Benefits of using a mortgage broker

Whether you are thinking about purchasing a new property or planning to consolidate some of your high-interest credit card debt, your first thought might be to connect directly with your bank.

Please read this column first as it could save you some time and money and explain why working with an independent mortgage professional is really in your best interests. You may also want to check out the online reviews for your current financial institution as part of your decision-making process.

Mortgage brokers are independent, trained professionals who are licensed to represent and provide you with the best advice for your mortgage needs.They deal with many different financial institutions and this allows them to offer you more choices and generally more competitive rates. It also means their advice is impartial and based on whatever is in your best interest and not what is best for your bank.

Mortgage brokers represent you and not the lender. However, they must also keep the lender’s best interests in mind and do their due diligence, of course. They are not employees of any lending institution.

Bank employees are salespeople for the bank and are not highly trained mortgage professionals. The fact is, each bank branch acts as a separate profit centre, independent of the banks head office. They are rewarded and paid based upon the profitability of their overall mortgage portfolio.

A mortgage broker can offer you the best terms and rates upfront. That doesn’t always happen at a bank. It is not in a bank's best interest to offer you (better) rates (than it offers) or direct you to another lender if it thinks the other lender has a better product.

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

Mortgage brokers 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. Brokers know the quality of products offered by various lenders and can quickly shortlist the ones that best match your needs. You’ll end up with the best features and rate, all in one stop.

The entire process can be completed securely online from the comfort of your own home within hours that work for you.

Mortgage brokers deal with the same reputable, established Canadian financial institutions you deal with every day but they also have access to some innovative broker-only lenders who sometimes offer even more attractive rates and features. In addition, they also work with alternative lenders for those who don’t fit within the bank box.

The best part is there's no cost to you for allowing a broker to assist. In most cases, it’s the lender that pays a mortgage broker's fees.

Please email me at [email protected], or you can book a time here on my calendar 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.