What Does a Mortgage Broker Do?
Buying a home is one of the biggest financial commitments you’ll ever make. So unless you’ve been lucky enough to win the lottery or inherit a bunch of money, you’ll probably need a mortgage to pay for it.
When you’re borrowing this much money, every little bit of interest can make a big difference. With so much at stake, it makes sense to talk to an expert — a mortgage broker can help guide you through the process and find a loan that’s just right for you.
This article will cover everything you need to know about mortgage brokers including:
What is a mortgage broker?
How a mortgage brokers services can benefit you
How to find a mortgage broker that’s a right fit for you
What is a Mortgage Broker?
When you choose to work with a mortgage broker, you’re working with someone who acts as a middleman between you and multiple lenders. With access to many different mortgage lenders, a mortgage broker is able to offer customers a one-stop shop for all of their mortgage needs. Working with a broker gives you access to the following types of lenders:
How a mortgage brokers services can benefit you
The big banks here in Canada
Local Credit Unions
Your mortgage broker will get to know you, your needs and your financial situation. Based on this knowledge and their industry expertise, they match you with the lender and mortgage product that best suits your requirements.
Why Use a Mortgage Broker?
A mortgage broker can help you save time and money on your home loan. Take a look at some of the main reasons to use a mortgage broker:
I am your one stop shop: One of the best things about working with a mortgage broker is the ability to shop around for competitive rates. Unlike banks or credit unions that only have access to their products, a mortgage broker deals with multiple lenders –– this gives them the ability to shop your rates with a large portion of the market in-house to ensure that you’re getting a competitive rate.
I can get you a better rate: Brokers can get you the best deals. They shop around for the best rates, but they also have other ways to get you a better mortgage rate. For example, many of them receive volume discounts from their top lenders. If they offer you a lower rate due to a volume discount, then that’s as low as you’ll be able to get it directly with that lender.
Expertise and advice: If you want an expert to guide you through the process of securing a mortgage, talk to a mortgage broker. Mortgage brokers are licensed professionals with a high level of expertise in securing mortgages for their clients. They bring expert knowledge needed to get you a mortgage specifically tailored to your needs AND at the best rate, so you don’t have to navigate in unfamiliar waters.
I work for you…not the bank: Let’s face it, most people don’t have the time to shop around for the best mortgage. Thanks to mortgage brokers, you don’t have to! Mortgage brokers work for you and not the lenders, so they can give you impartial advice.
My services are FREE: And we saved the best for last. With all the benefits provided by mortgage brokers, you would think they would be expensive to use. But not at all! Mortgage brokers don’t charge a fee—it’s actually the lender who pays them. And since you’d typically only use a broker for conventional financing, it means that using one doesn’t cost anything extra on top of your rate.
Is a mortgage broker or mortgage agent right for me?
According to a recent survey, nearly 50 percent of Canadians agree that using a mortgage broker is better than working with a traditional lender. As we’ve outlined above, there are many benefits to using a broker; and there’s almost no downside.
Using the services of a mortgage broker doesn’t lock you into any contracts either. If you don’t like the service or mortgage options provided, you can always take your business elsewhere. Mortgage brokers don’t all work with the same lenders, so another brokerage may be able to offer you access to different lenders and mortgage products that better suit your needs.
What alternative options are there?
Using a mortgage broker is an excellent way to get a loan, but there are other options available. This includes:
Your current financial institution
Any of Canada’s big banks
Going directly to the lender can be a good option, but it may not be the best choice. A mortgage broker can help you get the best deal on a loan by ensuring:
Your financial institution is offering you the best product and rate to meet your goals: Going directly to your current financial institution and securing a mortgage through them is likely the easiest route to go down if you’re not using a mortgage broker. They will already have most of your financial details required to obtain a mortgage on file, plus you may also qualify for discounts for having multiple products with them. The major downside is that they won’t always have the lowest rates or most flexible products available. Mortgage brokers can offer you expert advice about which product will work best for you and ensure you’re being offered the best mortgage product for your specific needs.
You get honest advice that’s unbiased: When you shop for a mortgage, you may be tempted to work directly with a lender instead of a broker. But keep in mind that the lender works for the bank, not you; and it may be difficult to get them to give you impartial advice.
You understand all of your options: Another potential problem to consider is the time and effort it takes to shop for mortgages on your own. A mortgage broker has access to many lenders, giving them a more holistic view of the market and the ability to shop your rates in-house. To do the same amount of shopping by going directly to the lenders yourself, you need to be willing to spend a ton of time on the phone and doing research. A mortgage broker can ensure that you know about all the options that apply to you.
How can Ahmad, mortgage specialist at AskAhmad.ca and the Total Mortgage Source 360 Team help you?
Ahmad and his team are industry experts on mortgages. They offer excellent customer service and pride themselves on their ability to help you find the right mortgage product for your needs.
We can offer you some of the most competitive interest rates and mortgage products available because we have access to Canada’s leading lenders, including banks, mortgage firms, trust companies and private lenders.
Total Mortgage Source 360 FSRA#12151 – Each office is independently owned and operated
Meet Ahmad, Your Mortgage Specialist.
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