Cheap Home Loans Are Still Out There

Recent surveys of those borrowers who use a mortgage broker to find them a cheap home loan, a more flexible home loan or new car finance show that around 95% of them are extremely happy with the service offered by the mortgage broker or lease broker. As a general rule, if you retain a mortgage broker when looking for a cheap home loan as well as one that is flexible, or a lease broker when you are in the market for new car finance the chances are you will obtain not only a more competitively priced loan but one that offers you greater flexibility than that which you would have obtained if you had applied for finance yourself.

Why is this? The fact is that a good mortgage broker will have access to a wide range of loan products and is familiar with the different terms and conditions offered on various home loan and car loan finance. Often borrowers are complacent when applying for finance. They take the easy and more familiar path being their existing lending institution or bank. Odds are that whatever is offered by your existing lending institution will be at a higher interest rate than a loan obtained through a mortgage broker. It is unlikely that you will obtain a cheap home loan or new car loan - lenders rely on your apathy and if they feel you are a captive client then they will rarely offer any favors. They are relying on human nature that indicates that no matter how dissatisfied one is with one's lending institution it takes a long time for a borrower to make a decision to actually refinance or move their business. With a mortgage broker checking out a range of lenders for home loan finance or a new car loan you will have a much better chance of securing the best and most flexible loan available out there. This could save you thousands of dollars - think about it - an interest rate saving in the current economic environment could keep your tank full or enable you a few more luxuries at the corner store.

Another benefit of using a mortgage broker is that they know the track record of many lenders - which ones offer on-going service and look to build a good relationship with their customers and those who are less caring once they have the business on board. An international report in 2007 on bank customer satisfaction rated Australian banks 13th out of the 17 countries surveyed. The poll looked at bank branches, call centers, online and mobile banking and found Australian banks need to work on their customer service skills. One of the report's authors, Peter Burns from the management consultancy Booz Allen Hamilton, says all banks need to remember their customers are human beings.

In their determination to cut costs and maximize profit, banks have lost the human touch. Not only is it unlikely you will get a cheap home loan or competitively priced new car finance but it seems that it is also even less likely that you will see any personal service from the larger banks once you settle - it will be an automated answering service, they'll know you as a number not a name and if you can actually get to speak with a human being, well it'll be is a miracle.

Make use of the services and professionalism offered by a good and well established mortgage broker. Check that whomever you are dealing with is a member of the industry body, MFAA and then go for it - you will get what you want be it a cheap home loan, greater flexibility or a great lease for that new car.

About the Author
Mark Bona is the managing director of My Choice Finance, the company is a mortgage broker offering cheap home loan and home loan finance.

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