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Mortgage Brokers or Banks – What to Opt For2018-03-10T02:38:20-07:00

Previously, potential home buyers used to take up the services of their banks for different mortgage requirements. However, the trend has significantly changed with the emergence of various options including mortgage brokers.

Independent mortgage brokers are actually licensed individuals who employ the services of multiple lenders. They also have access to diverse mortgage rates. You get an opportunity to negotiate the lowest possible rate with a mortgage broker. Due to the availability of varied mortgage products, a broker can offer great discounts to you.

Working with a Bank

Banks are the most prominent choice to get a mortgage. The reason for this is that various mortgage products are normally offered at clients’ own banking institution. Your bank can offer maximum help in choosing a mortgage solution that is ideal for your needs.

As you already undertake different services from your bank, they are definitely more trustworthy and responsible. They are even able to offer better interest rates in some situations. They can add mortgage products to your current banking profile. Your personal banker can help you determine the most suitable tools and products.

A major drawback of taking up mortgage with a bank is that you are not able to negotiate much. Some mortgage programs are pretty conservative and prolonged. Furthermore, banks may charge you too much.

Working with a Mortgage Broker

A mortgage broker offers expert knowledge related to different mortgage products and services. He operates on your behalf and makes efforts to provide you the most flexible mortgage rates. In this aspect, there is much less negotiation or hassle on your part.

Mortgage brokers help you save your time, effort, and energy as you do not need to apply to different financial institutions on your own. They provide personalized services to you. They evaluate your financial situation to look for an appropriate marketplace that can best serve your financial requirements.

On the other hand, some mortgage brokers may make mistakes that can put your financial resources at risk. They may not have access to diverse mortgage products that potentially lower your options. Therefore, if you do not employ a reliable broker, you may end up with fake promises.

Buying a home is one of the most critical financial decisions a person can ever make. With decreasing interest rates, many Canadians are now in a position to fulfill their dreams of owning a home. The availability of different financial institutions including banks and brokers has eased the process of financing homes. The ultimate decision of choosing between a bank and broker largely depends on your requirements and interests.