So you have found the perfect first home, congratulations! After the long search, it may seem like the hard part is over. But in fact, the next step of finding a mortgage can be an overwhelming process. While some home buyers rely on their banks to help them set up a mortgage, more and more people are seeking out mortgage brokers for support. To help you decide what’s right for you, read on to find out the difference between finding a mortgage through your bank versus a mortgage broker.
Mortgage brokers are a well rounded choice for first time buyers as they are experts in everything from helping you budget for your mortgage to finding the best deal for you. Another great thing is mortgage brokers are provincially licensed and regulated by the CMBA so that you know you are getting top quality service. Compared to a bank, mortgage brokers have access to a wide range of money lenders, so you can shop around for the best deal. Many banks only have one or two options which can cause you to end up with a high interest rate or harsh penalties for breaking the mortgage contract.
Along with being an expert on all things mortgage, the mortgage broker will have the time to get to know your needs so they can tailor a mortgage product for you. Because of their connections, a mortgage broker is more likely to find a product that fits your lifestyle than a bank would. Another difference is mortgage brokers are paid on commission by the lenders themselves and not by the customer, so that means there are no extra costs for you. A broker seeks to provide the best service possible as referrals are important for business.
All in all, a mortgage broker may be a better fit for those who want some choice in the mortgage process. For help with finding the perfect mortgage product in the GTA, contact me today.