Taking a home loan is a significant endeavour for most people. This is because the principal amount is usually high. When considering your home loan options, you should consider the services a mortgage firm can provide. However, there is no one correct answer to whether to obtain a loan from a bank or a mortgage company. You must explore all your options and weigh all the pros and cons before making an informed decision.
For some reason, banks seem to be the safest option to get your home loan. Maybe because the government directly regulates them, or we consider banks a more legitimate source of getting our loans. But that is not entirely true. Loans availed from mortgage firms have a lot of pros as well. Therefore, it will be unwise not to consider choosing a mortgage company altogether without knowing what they have to offer.
Additionally, mortgage companies can provide you with better credibility assessment, much higher competitive interest rates, a more convenient process of applying for a loan, and, most importantly, working towards finding a solution that works for you.
Different Aspects of Home Loans in Sydney
Here we will discuss the different aspects of home loans, and how banks and mortgage companies fare, so you can decide what’s best for you.
1. Assets Assessment
Whether it’s a bank or a mortgage firm, they give you a loan based on your credibility as a borrower. So both these entities try to gauge your potential to pay back the loan with interest. However, banks might not accurately measure your assets or net worth. Sometimes, the most mundane formality can stop them from giving you a loan, such as misinterpreting payslips or not assessing other assets well. A mortgage company is well endowed with assessing its client credit potential.
2. Specialisation in Home loans
A bank provides various services, from banking facilities to savings accounts, salary accounts, credit card services, and so on. Therefore they fail to have specialised knowledge of home loans. However, a mortgage firm does not have that problem. They are specialists in home loans and know how to bring the best loan offers to you. They can provide you with a broader range of home loans so you can decide what fits your criteria.
3. Home Loan Variety
When dealing with a bank, they can provide only the discounts or offers in their particular bank at that specific time. This cuts down on the many offers you can get if you were to consider a mortgage firm. A mortgage company is determined to give you the best possible offers, given your current situation. Whether it is variable interest rates, fixed interest rates or refinancing your home loans, we got you covered.
4. Interest Rates
One of the primary criteria for choosing any home loan is the interest rates. The interest rates offered by Banks are usually limited. A bank can only offer so much variation. But in the case of a mortgage firm, they are up for providing you with competitive interest rates. They can even offer much more fluidity with your home loan. A bank is not concerned with giving you competitive interest rates.
5. Loan Procedure
The loan procedures for a bank and a mortgage company are different. A mortgage company would allow you to fill out the forms and do all the formalities online. They have a much more convenient point of contact. On the other hand, a bank will need you to visit their branch and fill out the documents personally.
6. Motive
A mortgage firm and a bank are both excellent options. But the aspect that sets them apart is a bank has to cater to the interest of the bank. Therefore, they are not very flexible with their options. However, a mortgage firm works towards the best interest of its client. They are invested in trying to bring the best offer to their clients. Therefore they offer much higher flexibility whilst also considering their client’s expectations.
7. From start to end
A mortgage firm handles your case from the initial stages to the last till you get the best home loan offer. Their point of contact remains the same throughout the process, leaving less room for ambiguity, and they provide complete assistance if you don’t understand some loan terminologies. They find the best credit officer to help with your asset evaluation. They even correspond with solicitors, real estate agents, etc., to make sure there are no hiccups along the way.
At APW finance, our interest is aligned with the interest of our clients. We strive to give you the best home loans, financial services and individual attention to cater to your monetary needs. Contact us if you want the best financial services and home loans in Sydney.
