Is it Easier to Get a Mortgage From Your Own Bank?
The truth is, this is a complicated question. In some cases, it may be easier to get a mortgage from your own bank. Not only may it be easier to get a mortgage from your bank, but there might also be advantages to doing so. However, in some cases, there are also disadvantages to getting a mortgage from your own bank.
When is it easier to get a mortgage from your bank, and what are the advantages?
If you are a first-time homebuyer, it is probably easier for you to get a mortgage from a bank than to work with a broker. This is directly tied to the benefits of working with your bank. These advantages include:
- Already have an established relationship, allowing you to get specific discounts
- You already know the banker who will handle your mortgage, and they already know you
- They may be able to offer you lower interest rates in some cases.
- They may allow you to add your mortgage to an existing account, making the process of mortgage repayment easy.
What are the disadvantages of getting a mortgage from your own bank?
If you are not a first-time homebuyer and already have loans from your bank, it may be more difficult to obtain another home loan from them. Not only can the application process take a long time, but steps along the way can become messed up. For instance, there may be delays in your property valuation or misinterpretation of payslips. They may even question prior loans you’ve applied for with them. One of the most significant disadvantages of getting a mortgage from your own bank is they may not reward your loyalty with the best interest rates. Typically, these interest rates are reserved for new borrowers. Banks want to create new business, incentivising new borrowers to apply with them while ignoring their current customers.
Before applying for a mortgage with your current bank, consult the brokers at Mortgage House. As professional brokers, we must act in your best interest, providing you with loan options that fit your financial situation and offering you the best rates.