Why working with a Mortgage Broker is so important
Have you ever wondered why so many people are moving from going to their own bank vs dealing with a Mortgage broker?
Well – the difference is staggering:
When you work with a Broker vs going direct to one bank you:
1. Access to More Options
• Mortgage brokers work with multiple lenders, including banks, credit unions, and private lenders, offering a wide range of products.
• Banks like RBC or CIBC can only offer their in-house mortgage products.
2. Expert Advice
• Brokers are specialists in mortgages and focus solely on finding the best financing for their clients.
• Bank employees may lack the same level of specialized knowledge or focus on mortgages as they also handle other financial products.
3. Customized Solutions
• Mortgage brokers tailor solutions to fit your specific financial situation, whether you’re self-employed, a first-time buyer, or have unique credit challenges.
• Banks may have stricter requirements and less flexibility for unconventional cases.
4. Time Savings
• Brokers handle the comparison shopping for you, saving you time and effort.
• If you approach multiple banks, you’ll need to meet with each one individually and repeat the process.
5. Credit Protection
• A broker only pulls your credit report once to share with multiple lenders.
• Visiting multiple banks may result in multiple credit inquiries, which can impact your credit score.
6. Personalized Service
• Brokers often provide a more client-focused experience, offering flexible meeting times and availability outside of traditional business hours.
• Banks typically operate within standard hours and may not provide the same level of personalized support.
8. Unbiased Advice
• Brokers work for you, not the lender, so their recommendations are unbiased and based on your best interests.
• Bank employees represent the bank’s interests and are incentivized to sell their institution’s products.
9. Access to Alternative Lenders
• Brokers can connect you with non-traditional lenders if you don’t meet the banks’ requirements, such as private lenders or monoline lenders.
• RBC and CIBC only offer loans through their own underwriting processes and may decline applications that brokers can still get approved.
10. Help for Unique Situations
• Brokers specialize in finding solutions for people with:
• Poor or limited credit history.
• Self-employment income or non-traditional employment.
• High debt-to-income ratios.
• Banks often follow stricter guidelines and are less flexible for such cases.
11. Cost Savings
• Brokers can find products with lower fees and better terms and conditions to maximize savings as well as flexibility (e.g., no or reduced prepayment penalties).
• Banks often charge much higher fees for breaking your mortgage, account setup, as well as many other hidden costs
12. Assistance with Paperwork
• Brokers guide you through the entire mortgage application process, ensuring documents are completed correctly.
• At banks, the onus is often on the client to provide documentation and understand the process.
13. Pre-Approvals with More Confidence
• An experienced Broker will fully underwriter your mortgage pre approval – reviewing your full application, all documents and credit – so you can proceed with confidence – avoiding the 11th hour nightwear we see too often when one gets “pre approved in a branch”
14. Advocacy and Problem-Solving
• Brokers act as your advocate, helping resolve issues with lenders if problems arise.
• Banks prioritize their own processes, leaving you with less support in challenging situations.
15. Long-Term Relationships
• Brokers want to build long-term relationships with clients, staying in touch to help our clients save money and or maximize opportunities (even during your term)
• Banks may not maintain the same level of ongoing communication once the mortgage is secured as its not in their best interest to tell you how you can save money by switching to another lender.
By choosing a mortgage broker, you gain access to expert guidance, more options, better pricing, and personalized service, which results in significant savings and a better overall experience compared to going directly to a bank like RBC, CIBC, or whoever.
Like all things in life – always work with a Pro.