What’s a broker and how are they different to a bank?

When you need money to buy a property, you can either speak directly to an employee of a bank or you can speak to a finance broker. Both can help you borrow.

The difference between them is that the bank employee can only offer you a loan from the bank that they work for. A broker won’t necessarily be aligned with a particular bank, so they can get to know your circumstances and then recommend a product for you from a range of different banks and other lenders.

You shouldn’t pay anything to a broker. The broker is essentially like a salesperson – they get paid a commission by the bank that you end up getting your loan from.