Mortgage broker or bank?

Photo: alternativemortgagefinancing.net/

If you’re thinking about buying a new property or taking advantage of today’s low interest rates to consolidate high-interest credit card debt, your first thought might be to call your bank.

Read this article first as it could save you time and money and explain why working with an independent mortgage professional is in your best interests.

Mortgage brokers are independent, trained professionals licensed to represent and provide you with the best advice for your mortgage needs.

We deal with many different financial institutions, which allows us to offer you more choices and generally more competitive rates. It also means that our advice is impartial and based on whatever is in your best interest and not what is best for your bank.

We represent you and not the lender. (We must also keep the lender’s best interests in mind and due our due diligence.) We are not employees of any lending institution. Bank employees are salespeople and not mortgage professionals.

Each bank branch acts as a separate profit centre independent of their head office. They are rewarded and paid based upon the profitability of their overall mortgage portfolio.

As a mortgage broker, I will offer you the best terms and rates upfront. This doesn’t always happen at a bank. It is not in their best interests to offer you the best rates or direct you to another lender if they think the other lender has a better product.

A bank branch also has limited access to mortgage products as they can only offer what’s available in their portfolio and unfortunately as mortgage brokers we often see client who have been placed into restrictive mortgage products based solely on low rates that were being promoted by banks.

We can sort through dozens of lenders in the time it takes you to book an appointment at your bank. Shopping for mortgages can be time consuming and frustrating

if you do it yourself. We know the quality of products offered by the various lenders and can quickly short list the ones that best match your needs. You’ll end up with the best features and rate, all in one stop.

Mortgage brokers deal with the same reputable, established Canadian financial institutions that you deal with every day but we have access to some innovative broker-only lenders who sometimes offer even more attractive rates and features.

We also work with alternative lenders for those who don’t fit within the bank box.

The best part, there is no cost to you for allowing us to assist. In most cases, the lender pays our fees.

Please give me a call to arrange a no obligation consultation whether you are buying a home, renewing an existing mortgage or looking for additional funds.

We can review all of your options so you can make your best decision on the largest financial transaction of your life.

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.