When dealing with one bank they have a few products that they have to offer and they will vary by rate, term and the privileges that the mortgage offers.
When you deal with a broker, they are looking across many financial institutions offerings and trying to find the best fit for what it is you are looking for. They are in essence a 3rd party to the deal and are working for you and not the bank. In some instances the broker’s rate from a particular lender can be better then what you can achieve on your own as they want the brokers business and the broker is representing you to the bank in the best light. The bank pays the broker a commission on the mortgage. The benefit to the bank is that the broker is producing all the information, forms etc. for the bank and therefore reduces the banks overhead costs. A further benefit to the bank is that the broker has pre-qualified you before presenting the deal to the bank.
If you have a great deal of history and relationship with a bank then it will be more difficult for a broker to better the deal.
Not all brokers are created equal and neither are the mortgages in Canada. It pays to do your research and make informed decisions.
8)
When you deal with a broker, they are looking across many financial institutions offerings and trying to find the best fit for what it is you are looking for. They are in essence a 3rd party to the deal and are working for you and not the bank. In some instances the broker’s rate from a particular lender can be better then what you can achieve on your own as they want the brokers business and the broker is representing you to the bank in the best light. The bank pays the broker a commission on the mortgage. The benefit to the bank is that the broker is producing all the information, forms etc. for the bank and therefore reduces the banks overhead costs. A further benefit to the bank is that the broker has pre-qualified you before presenting the deal to the bank.
If you have a great deal of history and relationship with a bank then it will be more difficult for a broker to better the deal.
Not all brokers are created equal and neither are the mortgages in Canada. It pays to do your research and make informed decisions.
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