Broker loans take longer to process

Over the past six months lenders have reduced their maximum loan to valuation ratio to 95 per cent. More recently the maximum loan to value ratio with most lenders is now down to 90 per cent.

Mortgage brokers tend pitch home loan applications to lenders with the most aggressive lending policies which at present are, just, Commonwealth and Westpac.

However, service standards for home loans submitted through brokers are patchy as can take as long as 10 to 15 days which may be due to banks seeking to deliberately have lower service standards for broker submitted-loans.

Source: Business Spectator