So here are ten things your banker probably won’t tell you: - Addisons Advisory Group

So here are ten things your banker probably won’t tell you:

  1. They can only offer you limited options. Obviously, they won’t tell you about loan products offered by other banks which may suit you better.
  2. Bankers are sales people. They are incentivised to “sell” you a specific solution including credit cards and insurance. The more products or services they get you to “buy” the more money the bank makes. Sure, finance brokers also get paid by the banks for the services they offer, but this income must be declared.
  3. There are 3 doors into the bank
    1. The front door where most retail (mum and dad clients) enter.
    2. The business branch available to larger accounts – the bankers here are more investment and business savvy and…
    3. The institutional branch – where the “big boys” go.
  4. Mortgage rates are negotiable. If you ask them, they can usually give you a better deal, because the bank would rather drop the interest rate a little than lose your business.
  5. An offset account can be better than a term deposit. Putting your spare cash into an offset account is effectively earning you the interest rate on your mortgage, and therefore makes you more money than a savings account or term deposits.
  6. Bank fees are a big money maker. It’s unlikely your banker will tell you that fees are amongst the biggest money maker for the banks. Nor will they tell you…
  7. Some fees can be waived. You bank won’t tell you this, but sometimes certain fees can be waived, just because you asked.
  8. They are not financial advisers. Some borrowers assume bank employees are trained to help them make financial decisions, but that’s not the case.
  9. The “system” will decide on your loan application. Many people think that their bank manager or the loans officer will decide, but in reality “the system” will assess your loan application. All your information will be fed into a computer and your application is reduced to a number.
  10. You should shop around for the best loans or financial products. Many people just go to their bank for loans and other financial products. It seems easier and more convenient to keep their financial accounts with one bank and they assume that, because they have been loyal customers, they will get a good deal. Unfortunately, this is not always the case.

These are some of the great reasons to work with a mortgage broker - at Addisons we work for the client, not the bank. We have access to preferential rates and a number of lenders and are able to compare products to secure the best possible deal. 

Surround yourself with a team of professionals who can provide you with ongoing support and expertise in securing your financial future.

The Addisons Team are here to help!

This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. All loans are subject to lenders terms and conditions – fees, charges and eligibility criteria apply.