Commissions paid to the broker vary from lender to lender which arguably reduce their objectivity.
  • Rob | 19 Feb 2013, 04:51 PM Agree 0
    dealing with one bank has meant cross collaterisation which I now know is not a great thing and holds me back. There are some great deals with on-line financiers with rates as low as 5.12%, so I will be redraw excess funds for a deposit and use an on-line provider which suits my needs.
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