What is the definition of a Broker?
A broker is an individual or firm that arranges transactions between buyers and sellers and earns his or her income when the transaction is executed.
In certain industries, they are being used very extensively, for example in insurance brokering, stock brokering and property buy sell transactions. In certain countries like in Australia and the US, many of the mortgages and home loans are also brokered through a broker.
As specialist in their trade, a broker would typically have considerable market information, knowledge, data and experience to help you make better decisions, get better rates and saves you time and money.
What is a Mortgage Broker?
Now that we have covered the basic definition of a broker, I suppose everyone can come up with a good guess on what mortgage brokers are.
A mortgage broker basically helps to broker mortgages between lenders and borrowers and provides advice, guidance, compare options and source best quotes & solutions for their customers. A mortgage broker does not fund the loans. The loans are ultimately under-written, provided and managed by the lenders/banks/FIs.
There are some "mortgage brokers" that only front an online portal website, merely acting as an enquiry collection centre and simply forwarding out all requests to all lenders. Customers often then end up getting more than 20 calls from multiple lenders & bankers calling them to request for information and customers repeating themselves over and over again.
At Mortgage Supermart, you would be rest assured that a dedicated broker will contact and attend to your enquiry, first understanding your needs, priorities and objectives and presenting you with suitable quotes/options/solutions for your consideration.
What is a Loans Broker?
A loans broker typically quite have the same job scope of a mortgage broker but provides a wider scope of business lending solutions like business loans, trade financing, equipment and machinery finance, project financing, micro loans etc., offering consumers and businesses a one stop solutions provider for all your financing needs. The loans are ultimately still underwritten and financed by the banks. A loan broker does not fund the loans.
Benefits of using A Mortgage or Loans Broker
- Independent Advisor
- Widest Range of Selections & Solutions from over 30 lenders
- Best Financing Deals & Rates
- Save Time
- Save Money
- Service Excellence
- Ease and Convenience
Brokers Vs Banks
A banker works for the bank and can only provide single lender solutions, options and rates. A broker is an independent advisor that sources and provides the best rates, quotes, options and solutions for their customers from multiple providers.
In conclusion, a banker works for the bank while a mortgage broker works for their customers.