1. Options
Mortgage brokers have a database of lenders and mortgage rates and they will do the shopping around for you. A bank is limited, and can only offer you theri own line of products and rates. Brokers may be able to negotiate a better rate for you than your bank depending on the lender.
2. Service
Brokers do not represent any one lender so they are able to give independent advice based on your best interests. Brokers will look at your long term goals and find ways to save you money and pay off your mortgage faster. If you can’t make it to an office during business hours, you may be able to arrange with a broker to meet you at your home in the evening. Don’t be surprised if you hear from your mortgage broker during the term of the mortgage if there are possible benefits to switching lenders, it could mean long term savings for you.
3. Speed
When you have an accepted offer, there is a limited amount of time to get a financing approval. When you work with a great mortgage broker, they are focused on getting back to you as soon as possible. They are able to run numbers and scenarios for you on the weekend, which is often when you’re making decisions about real estate.
4. Credit Reports
If you shop around by yourself, your credit report may be pulled multiple times (once at each lender you go to), which could negatively affect your score. Brokers will only pull your credit score once and if your credit score is low, a broker can give you advice on how to bring the score up.
5. Penalties & Fine Print
Whether you want to pay off your mortgage before the fixed term is up, port your mortgage to a new property, or have someone else assume your mortgage, a broker will be able to navigate the fine print of every lender. In our experience, banks typically have the largest penalties to break a mortgage compared to lenders that only brokers have access to.
6. Advocacy
When you have a broker who really knows the ins and outs of your situation, employment, income or business revenue, they are able to go to bat for you to ensure your mortgage is approved. A great broker will have relationships with the people who underwrite the mortgages at various lenders and this can work to your advantage.
7. Location
We also want to note that it’s important to work with a mortgage broker who is local to your market. There can often be property anomalies in certain areas that can impact your ability to get a mortgage, and a local broker is best to help you navigate these. They also have relationships with local appraisers and can sometimes get a faster turn around than some of the internal channels the bank uses for their appraisers.
If you need a recommendation to a mortgage broker in your area, please reach out to us as we are happy to connect you with someone we trust.