Broker vs bank, should you use a broker or a bank?

We are often asked by clients ‘what is the difference between a broker and a bank?’. The answer is that one is a financial institution that issues loans (bank) and the other is a financial institution that organises loans and advises on them but doesn’t actually give you the money (broker). Perhaps the way to think of it is like this, if you want to eat you can get food at a supermarket, using a broker though is like going to a supermarket and getting advice on different items as to which is the best for your health and the best price for what you purchase.

Every loan ends up in a bank so its not an accurate question in one respect to ask whether the actual loan is going to be different via a broker or a bank. The loan you obtain via a broker is a bank loan, the difference is that a broker will help you choose the best solution for your needs whereas a bank will only ever advise you on the loans they can offer …

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