The Pros and Cons of Using a Mortgage Broker

When you’re looking to get a mortgage, you’re likely to think of going to the branch of your local bank to talk to someone about mortgages. It was once a standard procedure, but these days it could be a mistake. The reality is that in Canada, mortgage brokers are more sought-after than ever before, and often are a good choice for those seeking the lowest mortgage rates.

Whether you’re buying your first house or if you’re an experienced homeowner, getting the lowest rate for your mortgage cannot be overemphasized. A 0.1 percent reduction in the rate of your mortgage could save you thousands in interest costs throughout the duration of your mortgage, giving buyers more purchasing power in the present. If mortgage brokers are able to provide you with a better rate, then you must take a look.

How do you define a mortgage broker?

Mortgage brokers are a one-stop-shop for mortgages. Contrary to the local branch, your bank that can only give you the possibility of a mortgage (and the mortgage rate) through ONLY their variety of offerings. Mortgage brokers can connect you to a variety of different lenders. When you schedule your appointment our mortgage brokers here in Calgary, it’s just like setting up an appointment with the top bank, credit unions, and trust companies, with the advantage here being that you’re only going to have to speak with one person.  A mortgage broker is able to have access to products from a variety of banks and lenders all across Canada. This means that you will have access to all these mortgages right here in Calgary!

Mortgage brokers are able to get bulk discounts from large lenders. This helps them obtain a mortgage rate that is less than what you could negotiate on your own with the same bank.

When your personal financial circumstance are a little unusual, don’t be concerned. A mortgage broker’s role is to find the most suitable loan for your particular financial needs. This means if you are an independent contractor or have had problems with credit in the past and need to get a mortgage, a mortgage broker will help you get the right mortgage. If you’re having difficulty getting the mortgage you want yourself, our reputable mortgage broker might be able to use their connections with lenders in order to secure an approval.

The Pros and Cons of using a mortgage broker in Calgary

Why should you pick a local mortgage broker here in Calgary over your bank? We believe that using a broker is generally a good choice for the majority of Canadians. We’ve broken down the pros and cons of mortgage brokers, so you can decide on your own.

Let’s look at some more details about the advantages of working with a mortgage broker here in Calgary.

Benefits of working with a mortgage broker

Easy:  Getting in touch with a mortgage broker is super easy. In most cases, you’ll only need only one appointment, and it may be by phone, whichever is the best option for you. All documentation required is usually delivered via email, which further streamlines the procedure.

Free: You don’t have to be paying a dime for your mortgage agent each time you make use of their services. Instead, they’re paid through the mortgage lender.

Lower rates: Many mortgage brokers are offered bulk discounts from their top lenders, meaning you’ll be able to get better rates than what that you can get if try to negotiate with your lender.

The ability to access more lending institutions: If you seek an mortgage with the credit union or bank they only give you access to the services they provide on their own. If you work with a mortgage broker you’ll have access to hundreds of lenders.

Independent: Because brokers aren’t tied to any particular lender and do not be employed by individual lenders, they are able to provide unbiased advice on a vast variety of lenders. They are also able to guide you on what mortgage options are best for your situation.

The disadvantages of working with a mortgage broker

Inexperience: A majority of people have never worked with mortgage brokers before so the experience of talking to someone strictly about mortgages can be new.

Some lenders are not accessible to you: Certain lenders are not able to have a relationship with mortgage brokers therefore, if you have one particular establishment in your mind, make sure the mortgage broker is working with them

Should you work with a mortgage broker here in Calgary?

The process of working with a mortgage broker comes with almost no disadvantage since you’re not required to submit the mortgage request until you determine the mortgage rate you are able to obtain and with the lender you’re interested in. If you do it right, you’ll save thousands of dollars in interest charges on your mortgage. In the worst case scenario, you’ll receive free honest guidance that is tailored to your financial needs.