Using A Mortgage Broker vs. A Bank
When it is time to get a mortgage, Canadians typically turn to one of two sources for securing financing: banks and mortgage brokers. Not sure whether to go with a bank or a mortgage broker for your new home purchase? If you’ve never gotten a mortgage before, it can be hard to know which is better suited to your needs. If you’re a first time home buyer knowing the differences can help you to make this important decision. A broker compares products from a variety of different lenders. A bank on the other hand will only offer you its own mortgage products. Let’s look further into the differences between the two and the benefits to you of working with a mortgage broker.
What Does A Mortgage Broker Do?
A mortgage broker is a licensed professional. They act as an intermediary who matches home borrowers with potential lenders in order to obtain the best possible mortgage terms for you, the borrower. A mortgage broker saves you time, effort, and potentially a lot of money, during both the application process and the life of your loan.
How this works is: the broker works as an intermediary between you, the borrower, and lenders in the real estate market. Whether you are buying your first home, a new home, refinancing your mortgage, or purchasing an investment property, a mortgage broker is responsible for presenting and qualifying you for loan options from many lenders for your consideration.
To do this, your mortgage broker sits down with you, their client, to assess your needs and financial situation. They gather all the pertinent information lenders require to obtain your mortgage, such as: proof of income, pay stubs, tax returns, details regarding assets and investments, credit reports, etc. This helps them evaluate what you can afford and then they take this information to the lenders for mortgage approval. Brokers are also responsible for all communication between you and the lender during the application and approval process. A good mortgage broker, such as at Prime Mortgage Works, brings valuable information and connections to the table providing convenience, the best possible rates, and avoiding multiple credit reports seen as how you are only working with one person.
What Are Some Benefits to Using A Mortgage Broker?
When it comes to securing a mortgage for the home of your dreams, you’re faced with so many options, one crucial decision is whether to work with a mortgage broker or go it alone. A mortgage broker is a regulated professional who acts as a middleman between you and mortgage lenders. The primary goal of a mortgage broker is to help you find the right mortgage taking into account what is right for you and your needs. Let’s delve into some of the benefits and advantages of why you should consider having a mortgage broker on your side.
- Mortgage brokers have access to multiple lenders.
One of the most significant advantages of working with a mortgage broker is access to a wide variety of banks and lenders. Your mortgage broker is your advocate, looking for the best possible terms. Your mortgage broker has access to multiple lenders, they work with banks, credit unions, and independent lenders. Mortgage brokers help you find the best loan for your needs, they compare products and policies from all the various lenders. They also know what it takes to get you the best loan from all the different lenders. This access to more lenders than you on your own have access to, saves you time, effort, and money.
- A mortgage broker’s commission comes from the lender, not the borrower.
Have you ever considered how a mortgage broker will need to be paid and how they earn their money? Most mortgage brokers are paid on a commission basis meaning that, for every mortgage they successfully complete on behalf of their customers the advisor then gets paid a commission from the mortgage lenders, not you, the borrower. This means that you don’t pay anything to use a mortgage broker. Many mortgage brokers are only paid when they successfully arrange your mortgage – if they are not successful they will not get paid. This makes them work harder to fulfill all of your terms and needs. The expertise of a mortgage broker makes your property purchase journey smoother, faster and more cost effective.
- Mortgage brokers can leverage relationships with lenders to get better rates.
Mortgage professionals have independent relationships with a variety of lenders. A broker gives access to lenders that you may otherwise not be able to contact directly to obtain your mortgage. That’s because some of them work exclusively with mortgage brokers and rely on them to bring them suitable clients. Brokers are able to get rates from lenders that are lower than you can get on your own, due to the volume of business they generate for the lender. Several different types of fees can be involved in taking on a new mortgage or working with a new lender, including origination fees, application fees and appraisal fees.
Your Victoria mortgage broker, Prime Mortgage Works, is able to get lenders to waive some or all of these fees due to their relationship with the lenders, which can save you thousands of dollars.
- Mortgage brokers have great relationships with local, trustworthy realtors.
A good mortgage broker, like your broker at Prime Mortgage Works, not only do they have excellent relationships with lenders. What’s often overlooked – and is just as important as interest rates – is the great relationship they have with local, trustworthy realtors. Real estate agents and mortgage brokers share several different skills and professional connections. This relationship is all about working together combining their knowledge to help clients and make your home buying journey easier and smoother. Agents and brokers team up early, planning how to help their clients reach their goals, they work together on offers, making sure everythings ready on time. They stay in touch, tracking progress and fixing any bumps along the way. If any issues pop up they work as a team to solve them, so that you don’t need to worry. From finishing paperwork to sealing the deal, agents and brokers team up for a great ending.
Interested in a quick quote on your potential mortgage? Use our easy online mortgage calculator.
Here’s Why A Victoria Mortgage Broker Can Be Better Than A Bank
Mortgage brokers work for you, bankers work for the bank.
Brokers are not limited in the products they can offer to you. Brokers can seek out the very best lender to suit your specific needs. Getting a mortgage through a mortgage broker is easier in the sense that you have someone helping you compare rates and handle the application and closing process amongst many other things. If you want to maximize your savings and ensure a successful property purchase partner with your mortgage broker at Prime Mortgage Works, we will help you find your dream property on time and within budget.
Mortgage brokers get a variety of rates and lending products which may not be otherwise available
The big difference between a mortgage broker and a bank is that a mortgage broker can provide you with mortgage products from several different lenders, while a bank can only give you mortgage options from their own company. Mortgage brokers have access to a variety of lenders and rates, which means they can find the best and lowest possible rate for you and any specific terms that you are interested in. Brokers have connections that are unavailable to you as an individual borrower, and even enjoy volume discounts since they regularly do business with a variety of lenders.
A mortgage broker in Victoria has access to discounted rates from lenders
A mortgage broker will already have a grip on which lenders are currently offering the best rate deals and what their terms are. Over the years your mortgage broker has built great relationships which help to build their business and more importantly help you, the client. These connections combined with experience and expertise, allow your mortgage broker to secure the best rate, product and terms favorable to you.
We work for you – it’s our job to get you the best rate possible
The mortgage broker at Prime Mortgage Works helps you find the best rate because we have access to multiple lenders , and can help you to find the best interest rates available on the market. This saves you money over the life of your mortgage, as even a small difference in interest rates can add up over time, For example a difference of just 0.25% on a $300,000 mortgage can result in savings of over $16,000 over a 30 year term making your mortgage broker an invaluable resource for homebuyers looking to secure the best possible mortgage deal. They save you time and effort, offer access to a wide range of lenders, and help you find the best interest rates available on the market.
By working with your broker at Prime Mortgage Works in Victoria you increase your chances of securing a mortgage that meets your financial needs and goals, securing the home of your dreams with freedom and ease. Additionally if you are a first time home buyer, a broker can help you to navigate the complex world of mortgages and provide you with a personalized and stress free experience in finding a product that fits your needs and budget.
Book a Consultation With A Victoria Mortgage Broker Today
Navigating the process of buying a home and securing a mortgage is stressful without the right advice. With so many variables and conflicting advice out there, it is difficult to know where to start, let alone know what is the best option for your situation. Mortgage brokers help make sense of it all and set you up for success. At Prime Mortgage Works, we are here for you every step of the way to answer all of your questions and guide you into your new home with personalized, unbiased, and objective advice so you get the best mortgage product possible.
Contact Prime Mortgage Works today to learn about securing your mortgage in Victoria.