The Benefits of Using a Mortgage Broker
Why dealing with a mortgage broker is better than the bank.
Taking out a mortgage is a significant decision that can have a long-lasting impact on your finances. When it comes to securing a mortgage, you have two primary options: dealing directly with a bank or hiring a Mortgage Broker or Agent. While some homeowners attempt to do it themselves, there are clear benefits in working with a Mortgage Broker to secure a mortgage. In this article, we dive into some of the reasons why.
Expertise and Advice
Navigating the ever-changing and complex mortgage market can be challenging, even for the well-informed. Without the requisite expertise, securing the best mortgage for your needs can seem like a minefield. This is where Mortgage Brokers can step in and offer invaluable advice. As regulated professionals, Mortgage Brokers must complete mandatory training and qualification as well as yearly licensing renewals, which equip them with the knowledge to interpret financial regulations and lending criteria. A Mortgage Broker can offer in-depth knowledge of the current mortgage market and advise you on the best mortgage options based on your specific circumstances.
A Wider Range of Options
One of the most significant advantages of using a Mortgage Broker is the opportunity they provide to access a wide range of mortgage options. Working with a bank means that you only have access to their specific mortgage products, and must meet their specific requirements. A Mortgage Broker, however, can provide you with mortgage products from an array of lenders, which gives you more options and better chances of approval. A Broker may have partnerships with various lenders, including some which may not be accessible to the public or all individuals. Therefore, a Mortgage Broker can take into account your financial circumstances and offer a range of options to choose from to better suit your specific requirements.
Negotiating Power
Mortgage Brokers have the expertise and network to negotiate the best mortgage rates and terms on your behalf. Working with a bank, you are subject to the interest rates and terms they offer, and it can be challenging to negotiate better terms. A Mortgage Broker has the power to secure better rates due to their ability to negotiate with multiple lenders in exchange for bringing in clients for that lender.
One Stop-shop
Securing a mortgage involves a lengthy and intricate process. Dealing with a bank directly can involve lots of time-consuming meetings and attending appointments at different branch locations. Not to mention, you are usually stuck waiting for multiple levels of approval within the bank before you get an answer, which delays the process. A Mortgage Broker can offer a one-stop-shop solution to save you the hassle and time of shopping around. Mortgage Brokers help take some of the burden and legwork off of the clients, by liaising with their lawyers, lenders, or any other necessary parties involved in the transaction, leaving you more time to focus on other important aspects of your life.
Personalized Service
When dealing directly with a bank, you might feel like just another customer. Banks often prioritize hitting profit margins, which means the product they offer may not align with your best interests. In contrast, a Mortgage Broker provides personalized service tailored to your specific needs. They take the time to understand your financial position, lifestyle, and goals, offering individualized advice that caters to your unique situation. The intention of a Mortgage Broker is to find the best option to save you money, prioritizing your financial well-being over the bank's profits.
More Saving
Thanks to their knowledge of the mortgage market and negotiating power, working with a Mortgage Broker can save you money. By working with multiple lenders, a Mortgage Broker can source competitive mortgage rates and terms, which ultimately results in savings. With the right Mortgage Broker, you can obtain competitive mortgage rates that can save you thousands of dollars in interest over the life of your mortgage.
No-Cost Brokerage Consultation
Most Mortgage Brokers offer free consultation services. During these consultations, a Mortgage Broker will get to know you and your situation, talk through your options with you and answer any questions you might have about the mortgage process. They help you understand your options so that you can make an informed decision.
Conclusion
A Mortgage Broker brings valuable expertise to the table, offering objective advice to help homeowners make informed decisions. A Mortgage Broker also gives homeowners access to a wider range of mortgage options, helps them negotiate better interest rates, and offers a one-stop-shop that saves time. Ultimately, using a Mortgage Broker can save homeowners money and provide them with a more personalised experience.
