What is a Mortgage Broker and Why do I Need One?
What is a mortgage broker? A mortgage broker is an intermediary between a client and lending institution. They facilitate the transaction to assist the client in finding the right home loan product. Mortgage brokers are typically paid by the lender, so there are no fees for their services on standard mortgage transactions. The benefit to the client is gaining access to wholesale current mortgage rates which they may not qualify for at their branch.
A mortgage broker is a provincially licensed mortgage expert who only deals in mortgages; they do not cross sell other bank products for the bank. And because mortgage brokers are not affiliated with any lending institution, the advice you receive will be professional and unbiased. Simply put, you simply cannot work for a bank and work in the best interests of the client; your primary role is to sell bank products at a profitable margin.
What is the Difference Between Using a Banker Versus Broker?
The question of ‘what is a mortgage broker’ is likely a good one for your banker, as they don’t seem to know. Often when dealing with your bank, they will refer you to one of the ‘banks mortgage brokers’. This is actually not true, these staff members are simply mortgage sales reps for the banks. A broker is someone who works on your behalf and has the ability to deal with a number of different outlets (from banks to private lenders) in order to find you the best rates. Again you cannot be unbiased when you work for the bank; your role is to make the institution more money.
Mortgage specialists rely heavily on referrals for their business; this means that every person they deal with is a potential referral source. You will always receive great service, expert advice, ample choice of product and of course the best interest rates when you apply for a home loan with us! Not to mention, more loan options including private and subprime options. And when you consider you get all this with no fees to yourself, it begs the question of ‘why wouldn’t you use a mortgage broker?’.
It is imperative to compare mortgage rates when shopping for a mortgage, however we recommend comparing mortgage professionals as well. Why settle when you can work with the best?