Do you know what the difference is between a bank lender and a Toronto mortgage broker? Understanding this can result in a lot of savings in the long-run and overall a more satisfactory experience with securing a mortgage. Here are 10 reasons why you should use a mortgage broker instead of a bank lender.
- Mortgage brokers have a large number of lenders available to them that can be used to get you the best mortgage for your needs. The more lenders that you have competing to provide you with the mortgage you ultimately choose, the higher likeliness there is that you’ll get the best deal for your needs.
- They’re specialists in getting their clients the loans they need and are commission-based–so they’re going to work hard to get you as much savings as possible.
- Bank lenders are going to get paid for their time with you no matter how satisfied you are the result, since they are paid a regular salary. This means they could have less motivation to do their work well.
- Because they’re specialists, brokers know how to get you the rates and terms that you need.
- Bank lenders, on the other hand, may work with loans of several types and may not have as much as knowledge on mortgages specifically.
- A broker will work one-on-one both with you and, once they have sent a specific loan request to lenders and been approved by one, with the lender. Close, personalized contact makes a difference.
- The lenders that brokers have in their network may accept loans that a bank usually would not accept.
- Lenders at banks ultimately, are more limited in their ability to secure a loan for you, as they can only get you one that their employer has created.
- These lenders also have to follow specific guidelines and criteria in their work with you, which is likely to limit the amount of loans they can provide as options.
- Since mortgage brokers don’t have to follow specific principles, they can make “deals” with lenders, such as getting you a decreased interest rate because they have created new business for the lender.
- A bank will not have unconnected lenders available for your needs either–every loan application is going to come from the same institution.
Contact me, Rakhi Madan Mortgage Agent, to get started on getting a mortgage broker working for you.
