Which Is Better for Home Loans in 2025: A Bank or a Mortgage Broker?

By Michael Durr

Mike Durr, a devoted family man, seasoned athlete, and passionate sports fan, brings over 30 years of real estate expertise to his role at KMG Lending, where his analytical approach and industry-leading closing times have helped his team close over $60 million in property sales.

When you’re ready to finance your home or investment property, one of the first questions you might ask is: Should I go with a bank or a mortgage broker? It’s something that buyers and investors wonder about. With the real estate market changing in 2025, picking the right mortgage partner is more important than ever. I’ll walk you through the main differences between banks and brokers so you can figure out which one’s the best fit for your needs.

1. Banks are the traditional choice when it comes to mortgages, and they’ve been around for a long time. They offer a set range of loan options with clear lending criteria you’ll need to meet to get approved. They are also known for being reliable and stable, which is why many borrowers feel comfortable working with them.

If you already have a checking or savings account with a bank, the process might be quicker and easier with your financial info already on file. For those who meet the criteria, things usually go pretty smoothly and predictably. That said, banks usually have a limited selection of mortgage products and stricter requirements, like specific income levels and steady work history. In addition, the approval process can be slower because they handle lots of applications and rely on third-party processing.

If you have a strong credit score, steady employment, and meet the bank’s criteria, working with a bank could be a solid choice.

2. Mortgage brokers act as middlemen between you and multiple lenders, giving you access to a wider range of mortgage options. Since they’re not tied to just one bank, brokers have the flexibility to shop around and find a loan that fits your unique financial situation. This is especially helpful if your employment history or finances don’t fit the traditional mold. This means more choices, more flexibility, and often faster approvals because brokers usually have direct connections with decision-makers at different lenders.

On the downside, brokers might charge fees for their services. Depending on who you work with, you might not also get the same personal touch you’d get at a bank you’ve been with for years. If you have a unique financial situation, are self-employed, or just want a wider selection of loan options, a broker could be a great fit for you.

How to choose the right option for you. If your finances are pretty straightforward—say you’ve got a good credit score and a steady job—a bank might be the better option. Banks may also offer better rates for traditional borrowers, and if you already have an account with them, the process can go smoothly.

On the other hand, if your financial situation is a little less conventional, like being self-employed or having a non-traditional income, a mortgage broker could be a better choice. Brokers tend to offer more flexibility and access to a wider range of loan options. They also move faster since they work directly with lenders. Brokers can help you shop around and find competitive rates, even from lenders that aren’t typically on your radar.

Deciding between a bank and a mortgage broker depends on your unique financial situation and goals. Both options can help you secure a mortgage, but understanding the differences in terms of loan requirements, flexibility, and processing time will help you make the most informed decision.

If you’re unsure which route is best for you, I’m here to help! With years of experience in the mortgage industry, I can help you navigate your options. Whether you choose a bank or a broker, I can assist you every step of the way to ensure you secure the best financing for your dream home or investment property. Reach out today, and let’s find the right mortgage solution for you.