I am always surprised when I ask my clients, friends, and family members exactly what they think a mortgage Broker’s job is. There isn’t a whole lot of information out there in regards to what a Mortgage Broker does and you likely haven’t had a need to look into it until you have decided to purchase your first home or investment property. Even then, many clients still walk into their bank as that is what we have been conditioned to do by society. However, you are losing thousands of dollars in interest by not working with a Mortgage Broker.
Purchasing a home will likely be the largest purchase that you make in your life. Most people are unable to purchase a home without requiring a mortgage. It is important to have a professional working on your side to ensure that you are well educated and receiving the best product for your needs. You could go to each of the banks and credit unions and survey each of them for the best terms and rates. However, you could also work with a Mortgage broker who’s services are free and already knows which lenders have the best rates, terms, and is armed with the experience of completing hundreds of mortgages.
As many people already know, a mortgage broker’s job is to get you the best rate possible. This is of course, foundational to what we do. We have access to over 50 different lending partners. This includes the big banks like TD Canada Trust and Scotia, the credit unions such as Coast Capital Savings and Prospera, as well as many other options that you could not access on your own. We are able to provide you the best rate as our lending partners offer us discounts on their products due to the amount of new clients and mortgages that we source for them. Often the rate that is offered through a broker VS what you would get if you were to approach the lender on your own is much lower.
A good mortgage professional will provide you with much more than just a great rate. They will take the time to understand your personal financial situation and long term goals for your home. This helps ensure that you are matched with a mortgage product that is the best for your needs. They are able to walk you through the process so that you understand where you are at and what is coming next. After you purchase your home, your mortgage broker will continue to remain in contact with you over the term of your mortgage to ensure that it is still the most competitive and still fitting your needs. Some of the big banks charge their private banking clients a $100 a month to monitor their banking products. Your broker provides this same service for free.
There are no negatives to working with a mortgage broker. We require the same documentation that your bank will require, we provide you with the best rates, ongoing service, detailed market information, and best of all, our services are almost always compensated for by the lender making your broker FREE to work with.
Next time you’re in the market for a home, have a friend who is in the market, or are looking to renew your existing mortgage. Think twice about walking into the bank and signing on the dotted line before speaking with a Mortgage Broker.
