When you’re looking to borrow money in New Zealand—whether for a home, car, business, or personal use—you’ll typically encounter two main options: going directly to a bank or working with a loan broker. Both paths can help you secure a loan, but they operate differently and offer distinct advantages. Let’s break down the differences to help you make an informed decision.
What Is a Bank Loan?

A bank loan involves borrowing directly from a financial institution, such as ANZ, ASB, BNZ, or Westpac. These banks offer a range of loan products, including mortgages, personal loans, and business loans. When you apply for a loan with a bank, you’re limited to the products and interest rates that particular bank offers.
Pros of Bank Loans
- Established Relationships: If you already have accounts with a bank, you might find it convenient to apply for a loan there.
- Standardised Products: Banks offer a range of well-known loan products with clear terms and conditions.
Cons of Bank Loans
- Limited Options: You’re restricted to that bank’s loan offerings, which may not be the most competitive in the market.
- Strict Criteria: Banks often have stringent lending criteria, which can make it challenging for some borrowers to qualify.
- Less Flexibility: Banks may be less accommodating when it comes to tailoring loan terms to individual circumstances.
What Is a Brokered Loan?

A loan broker acts as an intermediary between you and multiple lenders. They assess your financial situation and shop around to find loan options that best suit your needs. Brokers have access to a wide network of banks and non-bank lenders, which can be particularly beneficial if you have unique financial circumstances, such as bad credit.
What Are The Pros & Cons of Brokered Loans
Pros of Brokered Loans
- Access to Multiple Lenders: Brokers can present you with a variety of loan options from different institutions, increasing your chances of finding favorable terms.
- Tailored Advice: They can provide personalised recommendations based on your financial situation and goals.
- Assistance with Paperwork: Brokers often help with the application process, making it less daunting.
- Potential for Better Rates: By comparing multiple offers, brokers may secure more competitive interest rates for you.
Cons of Brokered Loans
- Broker Fees: Loan brokers may charge fees for their services.
- Quality Varies: The level of service can differ between brokers, so it’s essential to choose one with a good reputation.
Why Choose East Bay Finance?

At East Bay Finance, we pride ourselves on being a trusted personal loan broker. Our team of experienced Loan Consultants are Registered Financial Advisors, committed to finding the best loan solutions for our clients.
Our Services Include:
- Personal Loans: Whether you need funds for a holiday, home improvements, or unexpected expenses, we can help you secure a personal loan with competitive rates starting from 9.95%.
- Vehicle Loans: Looking to purchase a new or used vehicle? We offer tailored vehicle financing options to suit your budget.
- Business Loans: For entrepreneurs and business owners, we provide financing solutions to support your business growth.
- Debt Consolidation: Simplify your finances by consolidating multiple debts into a single, manageable loan.
- Secured Loans: Borrow up to $150,000 or more with our secured loan options, using your assets as collateral.
Why Work with Us?

- Quick and Easy Application: Our online application process takes just 3 minutes, and we aim for same-day payouts*.
- Expert Guidance: We navigate the lending landscape on your behalf, saving you time and effort.
- Wide Network: Our connections with various lenders mean more options and better chances of approval.
- No Upfront Fees: It’s free to complete an application, and fees apply only when you enter into a loan arranged by us.
Choosing between a bank loan and a brokered loan depends on your individual needs and financial situation. If you value a broad selection of loan options, personalised advice, and assistance throughout the application process, working with a personal loan broker like East Bay Finance can be a smart choice.
Ready to explore your loan options? Apply now!
*Subject to responsible lending checks and criteria.