Why can a mortgage broker get a better rate than a client on their own?

by archynewsycom
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Ana, a middle-class woman who lives in the province of Barcelona, ​​signed a fixed mortgage at the beginning of the month to finance the purchase of her new home. The interest on the loan, at a time when banks announce fixed rates of around 3.50% or higher, is significantly lower than the market average: 2.80% only in exchange for direct deposit of the payroll. And what was her secret? Entrust obtaining the credit to a mortgage broker.

According to the financial comparator HelpMyCash.com, there are more and more clients who follow the same strategy as Ana, because a mortgage broker usually gets better terms than those that they can obtain if they process the application on their own. But why does the bank offer better mortgages to these intermediaries? The key is in your knowledge of the market and in your greater negotiating capacity.

In general, according to the comparator analysts, the intermediation agencies that offer this service are made up of professionals who have been working in the sector for several years; some even with previous experience as commercials in bank offices. This gives them a plus of knowledge allowing them easily identify which entities it is best to apply for a mortgage based on the client’s profile.

It is also common for intermediaries to have agreements signed with certain banks. Under these agreements, when the mortgage is requested through the broker in question and not for free, the entity offers starting conditions that are more competitive than those that the client would obtain if they requested financing on their own: with a lower interest rate, with fewer associated products, etc.

These agreements between broker and bank are beneficial for both parties. The intermediary, on the one hand, obtains a more competitive mortgage for his client and offers a better service. And the financial entity, on the other, maintains an alternative channel open to its offices or its website that allows it to attract new mortgage applications and, potentially, increase the granting of housing loans.

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