Why use a mortgage broker?

You're ready to buy that home.  Your next step is to go to your local branch of one of the big banks, right?  Or do you just apply for a mortgage online to get the best deal?

The answer is: neither.  That is, unless you have lots of time and expertise to comparison shop and negotiate the best terms and rate for you.  For most of us, a mortgage is the single biggest debt we will ever take on.  Whether you're borrowing for the first time, or refinancing an existing mortgage, studies show that negotiating and shopping around can save thousands of dollars over the life of your mortgage.

So what can a mortgage broker do for you?

Here are seven ways we can help:

1.  We have negotiating power
Brokers deal with multiple competing lenders and can often access exclusive rates. We also have the power to negotiate rate discounts from lenders, which we pass on to our clients.

2.  We give you choices and knowledgeable advice
You don't need to become a mortgage expert.  Brokers offer consultative service, advice and solutions that are customized to each client’s needs. And unlike banks, we work for you.

3.  We save you time
We will work around your schedule to make the transaction as quick and easy as possible.

4.  We save you money
In most cases, our professional advice and assistance is free! We're paid by the lender for placing you with their products.

5.  We pre-qualify you
Whether you're shopping for a new home, or refinancing your existing mortgage, we can help you obtain a pre-approved mortgage, often with up to a 120-day interest rate guarantee, to protect you from rising rates.

6.  Preserve your credit rating
When you shop for a mortgage, there is an accumulation of lender inquiries on your credit bureau report, possibly affecting your credit rating and, ultimately, the rate and terms of your mortgage. This isn’t the case with a mortgage broker, who only does one inquiry yet can still get many competing lenders to quote on your business.

7.  Peace of mind

The Canadian Association of Accredited Mortgage Professionals has a stringent Code of Ethics that members are required to adhere to in order to retain membership.

If you have any questions or comments for me, I would love to hear from you! 


Photo credit: [c] Michael Jastremski for openphoto.net