Banks and lenders usually offer staff discounts on their loan packages. These can range from interest rate discounts, to the waiving of lenders mortgage insurance (LMI).
However, better offers can often be found by going outside of staff benefits scheme, sometimes at another bank, or even at the same company you work for!
Is my staff discount competitive?
While bank staff used to receive large discounts on mortgage interest rates, many of the perks for bank staff have been cut back in recent years. These days, the discounts that banks offer their staff is limited to lowering fees or small interest rate discounts.
- Waived LMI: If you’re borrowing over 80% of the property value and the bank is waiving LMI then this is an excellent deal. In this case, it’s usually worthwhile applying through your bank. Only one or two banks have this discount for their staff.
- Interest rate discounts: If you’re borrowing under 80% of the property value OR don’t have waived LMI then in most cases, you can get a better deal from another bank.
You can call us on 1300 889 743, or enquire online and one of our specialist brokers will talk to you about what the other banks have on offer.
Why are better deals available elsewhere?
Banks such as ANZ, Commonwealth (CBA), St. George and Westpac, among others, are usually not willing to offer their staff higher discounts than those that they give to the general public.
If the lender that you work for doesn’t have competitive products already then in most cases, their staff discount won’t be competitive either.
The banks will never offer you a product from another competing company. A mortgage broker however, works with many different banks and lenders including the bank that you work for, and will be able to tell you if you’re getting a good deal or not.
How can a mortgage broker find a better deal?
Whilst the banks may give staff discounts on their own products, brokers are able to offer deals from all the lenders they work with. This gives them a greater range of products to choose from, and therefore a better chance of not only finding great deals, but also the most suitable product for your needs.
Some mortgage broking companies also have special partnerships with lenders. In some cases, they will be able to offer their clients better deals from those lenders, than would otherwise be available.
In a few cases, we’ve been able to get bank staff better deals from their own employer than they could get on their own! To find out more enquire online, or call us on 1300 889 743.
How do I know where to apply?
You can research online or go from bank to bank asking them what they can offer, but it might be easier to call an experienced mortgage broker whose job it’s to know the lending policies of different banks and lenders.
Every time you apply for a loan with a lender, a record goes on your credit file. Getting a loan declined will lower your credit score, making it difficult to get your next application approved.
A mortgage broker removes most of this risk by assessing your situation BEFORE applying. We won’t apply with a lender who can’t consider your situation, so you can be confident that your credit history will stay intact.
Why should I apply with another lender?
There are many reasons why bank employees choose to apply with another lender for their home loan. These can include:
- Privacy: Other staff may be able to see your personal details in the bank system. While banks have strict rules with regard to privacy, they aren’t always followed.
- Leaving the bank: In some cases, staff discounts are cancelled if you change your employment. For this reason, many contractors choose to apply with other lenders.
- Lending policy: In most cases, the banks will still not make exceptions to their lending policy for employees. It makes sense to apply with a bank that caters to someone in your situation.
Apply through a mortgage broker today!
Home Loan Experts is dedicated to finding our clients a home loan that works best for their needs.
We can pick and choose products from over 40 different banks and lenders, often finding bank employees better mortgage deals.
We look for deals where you can borrow the greatest percentage of the property value, at the most competitive rates, with the best discounts across our panel over more than 30 lenders, including the major banks.
Are you looking for a mortgage and are employed at a bank or lender? We can help! Contact us today and one of our specialist brokers will help you find the best home loan available from our panel. Call 1300 889 743 or enquire online.