Aaron Whybrow argues that banks don't reward long-term customers with better home loan rates. Home loans are regulated and banks scrutinize existing customers the same way they do new applicants. He recommends using a mortgage broker who can shop across lenders and negotiate better terms.
Recently I was asked the ageog question, what about loyalty? I've been with the bank for 25 years. What about loyalty with a bank? Hey, it's Aaron from Diagnostics and Finance. And loyalty with a bank is judged quite differently, especially when you're going for a home loan. Bank loyalty may come into nominal transaction account bank fees, it may come into waiving some fees at times, but I can pretty well guarantee you there's no favors when it comes to going for a home loan. Home loans are fairly highly regulated. The policies the banks have differ slightly between them. And when we go to our own bank to borrow money, we are put under the same amount of pressure as if we were coming to them brand new, if we were coming to them as a nobody. So how do we get around this? Well, you come to myself as a diagnostics and finance mortgage broker and we give you the loyalty. We go across all the lenders to be able to find the ones that are going to be able to give us the money. We narrow them down to those one, two or three lenders and then away we go. We go and we negotiate and we put them up against each other to get you the right deal. So then the loyalty is not necessarily with the 25 year old bank that you had. The loyalty then comes to myself as a broker. That means that when you read reviews on a bank, negative, positive, you'll be able to determine them as just the vehicle for you to have some money as you get the money to build your wealth. If you don't like the bank of what they've done, or they've increased interest rates or something's happening related to fees, charges, etcetera, we can move you as the loyalty is with me, the broker, we can move you from bank A to bank B. And that is where the company and the business and the banking loyalty comes in. Just understand home loans, there's no real favors when we're going for a home loan. We have to find the right bank with the right policies, with the right amount of money that's going to be able to achieve your goal. All right, have a great day.
