Why Choose A Mortgage Broker Vs A Bank?

broker vs bank mortgage

Choosing a mortgage can be daunting. You’ll quickly come up against the crucial question of whether you should get a mortgage from your bank, or a mortgage broker. We’ll look into a few details below to help you make the right choice for your situation.

Before you know it, you can quickly end up being overwhelmed and unsure of where to start. If it is anything to go on, this is one major reason why you should consider seeking a mortgage broker. Finding a broker to act as your guide in getting a mortgage, can make it so much more straightforward. With this in your pocket then, you can now focus your energy on other more important things which hold your attention. This could even be also learning about the different lenders and programs which are available to you in your area instead.

3 Key Benefits Of Using A Mortgage Broker

Of course, there is a myriad of reasons why you should consider using a mortgage broker. Here we highlight 3 key benefits of using your preferred broker as compared to going directly to the bank.

Help With Mortgage Pre-Approval

A significant step in starting your mortgage journey is getting pre-approved. Getting pre-approved gives you an idea of how much you can qualify for, and you can consider the property in that price range. Also being pre-approved makes your position as the borrower look good to the lender.  Your mortgage broker can help you get pre-approved by working along with you to pull your details together, and also in submitting your application to several lenders simultaneously.

Your broker works with you to assist you to shop around for the best mortgage rates and terms fitting within your pre-approval bracket amount. The mortgage broker will therefore help ensure that you get some of the best rates around. Doing this will also give you a good idea of what your monthly repayment can be. Imagine if you had to go to each bank and go through this application process each time. 

The Offer Of Convenience & Saving Time

Your mortgage broker is the middle guy that handles the process for you and can educate you about the best option for your needs. This can be particularly beneficial when making decisions like whether you’re best with a variable mortgage or a fixed mortgage. That is the convenience many people crave in the mortgage journey. This includes assisting in management of fees with respect to getting your mortgage, and even when you approach a new lender. The broker has significant information on lenders, the repayment terms, admin fees and any other fees which may be hidden in the contracts.

Your broker makes this process easier, as you may not have the time or resources to learn about the terms and conditions and any other details of each lender. The broker saves you time. Wrapped into this convenience is a significant level of trust. You may tend to have a higher level of trust between borrower and broker, as compared to trusting the bank.

Negotiation – On Your Terms

variables vs fixed mortgage ratesA third key benefit of using a mortgage broker is that they can negotiate on your behalf. This ultimately means that they can ensure that you, the borrower, can get some of the best mortgage rates in Canada. They work with your unique position and also it all happens regardless of your credit score.

The relationship formed with your broker allows them to get to know you. It is because of this that helps them in matching you with the best deal around, and that’s also their job. This can also include things like the broker negotiating for you to get your home equity loan or even a mortgage payment deferral. Something like this helps with your monthly payments and managing your general credit. It may also be just a bit more difficult to do these negotiations with your banker.

The Team

Working with you as a team is exactly what your broker will do.  This team of professionals helps you through the tough bits of the process. Holding your hand as you seek out your mortgage provider and also giving heads up on the right amount of mortgage financing or refinancing. This along with helping to ease the hassle of negotiation and the benefit of finding the best fit for your unique position. Each mortgage broker will have their subtle differences, along with some other added benefits.

Having an idea of how they work and what they do is what can get you going today.