WHY USE A MORTGAGE BROKER
What Is a Mortgage Broker?
To understand the advantages of working with a mortgage broker, it helps to understand what it is we do.
In short, a mortgage broker is an independent, licensed professional who specializes in providing the best mortgage-related products, rates and advice for their clients (that’s you). Whether you’re buying, refinancing or renewing, as professional bargain hunters, it’s our job to approach our network of lenders, negotiate on your behalf and secure you the best product and rate possible.
Other broker-provided services may include:
Investment Property Programs - Helping you make the best decisions on all things investment-related
Commercial Lending Assistance - Simplifying the process for current and future business owners
Life Insurance - A wide range of products and advice to help you and your family feel safe and secure
Why Use a Broker?
As brokers, it’s our job to represent you, not the lender. And, because we work independently, we’re not limited by products, rates or conditions. This means we can shop around on your behalf, approaching different lenders until we’re able to find the perfect product for your needs – whether it’s through a major bank, insurance company, private lender or otherwise. It is through this process, we’re able to save our clients significant amounts of both time and money.
Save Time – With so many mortgage products available on the market today, shopping around for the best deal can be both frustrating and time-consuming. In addition, the mortgage application process itself can be both lengthy and hard to navigate without the proper expertise to guide you. For this reason, it pays to enlist the help of a broker who will do the legwork for you.
Save Money – Choosing the wrong mortgage product will cost you. For this reason alone, its imperative to partner with a trained professional whose negotiation skills have to capacity to save you thousands over the lifetime of your mortgage.
How Can a Broker Help Me Secure the Best Rate?
Thanks to their network of lender relationships, brokers are privy to a variety of different interest rates. They also have a keen sense of which applicants and property types are likely to be favoured by one lender over another (everyone’s situation is unique). In fact, some lenders will only accept broker-submitted mortgage applications and will not work with homebuyers directly.
Interest rates can also be extremely volatile, as can a lender’s preferred choice of product(s) and the conditions outlining them. For instance, an institution looking to diversify its portfolio as it relates to a specific type of product may opt to change their rates and conditions in order to attract a particular type of client. But, thanks to your broker’s forged lender relationships, he or she will know which lender to approach on your behalf – guaranteeing you’ll receive the best possible rate at that time.
Are There Other Reasons to Use a Broker?
In addition to saving you time and money, brokers are market experts. They also know there’s a lot more to negotiating a great mortgage contract than securing the lowest rate. For instance, a broker has to know which lender to approach and when, what conditions to look for and much more.
Other benefits of working with a broker include:
Limited to no cost to you
Unlimited guidance and advice
Access to exclusive deals and add-ons
Should I Go to a Broker First?
Yes! And here’s why:
Part of your broker’s job is to provide a professionally presented loan application to the lender. This is extremely important as successful mortgage approvals often hinge on how the proposal is presented and to whom. Secondary applications take longer and are likely to be costly, so why risk it? Ensure the job is done right the first time with the help of a broker.
Do Brokers Only Specialize in Residential Mortgages?
A broker’s expertise doesn’t just stop at residential mortgages. From smaller home-based loans to large multi-million-dollar commercial property registrations, an experienced broker will deal in leasing loans, business loans, collateral and vehicle loans and everything in between. All you need to do is fill out our quick and easy application form below to get started.
The Edmonton Broker also specializes in refinancing, renewals, life insurance and much more. For more information on the products we provide, be sure to visit our Services page.
How Do Brokers Secure Better Deals?
Brokers work with a variety of lenders, including chartered banks and trust companies, private pension funds and corporate funds. For this reason, banks tend to favour working with brokers as brokers provide them business. Banks also understand that, in an attempt to secure their clients the best deal, brokers will shop the entire mortgage market until they find the right product. As a result, banks will offer brokers a lower mortgage rate than they would to the client directly, as a means of attracting more applicants.
Can I Still Go Through My Bank AND Use a Broker?
Absolutely. Here again, we recommend talking to a broker before approaching your bank as they’ll likely be able to secure you a better mortgage rate.