- Private bankers are the first port of call for many home buyers, but their priority is to get a deal that’s good for their bank, not necessarily for you.
- A home loan comparison service can apply to multiple banks on your behalf to ensure you get the best rate.
- A home loan comparison service gets paid a commission by the banks, so their service is free to the client.
Home buyers have a lot more options available to them now than they did in the old days. No longer are you reliant on your private banker (or previously, the bank manager) for home loan approval. Better yet, no longer do you have to go through the rigorous process of applying separately for a home loan to all the major banks. You can get a professional to do it for you with only one application. That’s where a home loan comparison service comes in.
Private banking versus a home loan comparison service
Applying for a home loan through your private banker may not necessarily get you the best deal, as your banker’s first priority is to get the best deal for the bank. Furthermore, if the application gets rejected, you will either have to apply to a different bank, or wait around until circumstances with you or your bank change. Meanwhile, the clock is ticking on your offer to purchase, and you may end up losing the home you have your heart set on.
Fortunately, you have alternatives, in the form of a home loan comparison service. A home loan comparison service helps streamline the home application process and deals with banks on your behalf. Rather than apply directly to your bank and hope for the best, you can have a home loan comparison service apply to multiple banks, including your own, increasing your options and improving your chances of bond approval.
No doubt many prefer the familiarity of applying through their private banker, who they may already have a relationship with. But they are ultimately beholden to the particular bank that employs them, which are governed by the National Credit Act, whereas for a home loan comparison service, the ultimate objective is to get you a home loan at the best rate, regardless of which bank benefits from the deal.
With that in mind, here are just a few examples of why applying for a home loan with a home loan comparison service rather than a private banker works to your advantage:
4 Reasons to use a home loan comparison service
1. They will get you the best deal
A home loan comparison service will shop around for the best deal, and apply to multiple banks, including your own, on your behalf. You’re more likely to get a better deal this way than if you apply to only one bank. Competition between banks drives the interest rates down and results in a more beneficial situation for home loan applicants.
2. Home loan comparison services know what the banks want
Having a home loan comparison service deal with banks on your behalf takes a lot of the pain out of the home loan application process. They know exactly what the banks require, and will submit the necessary information in a timely and efficient manner. They can recommend measures that will improve your credit record and increase your chances of having your application approved.
3. Higher chance of success
Using a home loan comparison service like ooba home loans increases your likelihood of getting a home loan by 36%. As well as having a higher success rate, a home loan comparison service offers a second chance to people whose first application was unsuccessful.
Part of this is because a home loan comparison service has a better understanding of the bank’s requirements, and will be able to ascertain where your application went wrong. The ability to apply to multiple banks also helps, as some banks may reject an application for reasons that have more to do with their own lending strategy rather than the financial situation of the client.
4. The service is free
A home loan comparison service doesn’t get paid by you, they get paid by the banks. They‘ll provide you with multiple quotes from the banks, but once a home loan is approved, they receive a commission from the bank for a successful deal, rather than charging the client.
All of these factors contribute to a higher success rate, as well as a smoother home loan application process. Aside from all this, a home loan comparison service like ooba home loans makes the home-buying process easier by offering a range of home loan calculators that will help you determine what you can afford. You can start with ooba’s free, online prequalification tool, the ooba Bond Indicator. Then, once you’ve found a home that meets your requirements, you can apply for a home loan.