As a Brampton mortgage broker, it can be frustrating to hear about the many misconceptions that people have about my services. While some people believe that mortgage brokers are not fully licensed and regulated in the same way bank brokers are, others believe that mortgage brokers have access to less lending options than bank brokers. It’s time to clear the air and reveal the truth about mortgage broker services so that you can make an informed decision when the time comes to take on a mortgage. Read on to find out the real differences and similarities between mortgage brokers and bank brokers.
You probably have heard of the new changes to the B-20 guidelines that were implemented on January 1st 2018 , and with these changes clients are becoming more and more unsure about what their mortgage broker can offer them. While many people believe that an independent broker does not have the same access to rates as a bank broker does, this is actually completely false. In fact, the opposite is actually true: mortgage brokers have even more access to different rates and lenders than a bank does. This is because bank brokers can only access their own rates, while mortgage brokers can access rates from multiple sources such as credit unions, monoline lenders, alternative lenders, private lenders, and tier 1 banks in Canada. This selection allows for shopping around to get the best rate as well as finding the best product for each client’s needs.
Another main difference that is often confused is the ability of mortgage brokers to negotiate on the client’s behalf. Many people believe that if they work with a mortgage broker, they will have to negotiate with their lender. This is not true! While a bank may ask the client to negotiate with the bank’s own broker, an independent broker will do the shopping around and the negotiating too.
A third misconception is that a mortgage broker aims to get the client to switch lenders on each renewal. This is false! Because a mortgage broker aims to find the perfect product to fit the client’s unique needs, this means they may choose to advise their client to stay with the same lender upon renewal. They will look at more than just the rate to decide on the best option to take. Your broker’s main goal is always to give advice on which product will be the best for the client, regardless of the lender. Another misconception is that the broker will benefit by receiving a fee if the client does stay with the same lender. This is only the case sometimes, and since this situation varies it is not the main focus.
Your mortgage broker is not out to swindle you – in fact we encourage continued contact in order to keep you updated on the latest mortgage advice, trends, and market changes. This method will actually help you save money and make informed decisions, so think twice when deciding on the services of a mortgage broker or a bank.
If you are ready to work with a mortgage broker who puts you first and will help you find the best deal, contact me today.