Many people, especially first time home buyers, often ask this question. Many people simply follow the path their friends and family took when getting pre-approved for their mortgage. However, it is important that you well informed on the different lender options so you can make the best decision for your needs. So let's look at what the distinction between a Mortgage Broker and a Bank Specialist so you can decide what is best for you.
A Mortgage Broker is a licensed professional and are subject to a strict set of requirements. They work for you and they are not affiliated with any financial institution. This means they are they are able to provide you with independent and unbiased advice. This also means they are shopping a wide variety of products from various lenders on your behalf. Let's answer the common question, "who pays the mortgage broker?" Well they are considered freelance employees and they get paid not from you, but instead receive a fee/payment from the bank in exchange for for finding them a borrower. This means a broker can negotiate discounted mortgage rates on your behalf with each institution. Brokers are typically paid the same amount no matter what rate is offered to the client.
On the other side are Bank Specialists. They work for one particular financial institution, think TD Canada Trust, RBC, CIBC. They work off their institutions posted rates and negotiate these directly with yourself. They only have access to the specific products and rates offered by their institution. Bank Specialist's pay can be tied into the rate secured. Bank Specialists have the opportunity to allow you to consolidate your services with one provider however and may offer discounts over various products.
Here at Jump Realty our agents will give you honest advice on what course of action is best for you in their professional opinion and will always put taking care of your best interests first! With offices in Windsor, Tecumseh, Kingsville, LaSalle, Harrow, Chatham, and Leamington, no matter where you are, a Jump agent is ready to help. Please contact us for any housing needs and let us give you a better real estate experience!
