The benefits of using a broker over the bank!

When you are buying a house and need mortgage advice, who should you turn to? Should you go straight to your bank, or should you take the time to work with a mortgage broker? Using a broker offers several advantages over a traditional bank. How does the process work with a mortgage broker, and why are they an essential part of homeownership? Here’s what you need to know!

The role of a mortgage broker

Let’s start with a refresher on what a mortgage broker does for you. A mortgage broker does not provide mortgage financing to their clients. Instead, they act as the middle person between clients and lenders and are connected to both parties. Your mortgage broker will get to know you and your financial situation. Based on this, they will connect you with lenders who might be a good fit for your needs. They represent you when you are searching for a lender as they can negotiate on your behalf and make recommendations for you. While a broker doesn’t give you a mortgage, their influence in your buying journey is huge.

Lender access

A bank is a lender. If you go to a bank when you are looking to buy a home, they will naturally try to push you towards one of their mortgage products. Other lenders are their competitors, and they will not want to refer you to someone and lose your business. The issue is that not every lender will have the right product for you. By going directly to a bank, you risk missing out on a potentially better match.

Brokers, on the other hand, have access to a wide variety of lenders and products. Working with a broker means finding the product that best suits you. A broker’s role depends on being able to recommend the right solution to their clients. This means they will always work to find you the perfect fit, while traditional banks will strive to keep you on their side. 

Flexibility

A bank will be fairly conservative with their mortgage approvals. They are not very flexible in terms of the clients they approve as they are traditional lenders. Clients who do not have the best credit history, are new to Canada, or who own a small business, for example, will have a hard time securing a bank mortgage. This traditional model is becoming increasingly difficult to fit into as the needs of house hunters are changing. 

Mortgage brokers are very flexible in terms of the clients they will work with. No matter what your situation is, they will work to find you the perfect lender. This might involve reaching out to alternative or private lenders, who tend to be more flexible with their clients’ circumstances. No matter what your situation is, a mortgage broker will be much more flexible than a bank, and will have a higher chance of finding you the right solution.

Unbiased advice and on your side

The biggest advantage of using a broker is the fact that they are always on your side. Brokers are paid a standard fee across the mortgage industry. There is no reason for a broker to push you toward one lender over another, because there is no benefit for them. This standardized compensation method ensures that brokers always put the client first, and guarantees they are acting fairly and in good faith. You never need to worry about your broker pushing you toward one lender for selfish purposes. Your broker is your advocate and is always on your side! 

The advantages of using a broker are undeniable. In most cases, a mortgage broker’s services are free for the client as well! There is truly no downside to turning to a broker for help in today’s market. Even if you end up securing your mortgage through your bank, going through a broker ensures this is the best option for you. If you need any guidance finding the product and rate you deserve, be sure to get in touch with us as soon as possible! We are ready to help you move forward in today’s housing market. 

If you have any questions about your mortgage, get in touch with us at Clinton Wilkins Mortgage Team! You can call us at (902) 482-2770 or contact us here.