Bank representatives typically have only a few mortgage products available. Independent mortgage brokers have access to many lenders (various banks, credit unions, trust companies and private lenders) to help you put together the mortgage that works best for you!
Although almost everyone wants a mortgage with the best rates, terms and conditions possible, yet many people still take the mortgage product offered by their bank without shopping around. However, when dealing with a bank, you are only negotiating with one lender and only for their limited line-up of products. Even if you have been a long time customer of a bank, it does not mean you will be offered the best rate or product possible.
Long-held beliefs sometimes include the idea that mortgage brokers are only for people who have bad credit or were turned down by a bank. Unfortunately, anyone with this kind of outdated thinking could be losing thousands of dollars! All homebuyers and homeowners can save time and money by enlisting the services of a broker.
I have years of experience in the financial industry and know how to keep my clients happy. It starts with listening to them so as to better understand their situation and their needs. Not every borrower is the same and many face challenges. My financial background allows me to examine all available mortgage options to determine which one best suits a particular need. I
have access to many competing lending institutions, including banks, trust companies and even private individuals. Widespread access to lenders guarantees a completely unbiased recommendation every time with only the best interest of the client in mind. There are other potential cost savings. For example, a particular lender may have a special rate offer for a specific mortgage term. If you are rate-shopping on your own and don’t know who is sponsoring the offer, you can’t take advantage of the special pricing.
At mortgage renewal, many homeowners take the renewal quote and choose a term and rate offered by the lender without realizing that a mortgage broker may be able to save them up to one percentage point off the posted rate. This can translate into thousands of dollars in savings over a five-year term. To ensure you get the best rate, just call me at 416-674-2318 four months before you renew an existing mortgage or consider a new home purchase. Starting early can be a money saver because a broker can usually guarantee an interest rate for 90-120 days. Should rates drop in the meantime, you would of course get the lower rate.
If your credit rating is important to you, then you also need to consider that when you take it upon yourself to shop from lender to lender, there is an accumulation of inquires on your credit bureau report, affecting your credit rating and ultimately the rate and terms of your mortgage. This is not the case with me, since with a single inquiry I can obtain many competing lenders to quote on your business.
Finally, fees payable are an important misconception that should be clarified. Some people think that using a broker will be costly and that there will be an upfront fee. In most cases, there is no fee at all because the lender that provides the mortgage pays the broker’s fee for obtaining the business. As you would expect, a fee may be charged to clients with impaired credit or when private money is used, although this compensates for the time and effort required to negotiate the mortgage.