Updated: Jan 21, 2020
Of course, you can’t buy a home without securing a mortgage first. But that doesn’t mean you should sign on the dotted line with the bank just yet. In fact, there are many other (money-saving) ways to shop around for a mortgage than merely approaching your nearest financial institution – and working with a mortgage broker is one of them.
Here are six great reasons why partnering with a broker may be in your best interest:
1. Save Money
The first (and best) reason to partner with a broker? Savings! As expert “bargain hunters,” your broker will approach a variety of lenders, negotiating on your behalf to secure the best interest rate possible (potentially saving you thousands of dollars). Their pre-existing relationships with lenders also give them the ability to take advantage of exclusive financial discounts and incentives you may not qualify for otherwise.
2. Save Time
Why spend countless hours making appointments with lenders when you could be focused on more important things (like finding your new home)? Let a broker do the legwork for you. Not only will they spend time researching the best lenders to suit your needs, but they will work hard to find the right mortgage product for your unique situation.
3. Safeguard Your Credit Score
Shopping around from lender to lender eats away at more than just your time; it also eats away at your credit score. This is because every time you submit a mortgage application, the lender performs a hard credit check. Depending on the frequency and time frame, these inquiries can reduce your credit standing by several points. Mortgage brokers, on the other hand, will usually check only once – ultimately keeping your report in good standing.
4. Unparalleled Expertise
As we mentioned, it’s a broker’s responsibility to negotiate on your behalf. For this reason, you can rely on your broker to provide the advice and guidance you need to secure the perfect mortgage. Not only will they help you understand your current loan options, but they’ll also give you an unbiased opinion as to which product is right for you.
What works for one home buyer may not work for another. That’s why your broker maintains a vast network of lenders to choose from, including major banks, private lenders, credit unions and more. So, whether you’re self-employed, retired, a first-time buyer, etc., your broker will be able to align your unique needs with the right lender.
6. It Won’t Cost You a Thing!
A mortgage broker’s commission is paid by the lender, which means their services come at absolutely no cost to you. Additionally, most brokers depend on client referrals for business, which is yet another reason why you can trust your broker to act in your best interests. There is the rare occasion where you may have to pay a small fee (i.e. when working with a lender who doesn’t pay broker fees), but your broker will provide you with this information ahead of time.