Did you know that you don’t need to walk into your bank to get a mortgage? This is a common misconception, even in today’s technology driven world.
Our parents and their parents worked closely with their bank for years. They likely developed relationships and had mutual trust and respect.
Today, banking is very different. Local branches serve thousands of clients and employees and are often hired, trained, and transferred very quickly. This means that it can be difficult to build a meaningful relationship with your favorite teller, financial advisor, or business account manager.
It is also perceived that you will experience preferential treatment and superior product offerings because you and or your family have been loyals customers for many years. We can say from experience, that this is not the case.
Banks are businesses and their obligations are to their shareholders. They are also bound by very strictly federal regulations which may prevent them from being able to offer you a solution.
So again, in today’s environment, a long standing and loyal client does not carry as much clout as it once did with major financial institutions.
This is where mortgage brokers can help.
What Is A Mortgage Broker?
A Mortgage Broker is a licensed and independent agent who has access to hundreds of different loan programs offered by dozens of different mortgage lenders across Canada.
As independent advisors, Mortgage Brokers represent the customer, you, and do not work for any one lending institution. This means that you will receive expert unbiased advice.
Benefits Of Using A Mortgage Broker
- Time – Mortgage Brokers offer a one-stop-shop solution. With just one application, we can access the marketplace on your behalf. This saves you hours upon hours of setting up appointments with various banks and credit unions and not really knowing if one offer is better than the other.
Many brokers are also mobile or remote. For example, GOAT Mortgages help clients via phone and email and do not require any in person appointments. This results in quicker mortgage approvals, rapid response time to questions, and allows you to spend more precious time with your family, friends, and colleagues.
- Expert Advice – because Mortgage Brokers only specialize in mortgages, they are able to offer expert advice and strategies that may not be known to a branch employee. Banks are great for everyday needs like accounts, credit cards, loans, investments, etc. But because they need to know a little about a lot, it’s hard to find someone who knows the complex nuances of mortgages inside and out.
- Choice – Brokers work closely with banks, credit unions, mortgage finance companies, alternative lenders, and private lenders. We can quickly and easily pivot into a different product or program if needed and without having to submit multiple applications or supporting documents.
- FREE – In most cases, working with a Mortgage Broker is free. The lender of where your mortgage is placed, offers the broker a finder’s fee that is based on the size of your loan. For example, the average compensation to the broker is around 1% of the loan amount. This is important to know as their compensation is not based on your interest rate. This is how you know they are working in your best interest.
If you require an Alternative Mortgage or a Private Mortgage, the broker may then charge a fee for service. This would be disclosed and discussed upfront as to avoid any surprises.
As you can see, there is no disadvantage to working with a Mortgage Broker, especially when their services are free, convenient, and professional.
If you have any questions about our services or would like to contact us for help, please do so by CLICKING HERE and we will be happy to assist.