Hi All,
This question may have been asked by someone else before however I couldn't find a similar thread.
Currently due to the high interest rate by big 4, the rates that provided by the smaller lender seems to be more attractive. I am planning to apply for a $650000 mortgage and my mortgage broker always refer me to the big 4. When I asked him about the possibility of considering smaller lender, he gave some reasons of not doing such as they are not compatible or they don't provide good service over the lifetime of the mortgage. I started to wonder whether he tried to apply with big 4 so he can get bigger commission.
Has anyone considered smaller lender? What are the real disadvantages to use smaller lender?
Cheers
Hi Xuxu
Yes i can understand the concern and you are right some lenders go straight to the Big 4 because they can get a volume bonus commission with a couple of them.
Personally i have no issue with a smaller lender especially if they are owned or funded by one of the majors.
Interest rate is not the prime function for most of my forum clients it is the overall product and the ability to keep going which is important. This can come down to Credit policy and variations etc.
I can think of a couple of smaller lenders i would prefer to use over the major Banks depending on a clients loan requirments.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
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