Why Choose a Mortgage Broker and Not a Bank?

By James Harrison – info@mortgages.ca

Historically, when a person wanted to buy a home, they went to their bank with papers in hand and hoped that the lender would give them the okay to buy what they wanted. Today, buyers are savvy to lending practices and many now rely on mortgage brokers instead, and for good reason.

Banks still have mortgages, but they can only offer you what they have in house. They promote their own rates and products, but not necessarily what is best for you. On the other hand, an independent mortgage broker has access to multiple lenders and a variety of mortgages and interest rates.

What is a Mortgage Broker?

Mortgage brokers are licensed specialists and they only work with mortgages. They stay on top of what is happening in the market and they know the products and rates that each institution offers. While they will certainly be aware of what the major banks are doing, they may also know about deals that are not widely publicized. They can often find mortgages for people that the big banks refuse as they have many more resources at their fingertips. A good broker can tailor a mortgage to your particular financial situation, even if your credit may be less than perfect, and get you the best possible rate too.

Think of a broker as your liaison when you need to deal with mortgage lenders. They only benefit when you are happy with the mortgage they have found for you and you are approved for that mortgage. Their assistance costs you nothing.

What are the Benefits of Working with a Mortgage Broker?

Brokers are also a good choice as they can save you valuable time. Many prospective buyers have gone to the trouble of applying at their bank, only to be told that they did not qualify. Reasons for your mortgage being turned down at your bank could be that there are problems on your credit file or your income is lower than the banks’ allowable limits. It is important to remember that your bank is just one lender, and not all lenders have the same criteria. If you thought that you could not buy a home, you should seriously consider visiting a broker to review your situation. Here’s why:

  • The broker will take a good look at your finances, and handle all of the paperwork and the interaction with the lending institution. You need not go through the stressful application process over and over again.
  • Plus, brokers work with these lenders on a daily basis, so they can often speed applications through the process as they know the ropes and will not bother with those that do not match your needs.
  • Mortgage brokers are trained professionals that can advise you on the best type of mortgage for you and your particular financial situation.
  • Your broker can even coach you on ways you can get better interest rates in the future. Not many banks can offer that level of service.

Call a Qualified Mortgage Broker Today

If mortgage brokers are a new concept for you, don’t let that scare you away. At Mortgages.ca, our services are free so you have nothing to lose and everything to gain if you just schedule an appointment to talk with us. Having one of our qualified mortgage professionals on your side makes a lot of sense. Having someone at bat for you when you are trying to make a major purchase can save you time, money and stress, and who wouldn’t want that?