Not too long ago, savvy homeowners would’ve included their bank manager on their annual Christmas card lists. The name probably would’ve sat quite near the top. In fact, they might’ve even sent a present.
Maintaining a relationship with the person who ran your local branch was seen as being just as important as knowing an above board and reliable mechanic, having a good accountant, knowing which hairdresser was the best, and being on a first-name basis with your kid’s doctor.
You’d dress up in a suit and tie or smart dress and head down to the branch for a catch up once in a while. You know, to put in a bit of face time.
And when you wanted to buy a new home or refinance, you’d prepare yourself in the same manner you might for a job interview.
It made sense. A good relationship with your bank manager often meant a smoother application process, lower rates and cheaper fees.
Like many charming parts of life in time gone by, those days are well and truly over, my friends.
If you’re after mate’s rates on your mortgage, don’t bother going to your bank.
Your bank manager isn’t your friend
Look, your bank manager isn’t a bad person. They’re probably quite nice. But their ability to do you any favours is either seriously limited or mostly non-existent.
Their job is not to maintain relationships. It’s to maintain sales targets. It’s to package in credit cards and transaction account products with mortgages. It’s about locking in your business – not for as long as possible, but for as much money as they can.
This means you’re likely to get a bad deal if you go straight to the financial institution you’re currently banking with, without shopping around first.
I don’t mean to sound cynical… but your bank manager isn’t your bestie. They don’t care about you and your situation. They care about their business.
Going to your bank and expecting a great deal on your home loan is like going to McDonald’s and expecting to lose weight.
Where to get mate’s rates
If you want mate’s rates on your mortgage, you absolutely must go to a broker.
They’re experts whose entire days are spent pouring over every home loan product on the market in excruciating detail.
It’s a specific level of detail that you’d never be able to achieve on your own, partly because it’s so complex but mostly because you’ve got a life!
Brokers are experts who are best placed to advise you on which product is right for you, by virtue of the fact that they know every product available.
More than this, they have enormous bargaining power with the big banks themselves.
Think about it — brokers are walking around with stacks of quality customers that the banks are desperate to nab… they’d love to get a slice of that business pie.
Brokers are in the unique position to negotiate a better deal.
They can ditch or significantly reduce annoying annual fees, get inclusions for free, get rid of the banking products you don’t want or need, and in many cases, secure a lower ongoing interest rate.
The way brokers are compensated is standardised, heavily regulated and carefully scrutinised.
There are no kick-backs from the big players for funnelling business their way. It’s the same whether you go with a Big Four or a smaller player.
This means you get impartial advice and independent guidance, but an expert who’s inside the room and is willing to battle on your behalf.
That’s a very attractive prospect – much more so than going it alone at your local bank branch.
Getting the right financial advice about mortgages
The banking sector has changed enormously since last century, in particular, with the rise and rise of mortgage brokers who work exclusively for borrowers.
And part of their service includes sourcing the very best deal for their clients – every single time.
The world of banking and finance can be a pretty daunting one for both novice and sophisticated investors and since our establishment in 2002 we’ve focused on providing outstanding service and business standards. This approach has been vindicated many times by our multi award-winning approach.
So, if you’d like to understand more about how to get the very best mortgage rates, why not contact Intuitive Finance today to ensure you have the right information and expert support on your side from the very beginning.
If you’d like an expert to teach you more about home loans or if you have any other questions, please just contact us directly and we’ll be in touch.
The information provided in this article is general in nature and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information you should consider the appropriateness of the information with regard to your objectives, financial situation and needs.