What’s the Difference Between a Broker vs a Banker?
A mortgage is a mortgage but the difference lies in who you secure it from. Choosing the right lender can help you save thousands of dollars. For first-time homeowners, the idea of selecting the right lender can be confusing. Should you borrow from a broker or a banker?
But the decision is critical to weigh your mortgage options best and determine your budget for your first home. Moreover, there are tightened mortgage rules and new stress tests that can make loans a long, frustrating process with no guarantee of one at the end of all the assessments. This is why you need to choose a qualified, experienced mortgage broker to secure the best rate, terms and mortgage options that will impact your home buying choice.
Mortgage Broker or Banker?
Banks: Mortgage rates and options with a bank is standard for everyone. Even if you’ve been using the same bank for years, there’s a slim chance of receiving any special treatment with your relationship manager.
Banks go by the rule book. Your personal financial situation and the bank you use determines the options they offer you. They ask about your existing employer, your monthly salary and duration of employment after which they enter it into a system, then offer you the standard mortgage rate options. You can shop with a couple of other banks to weigh any options that you may have but the variables may not show sharp differences, even though each bank makes you feel valued. If you are self-employed, you may have to face a long battle ahead of you.
Broker: On the other hand, a mortgage broker may offer you a specific solution tailored to your needs. If your finances are not as strong as you’d like, mortgage brokers are quite likely to assess other alternatives to help you secure a loan, instead of denying outright.
A mortgage broker who represents you works with several banks and money lenders on your behalf to get you the best deal. They have access to several solutions that banks may not be accessible to.
It takes a lot of time, effort and experience to continually debate with lenders to secure the best loan options. You will be in better, more knowledgeable hands when experts in the field negotiate on your behalf. To add to this, the broker will not be paid until the mortgage deal closes so you don’t risk losing a cent if things don’t work out between you and the broker.
The devil is in the details when it comes to mortgage loan options. There are often several hidden fees and charges if you don’t watch out. For instance, a large sum of money that you inherit may be what you have in mind for paying off the outstanding mortgage. However, deviating from the agreement and the proposed length of time to pay off the mortgage can cost you for breaking the term. A bank may hesitate to inform you of certain details but a mortgage broker may be more comfortable in discussing these details in a one-on-one conversation.
Collin Bruce: Canada’s #1 Broker for Mortgage
Ready to make the leap to become a new homeowner and shop for the best mortgage options? Call Collin Bruce for assistance. Whether you are a first-time home buyer or an experienced one, we can assist you with the best mortgage products and rates across Canada for the property of your dreams.
