What is a Mortgage Broker? Should I use a Mortgage Broker?
It’s intuitive to think that a middle-man would drive up the price of a product or service. But when it comes to shopping for a mortgage, the opposite is true. If you get yourself a good mortgage broker, you could end up saving thousands of dollars in interest over the course of your mortgage.
Mortgage Broker: a professional that is trained to represent you (the borrower) when you’re seeking financing from a lender (i.e. bank, credit union, etc.).
Your Mortgage Personal Shopper
A mortgage broker is a trained professional that will help you find and get the best mortgage for your personal situation. Typically, a mortgage broker in Canada will have access to many different lenders who offer a variety of loans. Your broker will search the market on your behalf, searching for the best product to suit your needs. (Think of a personal financial shopper who finds you the best deal for your needs.)
Mortgage Brokers are FREE
The broker works for you, the customer, and best of all (besides the fact that they can save you thousands), they don’t charge a fee. Brokers are paid by the lenders once they close the mortgage deal not by you (the borrower).
More Reasons why Mortgage Brokers are Great
Protects your Credit Score
Helps to protect your credit rating by only pulling one credit report and using it for all lenders.
Gives you Expert Information
Mortgage Brokers are up-to-speed on all of the latest mortgage information and know the ins and outs of the mortgage industry.
Saves You Money
A good mortgage broker can provide ideas on how to save on interest while keeping your payments affordable.
Bank vs. Broker
Banks typically have their own mortgage agents who will only offer you the bank’s mortgage products. You’ll also have to do all of the negotiating with the bank yourself to try and get the best rate.
Mortgage Brokers on the other hand compare products from a number of different banks and specialty lenders, and negotiate the best rate for you.