When looking at mortgage options, virtually all consumers will consider using a mortgage broker or at least want to better understand what a mortgage broker can do for them.
As the mortgage industry has expanded, brokers have become a key method for lenders to get their product into the market.
Lets face it, not all mortgage companies have the marketing budgets and branding power of the Canadian chartered banks. But when it comes to the comparability of their mortgage products to the big banks, many of the small players can have as good if not better rates and terms.
So that’s really the first major benefit of a mortgage broker … broad market access.
The mortgage broker has access to lenders you may not have even heard of, but that are still offering a mortgage product you may be interested. So instead of searching high and
low for all these different competitive offers, you have the convenience of tapping into most relevant offers through one application via a broker.
And remember that when you go into a bank to get information about a mortgage, you are only going to be looking at their programs. In order to get any type of accurate or meaningful comparison, you’re going to have to repeat the process several more times with other banks and mortgage lenders.
Another problem with the do it yourself approach is that its difficult to tell from the outside looking in, what lenders will be interested in your application. If you make an application and get declined, how do you know which lender to go to next?
When you start applying at several places, you also will receive a credit inquiry for each application made. Not only can this be potentially damaging to your credit, it also can send out a message to next lender that you may have been declined a number of times already and are not a good risk.
If excessive credit inquiries end up lowering your credit score, you may suddenly become ineligible for certain mortgage programs that you would have otherwise qualified for.
Experienced brokers manage this situation for you by only generating one credit inquiry and reusing it for each application they make on your behalf. The best brokers will also only focus on those lenders that are most relevant to your situation, greatly increasing the potential of generating the best options quickly.
With the use of the internet, email, and phone, your communication with your broker can be done from wherever you choose and when ever its convenient to you without valuable time being lost going back and forth to a lenders place of business.
Once you have a mortgage, you will need to renew the interest rate at some point in the future. And unless you know how to shop around for comparable rates and terms, its unlikely that the existing lender is going to offer you the lowest cost option in the market, resulting in you paying higher rates.
Mortgage brokers that also do a large volume of business can have access to lower rates from lenders based on volume allowing them to offer you terms that smaller volume brokers don’t have access to.
Mortgage brokers also have the benefit of dealing with 100’s of different applications involving a multitude of different lenders. Their advice can be invaluable in getting the best deal possible and voiding less obvious things that you may not have considered on your own.
The benefits can be considerable and the draw backs, few if any.
I'm a Toronto Mortgage Broker that arranges mortgage solutions on residential and commercial real estate property. With over 30 years of mortgage financing experience, I'm able to quickly assess your financing requirements and provide relevant solutions for your immediate consideration. Joe Walsh Google+ YouTube Channel