26 October

Mortgage brokers or banks – tough decision

Until now home buyers used to turn to the bank for mortgage needs, but not anymore. Thanks to the growing presence of mortgage brokers, Canadian military have more options on their hands than ever. Since you want to get the best rate and, not to mention the best deals, you have to make a wise decision about how to collaborate with: a broker or the bank. Before reaching any decisions, it is important to weight the pros and cons.

Dealing with the bank  

The only difference between a loan officer and a mortgage broker is that the loan officer works for a bank, while the mortgage broker is independent specialist. The role of the loan officer is to have a discussion with you with the purpose of finding out which are your interests and to figure out solutions to get a loan that best fits you. Compared to working with a broker, you will deal straightly with the bank and the likelihood is that you may not receive better terms and interests unless you are a regular costumer. Therefore, you should look around to find other deals. This is a daunting task because you will be required to compare rates and terms on your own. Not to mention that you are the one carrying out the negotiations.

The mortgage broker

The mortgage broker is basically a freelancing agent that acts as an intermediary between you and the lender. Not only are they experts in mortgage rates and interests, but they also have a better understanding of the market and of the institutions that offer the best deals. The main advantage of collaborating with a broker is that he is able to save you important time. They shop around for deals, they negotiate on your behalf and they even take care of the paperwork for you. While collaborating with someone you hardly met seems risky, the truth is that brokers do whatever it takes to get your loan approved and get you a better rate. As opposed to the bank, they are actually acting in the client’s best interest.

The obvious conclusion

Although there are pros and cons to both options, collaborating with a broker is the answer you are looking for. By getting to know you, the broker is able to assess your particular needs and advise you which lenders are suitable for your individual circumstances. In addition to this, they are capable of working miracles for people who experience problems with poor credit rates. The only downside is that you will have to pay the professional to represent your interests, Nonetheless, it is worth it considering that the market is so complex.