What’s the difference between banks and mortgage brokers if you’re going to be getting a mortgage anyway? There’s not one difference but several. Choosing banks or mortgage brokers to fund your next home is one of the most important steps in the process. It’s a choice that’s going to stick with your home for the foreseeable future: making the right choice for your situation cannot be understated.
Keep it local
No matter if you choose banks or mortgage brokers, you’re likely to find the best deal on a mortgage by staying local. This is especially true of the bank you normally do business with, as you probably already know everyone there. This can go a long way when a bank is choosing to accept or deny your application.
You already trust your bank
Why go to another financial institution when the one you trust the most also specializes in mortgages? The logic is sound at face value – after all, if staying local can be a benefit, getting a mortgage through an institution you trust sounds like a winning combination. Unfortunately, this isn’t usually the case.
Banks are not obligated to put your best interest first
While you trust your bank and the employees that work there, ultimately it doesn’t matter: the officer doing your mortgage paperwork and the team that approved you are not putting your best interest first. The Financial Consumer Agency of Canada (FCAC) states that there is an ever-growing risk of banks placing the interest of sales and monthly targets above the interest of the customer. Because much of banking is done online or via an app, banks are evolving into more of a storefront to push products and services. Thus, your bank’s loan officer is more akin to a car salesman than a financial adviser with your best interest in mind.
Mortgage brokers provide choice
A bank wants you to use their lender and product. On the other hand, a mortgage broker has access to hundreds of loans from a variety of different lenders. When you choose a bank, you’re robbing yourself of the opportunity to find the perfect mortgage for your situation. This cannot be understated: a mortgage broker – especially an experienced broker with a vast network to work with – will work with you to find a mortgage that fits like a glove. Since the broker is tasked with finding the perfect mortgage for your home, this is a much more personable, one-on-one process where the broker will fight for you rather than telling you what they can offer and ending the discussion there. Mortgage brokers are problem solvers, the best are knowledgeable of the latest trends, and most importantly they will have your best interest every step of the way.
Brokers save time and money
Mortgage brokers also save you time. If your bank didn’t pan out, normally you would need to individually sign up for each potential lender – not with a mortgage broker. The mortgage broker does all of the hard work for you and guides you to the best mortgage for you. They also save you money without any of the hidden costs you may get from choosing a lender on your own as mortgage brokers are offered loans at wholesale.
Got the mortgage? Now get the home. Reach out to Dunpar Homes today, and learn why we’re, ‘better by design.’