The last few years have seen so many changes in the banking industry it really has been a roller coaster. Especially with the findings of the Royal Commission (RC) and the introduction of Best Interest Duty (BID).
The end result of all of this was that whether it’s a Bank or a Finance Broker, a client should be dealt with and advised with their ‘best interest’ in mind.
The major difference here is that when a client deals with a lender, the bank only needs to concider themselves and the products they offer to a client, to be in that clients best interest.
A Finance and Mortgage broker has the ability to concider ALL other options to suit a clients best interest.
Some significant differences between and Bank and a Broker are…
When a client goes to a Bank, the Banker that clients see’s is an employee of the bank. Let that sink in for a minute…
When a client goes to see a Finance Broker to seek borrowing advice, the Finance Broker will be part of a business offering financial solutions. The key difference here is that they are employed to find the right solution for that clients situation.
Many Finance and Mortgage brokers I know have thought that the BID legislation was a bit obvious, as Finance and Mortgage Brokers in main have operated for clients with their best interest at the core of any lending advice given.
Going direct to a bank in the current format of the banking system can leave a client disadvantaged. A Bank MUST offer and advise a client based ONLY on the products and services that will suit that client. The problem here is that while a Bank might have a large range of products or offerings as some might do. They only belong to that Bank.
Banks don’t work for the client, Bankers don’t work for the client. Finance Brokers do!
When you have a Ferrari you don’t take it to the local Caltex to be fixed do you? No, you take it to the specialist who works on Ferrari’s everyday. Clients need to think of their business and their finances as a Ferrari and treat it that way.
The simple fact here is that ALL Banks do things in different ways. Banks also change their appetite for different things at different times. As a Finance Broker I work in this field all day every day. As a Finance and Mortgage broker I am here to find the solution to your lending needs and I work for you, the client.
I understand that your business and its finances are as precious as any luxury vehicle because that is the vehicle you build your wealth on and fed your family from. As a Finance and Mortgage Broker I am here to take the pressure off you needing to trawl through the flotsam and Jetsam of lending and I will find the solution to best suit you.
As a Finance Broker I am able to sit with you and show you the differences between banks, how different products compare. That wont happen in a Bank. As a Finance and Mortgage Broker I do this all day every day. It also means that when its time to review your business loan or home loan that we can step in and make sure that the Bank is still sharp and delivering great rates and products for you. Keeping the money in YOUR pocket not the Banks!
How many times has the Bank called you the client and asked if they could review or improve your interest rate? I am thinking probably never, UNLESS they receive a discharge form. This is what a Finance and Mortgage Broker does for you the client when you apply for a loan and a good broker should be doing this for you on a regular basis.
So before you entrust the business you have spent your life building, or the home you have spent years saving to own to just one lender. A Broker should always be in your corner, going into bat for you with the bank. Maybe its time to see a Finance and Mortgage Broker and see just how much we can save you.
JC
Scenarios and interest rates quoted above are suggestions and constitute general advice only.
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