Broker or Branch lender?

 Mortgage Broker:

1. Intermediary Role:  Mortgage brokers function as intermediaries between borrowers (homebuyers or refinancers) and a variety of lenders. They do not originate loans directly but instead work with multiple lenders to find the best loan options for their clients.

2.  Access to Multiple Lenders: Brokers have relationships with various lenders, including banks, credit unions, and other financial institutions. This allows them to shop around and find loan products that suit the borrower's needs, such as better lending amount, more competitive interest rate. 

3. Product Options: Brokers can offer a range of loan products from different lenders, potentially providing more options than a single bank.

4. Independent Advice: Since brokers work independently, they can provide objective advice and help borrowers choose the loan that best fits their financial situation.

5. Lender unique policy: Every lender has its niche policies that can meet respective customer’s circumstances.

6. Commission-Based Compensation: Brokers typically is remunerated by the banks by earning a commission from the lender for each loan they facilitate. This commission may be a percentage of the loan amount. There is no biased from the brokers of which lenders to recommend as the lenders typically pays the similar commission percentages.

7.  Ongoing relationship and support: Last, but not the least, probably the most important reason to appoint a mortgage broker is the onging relationship you can expect from the broker. Bankers move between departments very often. While a mortgage broker earning on a comission based income tend to move less often in their role. Therefore, mortgage brokers can  provide ongoing services including reviewing loan pricing, renegotiate deal, loan restucturing, further equity release for investmetn purposes, etc. These are part of the ongoing service a customer can expect from the broker. And the process can be much simplier as the broker already understands the client's situation well.

Branch lender:

1. Direct Lending Institution: branch lender work for a specific lending institution, such as a bank or mortgage company. They originate loans directly on behalf of that institution.

2. In-House Loan Products: branch lenders offer loan products available from their employer. They do not shop around among different lenders.

3. Single Source:  Borrowers working with branch lenders are limited to the loan products offered by that financial institution.

4. Salary and Commission: branch lender may receive a salary, commission, or a combination of both. Their compensation structure depends on the policies of the lending institution.

5. In-House Decision-Making: In same cases, branch lender can often facilitate quicker decision-making since they work directly with the lending institution and are familiar with its processes. 

The choice between a mortgage broker and branch lender depends on individual preferences, the complexity of your financial situation, and the loan products you are seeking. Mortgage brokers may be suitable for those who want more options and independent advice, while branch lender may be preferable for individuals who prefer working directly with a specific lending institution. It's essential to carefully consider your needs and preferences when deciding which professional to work with during the home loan process.

In current banking landscape, the banks are rapidly reducing branch numbers, Mortgage broker is becoming an increasingly popular option for ordinary people.