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Mortgage Broker vs Banker: Which One is Right for You?
March 13, 2023 | Posted by: Matt Broom-Hall
Mortgage Broker vs Banker: Which One is Right for You?
When it comes to getting your mortgage, the lender you choose can make a big difference in how much you end up paying. It can be difficult to decide whether to work with a mortgage broker or a banker. But choosing the right option is crucial to ensure you get the best mortgage terms and stay within your budget.
Bank Mortgages
Banks are a common choice for mortgage loans. However, they typically offer standard mortgage rates and options that are the same for everyone. Even if you have a long-standing relationship with your bank, you may not receive any special treatment from your relationship manager.Banks consider factors such as your employer, monthly salary, and duration of employment to determine your mortgage options. They enter your information into a system and offer you standard mortgage rate options. While you can shop around with a few other banks to compare options, you may not see significant differences between them. If you're self-employed, you may face additional hurdles in getting approved.
Mortgage Brokers
Working with a mortgage broker can offer more personalized solutions. If your finances aren't as strong as you'd like, a broker can help you explore alternative options to secure a loan instead of outright denial.A mortgage broker works on your behalf with several banks and money lenders to find you the best deal. They have access to solutions and special rates that are not available through traditional banks. Click here for the complete guide on mortgage brokers.
Negotiating with lenders to secure the best loan options takes time, effort, and expertise. Mortgage brokers have the experience and knowledge to navigate the process on your behalf. Additionally, brokers typically don't get paid until your mortgage deal closes, so you won't lose any money if things don't work out.
Mortgage loan options can be complex, with hidden fees and charges that you may not be aware of. For example, if you receive a large sum of money and want to use it to pay off your mortgage, deviating from the agreed-upon length of time to pay off the mortgage can cost you for breaking the terms. A bank may not inform you of these details, but a mortgage broker can discuss them with you one-on-one.
We can help you find the best mortgage products and rates across Canada. To learn more about Hello Mortgage, what makes us unique and different, and how we work for our clients, click here.