Westminster National Finance Broker blog

How much does it cost to use a Finance Broker?

  • Category: Business Articles and Resources, Personal Finance Articles and Resources

There is no direct cost to you if you use a Finance Broker as Brokers are paid by the banks for introducing new business to them.

So why not go directly to a Bank and get an even cheaper interest rate?

  • Knowing which Bank to go to is half the battle. Without the right market knowledge it could take you weeks to navigate your way through the mass of lending products to find the best deal for you. A Broker will help you quickly and easily find the most appropriate Bank and loan product for your circumstances. If you want the cheapest loan, a Broker will find it.
  • Bank’s don’t offer cheaper rates to customer that approach them directly. Why? If you were to contact a Bank directly to take out a new loan, the bank would arrange for a Loan Officer to assist with your enquiry. The Loan Officer would be paid to assist you in setting up this new loan. A Finance Broker does a similar job however the big difference is that a Broker will firstly find the best Bank and loan product for you. Whichever Bank you choose, that Bank will pay the Broker for sourcing the business for them. The cost of paying the Broker is equivalent to the cost of the Bank paying its Loan Officer so  you are no worse off if you use a Broker.

At the end of the day by using a Broker you get a better outcome and it costs you no more.

Today Finance Brokers account for over 55% of all home loans written in Australia. As such the Banks are very keen to ensure continued flow of business from Brokers and therefore provide priority service to help them write more business.

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