TOP REASONS WHY MORTGAGE BROKERS ARE BETTER THAN BANKS
Brokers are Better? What does that mean anyway? Great question.
In this article, you shall find out the top reasons why mortage brokers are better than banks and you you want to work with a mortgage broker when buying or refinancing a property.
Brokers have access to MORE PROGRAMS. Low credit score? Brokers have programs for that. Write off all your income? Brokers have bank statement programs for that.. you get the point.
Brokers can bring your loan to multiple banks and SHOP THE RATE FOR YOU! This saves you STRESS and TIME! Sometimes, brokers can even bring it to the bank you’re already working with and get you a better deal!
Brokers are independent. They are not biased on which lender you should work with. Brokers don’t care. Our number one job is to get you the best rate at the best price.
All of these save the clients money.
While they may offer competitive rates at times, right now brokers have much better rates than the banks. However, they have certain advantages which allow them to blow the banks out of the water most of the time.
TOP REASONS WHY MORTGAGE BROKERS ARE BETTER THAN BANKS
– More Choice
Banks are limited to around 5 products that they can offer you. They will try to fit you into one of their products even if the financial institution next door has a better one for you. Brokers have access to banks, credit unions, trust and mortgage companies as well as private lenders.
– Better Representation
Brokers are your champions bankers are employees. They put their employer first . They won’t offer you the best rates unless you are a good negotiator.
Brokers are licenced by provincial organizations and have to follow a code of ethics which requires that we put the consumer first.
We also negotiate the best rate, terms and conditions for you. If you need to break the mortgage before the end of the term, we can assist you with that and perhaps help you to avoid paying a penalty.
– More Benefits
If you are moving into a home that is more than one year old, you probably do not have a home warranty. Brokers have 3 lenders who offer home warranties, which can cover repairs to the plumbing, heating and electrical systems with a small deductible. Two of the lenders even offer this as a complimentary service for the first year while the third lender offers it for the length of the mortgage.
– Better Protection
Brokers offer portable mortgage life and disability insurance.
It may not sound like much but we have the same coverage as the banks offer with one important difference – portability. While we take care to place you with a good lender, circumstances change and lenders may not offer favourable terms on renewal.
If you try to leave a bank after developing a condition like high blood pressure or having a heart attack, you will have to re-apply for insurance coverage and may be denied. There are hundreds if not thousands of unhappy bank clients who are stuck paying high interest rates because they are forced to stay with a lender.
Broker insurance gives you the independence to move from lender to lender depending on who is willing to offer you the best rates and terms. This may not sound like much to you now but it’s a real game changer for anyone who knows someone who have had this happen to them.
For most people, buying a home or an investment property are the biggest financial investments of their lives. A mortgage broker can help streamline the costly and confusing process, while saving you valuable time and money.
– Simplifying the home loan process
While this is an overwhelming first-time experience for you, your mortgage broker can efficiently guide you through the entire process, from the application to the property settlement. With their assistance, you can handle all the complexities of paperwork and legal details. They can also give you the right advice to ensure your application is approved promptly. As a result, you have the peace of mind of delegating the process to an expert who will keep you informed every step of the way.
– Fast comparisons
With so many banks and lenders offering different deals, it can be difficult to figure out which is the right loan for your situation. While a bank will only promote their own products, your mortgage broker has the experience and the contacts to compare a wide range of lenders and products, to identify the right package for you, based on your individual situation. They can decipher the financial jargon for you and explain the pros and cons of various home loan features, so you can confidently make an informed choice.
– Direct service
As your mortgage broker regularly works with various lenders, the application process can be several days faster than going to a bank directly. Best of all, you are dealing with one point of contact, rather than whichever member of the bank’s credit team takes your call. This gives you the benefit of securing the loan features that are best for you, based on your circumstances.
– Better value from your property investment
When an expert oversees your choice of loan, you reap the long-term benefits of better interest rates and the right flexibility for your personal situation. The right loan can take years off your mortgage while cutting down your interest payments.
In comparison to the significant savings, the cost of a mortgage broker’s fee is negligible. In the US and UK, mortgage brokers charge around 1-2% of the total loan, while in Australia, mortgage brokers are paid by lenders so there is no cost to the client.
– Specialized assistance
If your situation is a little more complex than a standard home purchase, a specialized mortgage broker can help you through the process. Whether you need assistance with property investing, commercial properties or a hobby farm, there is a mortgage broker who knows exactly how to help you. There are also mortgage brokers who specialize in assisting people with individual challenges that might deter lenders, such as bad credit, non-residential status or contract employment.
Is it difficult to compete with the banks? No – we have them beat hands down.
For more information about securing the right loan for your circumstances, contact your mortgage broker today.