Using a Mortgage Broker vs Your Bank
Today I'll discuss the 7 reasons it's better to use a mortgage broker vs just walking into your own bank.
Here we go...
When you go to your own bank, you have a choice of only their mortgage products and their rates.
While with a mortgage broker, you have access to mortgage products and rates of over 40 different lenders, giving you a selection and access to a multitude of products, the very best rates, and lenders, different underwriting guidelines which can impact what you qualify for.
Put it this way. If you were to walk into Starbucks and they only had one type of coffee, you probably go somewhere else, right?
This is the same as walking into your bank versus using a mortgage broker.
If you plan on putting less than 20 percent down and taking out a high ratio mortgage, CMHC made changes on July the 1st 2020 that reduces how much about qualifies for and the other two mortgage insurers did not.
As a result of these changes it could qualify you for about 12 percent more with Genworth or Canada Guaranty.
Mortgage brokers know which lenders to work with over CMHC and which work with Genworth and Canada Guaranty.
Your mortgage will explain the fine print of the mortgage in the terms and conditions which can save you money or likewise cost you money.
Did you know stats show, about 39 percent of homeowners pay out their mortgage early?
This can be for a number of reasons, including moving for employment, changing in the family makeup, wanting to take advantage of lower interest rates, looking to refinance, pay credit cards or higher rate loans.
If your mortgage is with a lender who charges a higher interest rate penalty, your penalty could be as much as three times higher than if it was with a lender who uses a fairer penalty clause.
If your financial situation is a little unique, don't worry a good mortgage broker will know the best lender for your set of circumstances.
Since brokers are independent of any of the banks. They offer a broad-based advice and help identify the best mortgage for you and your needs.
Mortgage brokers usually have more flexible hours than banks do and available to assist evenings and weekends.
Try and find the bank that can do that!
Probably my most favorite one; There is no cost to use in a mortgage broker as brokers are compensated by the lender or the bank.
As always, if you're looking for any guidance or help in the real estate world, please don't hesitate to reach out to me.
Or if you'd like to learn more about how a mortgage broker can help you personally please reach out to my number one mortgage broker referral partner Maureen Young by clicking the image below.