Mortgage Broker vs. Bank
Many people wonder how there is any difference between applying for a mortgage through a bank or through a Canadian mortgage broker. When applying through a bank, you are directly in contact with the lender. But there are many benefits of applying through a mortgage broker that many people are unaware of. Some of the key benefits are:
Educate and Inform
Your mortgage broker is well-versed in all the laws and regulations regarding your mortgage deal. They will be able to explain to you the various mortgage products that you can qualify for. In addition to that, they will also make you understand the clauses of your Canadian mortgage contract in detail. It is a part of their job to clear your confusions and answer all your questions as well.
If in case, you do not qualify for a mortgage, your broker can assist you in developing an action plan to help you improve your credit score. Your bank is certainly not going to offer any such services to you other than lending you money.
Your Canadian mortgage broker is more experienced in this field and may have handled many cases in their career. They will be more knowledgeable and will be able to offer useful advice regarding your case. In contrast to this, a bank will only play the role of a lender and will not be willing to offer any helpful advice to you. Even if you do get any advice from them, you will only get limited advice relevant to the limited number of products that they offer.
A Better Deal
A mortgage broker is in contact with several lenders and can match you up with the ones that offer low rates and a good mortgage package. As they have many lenders on their list and are experts at negotiating deals, they can offer to you a variety of choices of lenders and mortgage plans. They will also help you identify any fees that may be hidden in the legal documentation and paperwork.
Banks, on the other hand, offer a limited number of products and are not willing to negotiate on rates. They will offer everyone similar packages. When you directly approach a bank for a mortgage, you will have to negotiate on your own. Because you may not be as knowledgeable in this area, you may not be able to negotiate as expertly as a Canadian mortgage broker would.
The bank wants you to stay indebted to them in order to receive a constant flow of money from your side. That is why banks are usually not much help and will expect you to know the terms of your deal.
On the other hand, a Canadian mortgage broker will be willing to help you reduce your debt by reviewing the term with you several times in a year. As they will not be at a loss even if you pay off your debt before time, they will be willing to work in your best interests.