A mortgage broker is first and foremost, a mortgage specialist. A personal banker may have extensive training in their bank’s mortgage products, but this is only a fraction of what they focus on daily.
A mortgage broker deals exclusively in mortgages, day in and day out.
This is crucial. With volatile economic circumstances in the world today, you want someone who knows the business thoroughly, intimately, and up to the minute.
Second, and equally important, a mortgage broker has access to a much wider pool of products, rates and lenders for you to choose from. A bank can only offer you their own mortgage products, with very little discretion on what kind of rate they offer you, no matter how good or long-standing a client you have been. No matter how much they may want to give you a good deal, they are limited in what they can do.
This means that if you want to compare rates, you have to do the shopping around yourself. This can be complex, as the right mortgage is about more than just posted rates; it also rules out access to some of the mortgage lenders out there, which are much more than just the major banks.
A mortgage broker on the other hand does the shopping for you. Our firm has access to a pool of literally dozens of lenders — including banks, credit unions
and loan companies — across Canada. By dealing only in mortgages, a broker develops a relationship with the lender, and gets you better rates because of it. By bringing lenders millions of dollars in business each year, we earn the favourable rates that save YOU money.
Best of all, a mortgage broker does not need to cost you a penny. Our commission is paid by the lender, not the borrower (you) – and if you meet the basic criteria, there are no fees or costs whatsoever. In short, why wouldn’t you go to the specialist in the field with the broadest range of products to offer you? Especially when it costs you nothing, and saves you potentially tens of thousands of dollars over the course of your mortgage?
Mortgage Broker Facts
Mortgage brokers are a relatively recent phenomenon in Canada, but since their emergence in the 1990s, mortgage brokers are steadily gaining ground as the preferred mortgage specialist for home buyers and those looking to refinance.
In fact, 44% of first-time home buyers are now choosing a mortgage broker, according to a Canada Mortgage and Housing Corporation survey. The same survey shows mortgage broker clients report high satisfaction levels. Here’s why:
- Brokers usually receive the same commission from the lender no matter what rate they get you, meaning they have every incentive to get you the best rate. Bank specialists, on the other hand, will often get a lower commission for lower rates, giving them an incentive to sign you for higher rates.
- Mortgage brokers are strictly licensed and regulated according to provincial rules, with ongoing training in their field, unlike personal bankers
- Brokers have access to the widest pool of lenders, financial instruments and rates for you to choose from
- Mortgage brokers work for you, not for any bank or financial institution; this means they can give you objective advice on what mortgage is best for you
- A mortgage broker only takes your credit bureau history once, and forwards it to all the potential lenders. If you apply to multiple banks, your credit history is pulled several times, which can negatively affect your score.
Find out more about how a mortgage broker can get you the best mortgage rates and options – call us today 1-866-RATE-708