The biggest mortgage decision: bank or broker?
If you’re like most Canadian homeowners, chances are you didn’t buy the first house you saw. You browsed some listings, you walked around some neighbourhoods, or drove around to find a few spots. Then you probably hit a few open houses, and you walked through several. Maybe even dozens. If you’re looking for your first home, you’ll likely do the same.
Buying a house is a big decision. You want to make the right choice. So when it comes to making one of the biggest financial transactions you’ll ever make – your mortgage – you might want to give it some serious consideration, too. So what will it be? Bank or broker? Here’s a little comparison that we hope will encourage you to shop around.
Available from a Mortgage Broker
Available from a Bank
|Mortgage Choice||Over 50 lenders, including most of the major banks, credit unions, and national, regional and private lenders. Some lenders specialize in mortgages for self-employed homebuyers or those with past credit problems. Brokers work with multi-home clients, first-time buyers and every kind of client in between.||Every bank has its own menu of house mortgage products.|
|Mortgage Rates||Mortgage brokerages negotiate discounted rates with lenders, and have access to rate promotions and unpublished rate specials. In fact, your mortgage broker may be able to get you a better rate from your own bank.||Rates are set by the Bank. If there’s a better deal in the marketplace, you won’t know about it unless you do your own homework.|
|Independence & Objectivity||A mortgage broker works for you, not any one lender. If there is a better mortgage for you in the marketplace, your mortgage broker can find it!||Naturally enough, bank mortgage specialists are there to build business for the bank.|
|Ongoing Service||A mortgage broker will keep in touch with you after your mortgage closes and conduct annual mortgage reviews. At renewal, your broker will go to bat for you again – to make sure you have the best product and rate.||You will get an annual statement and a notice for your mortgage renewal. You may have to proactively contact your bank if you want to discuss renewal options. You may not get the best deal at renewal.|
|Mortgage Advice & Strategies
|Brokers usually offer ongoing advice to help you make the most of your mortgage years by showing you how to pay off your mortgage faster, power down any other debt, buy your next home, finance any renovations, or invest in property.||No proactive advice is typically provided and you may not be dealing with a licensed mortgage specialist.|
|Cost||Mortgage brokers are paid directly by the lender that funds the mortgage, which means no cost to you in the vast majority of cases.||No cost.|
Time to buy a home or renew your mortgage? We can help!