Ideally, you want the best priced mortgage with all the features you need so you can live comfortably and repay your loan within the shortest time possible. Depending on the type of mortgage, you could save a great deal of money by shopping around for your home mortgage needs. For that reason, it is important that you know the differences between a mortgage broker and a bank lender.
Mortgage brokers provide homebuyers with access to dozens of lenders, including the leading banks, credit unions and other lenders. This means that brokers can save you the hassle of finding the best mortgage rate and terms to suit your needs. They will do the homework for you in order to find you the best deal possible.
On the other hand, your bank may not be your best bet for your mortgage since they represent just a single lender. Not only is the act of trying to secure mortgage financing made complicated by banks, it sometimes ends in failure.
Access to multiple lenders is a major difference between finding a mortgage from a broker vs a bank. Here are a few more differences to help you find a lender that has your best interests at heart.
Mortgage Broker
Brokers offer access to offers from multiple lenders. They may offer a better product to anyone who needs it. This is because they have a large network of lenders who they work with to find you the best mortgage rate and terms. As such, the more lenders you research the more you end up saving.
A mortgage broker usually works for the borrower and not any particular lender. This means our Collingwood Mortgage Brokers team will work with you, discuss your needs and get a lender that will offer the best product for you.
Brokers also offer access to mortgages for anyone with credit problems. This means they often find a lender who offers home loans to the self-employed and anyone else who the bank disapproves.
When it comes to cost, the chosen lender usually pays the broker for the solution and services offered.
Moreover, brokers provide constant advice even after the close of your mortgage. This includes advice on how to pay off the loan, resolve debt issues or invest in real estate. Having a professional on your side is always important.
All in all, your mortgage broker will save you the hassle of finding the best mortgage rate and terms to suit your individual needs.
Bank Mortgage
The rates are determined by the bank. This means you’ll have to do your homework to find the best deal available out there. You may have to pay much more than you actually need to if you don’t shop around and compare deals aggressively.
The banks work with mortgage experts to grow their business with little regard to your financial goals or situation. These mortgage experts are remunerated by the bank.
Some client circumstances make it extremely difficult to get approved for a mortgage loan. If you happen to be self-employed or have an inconsistent work history or mortgage market rates and it becomes even more difficult.
Don’t expect any ongoing service from a bank. You will only receive the annual mortgage statement. You might not get the best deal at first, so you may need to contact your bank from time to time to negotiate.
If you are looking to finally buy your dream home, look for a reliable mortgage broker to help you shop around and find the best deal possible. A mortgage professional can also help you find the lowest fees, rates and terms for your mortgage needs. So don’t hesitate to contact a our team of experienced and friendly staff today.