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Why use a finance broker

 

Benefits of using a Finance Broker

There are quite a few benefits in using a finance broker.  In this fast-paced world with little time and lots of things grabbing your attention, it can be difficult to navigate finance, especially if you have no idea where to start.

Saves you time

A Brokers job is to shop around for you. Think of a broker as a personal shopper!

Imagine you are looking for a fridge to buy.  You do the research and you settle on a particular make and model.  The next job is to go from one retailer to another to get the best price.  That takes time and effort to save you potentially a few hundred dollars.  Now imagine if you had someone doing that for you!  You get a good deal AND you've saved a lot of time.

Brokers do that same thing, but with finance.  The primary role of a Broker is to shop around for you.  A broker has regular contact with the banking and finance industry and has knowledge of offers and great terms not offered to the general public.  Because a broker does all the legwork for you, it saves you time and energy!

Saves you money

As discussed, a Brokers role is to find you the best deal along with the right product that suits your personal circumstance. If you go to a bank direct, you are locked into their products.  It doesn't mean it's not fit for purpose, it's just that you have only looked at one shop, with one product.  No comparison!

  • Loan A may have a good rate with Big Bank Mutual, but it has restrictive terms and conditions such as termination fees or a lack of ability to pay extra.
  • Loan B may have all the good terms you want, but the rate isn’t as sharp.

A Broker will ask you what you need in a loan.  Or if you haven't got a clue they will tell you the things to look for in a loan, tell you what is in the marketplace and guide you to the best fit overall to your needs.

The goal is to keep your repayments as low as possible as well as having flexible terms and policies.  A broker will do that for you with access to potentially dozens of lenders all competing for your business.

Fees, charges and policies are part and parcel of a loan, and a good broker will outline the fees so you know what you are signing up for with no surprises.

Makes you smarter

Have you ever been involved in a conversation about finance and didn't understand what they were talking about?  Amortisation, equity, defaults, credit scores, loan portability, fixed rates etc etc.  You may have just nodded your head not understanding a word!

A good Broker in interaction with clients will give the ‘inside secrets’ and even provide you with education about how loans work, the tricks, the traps, and the best way to secure the best deal.  They will answer questions you may have had for years.  Brokers LOVE talking finance.  Remember, they aren't selling a product, they are providing a service!

Good Brokers also have developed lots of information tools (like this one!) that can help you navigate the world of finance.

A good Broker won't talk AT you, they will put things in ways that are easily understood and are relatable to you. This is important as finance can be complex, so having a person in your corner helping you 'join the dots' is great. This will also help you in the future when you are making other financial decisions.

As a result at your next family get-together or Friday afternoon drinks, you can be the expert, or at least keep up with the conversation!

 

Saves you confusion, heartache and regret

We see it all the time.  People who shop around for finance not understanding that the lender is putting a hit on their credit file, negatively affecting the most precious commodity when it comes to financing, the credit score.

A good Broker will never put a hit on your file until you are ready to apply.  A good Broker will find out all about you and your circumstances and complete a ‘soft enquiry’ that doesn’t touch your file but just looks at your credit score to know which lender will be best suited.

Once the shine comes off the purchase, the loan is there for the long-term.  Avoiding regret and buyers remorse because you didn't understand or were sold a product is so important to your long term happiness!

 

You get an expert

Brokers are finance specialists, they access finance for everyday people - 365 days a year.

A good Broker should know the intricacies of lenders, their nuances, policies, fees and charges and how to best approach an application.  Having an expert in your corner who assists hundreds of clients every year with a specialist skillset will give you an advantage in your next finance decision.

It can also prevent mistakes and make the overall buying process of a new or second-hand car, boat, caravan or motorbike