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Free Professional Advice

Why choose Micah? Because I provide valuable professional advice and it’s FREE!

Why pay more than needed? Get my rate specials. Let me negotiate the best rate for you and save money.

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Best Rates

Let me shop the major banks and top lenders for you.

Let me negotiate the best rate. Remember I work for you, not the banks.

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Get Approved

My approval rating is high.

With my portfolio of lenders, I can find you a program that works for you.

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Savings

Lower rates equals thousands in savings.

Why pay more than needed? Get my rate specials. Let me negotiate the best rate for you and save money.

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Availability

When the banks are closed, I am not.

I work for you and I am at your service 7 days a week.

Blog by Micah Verceles

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Working With A Mortgage Broker


Working Directly With a Bank vs. Working

With a Mortgage Broker When it comes to applying for a mortgage, Canadian consumers have two options; work directly with a bank or enlist the help of a mortgage broker. Depending on your wants and needs, either option can provide you with the support you need, whether you’re a first-time home owner or a seasoned expert.

Keep reading to learn how to differentiate between working directly with a bank and working with a mortgage broker and to determine which option is best for you.

Banks vs. Mortgage Brokers

Traditionally, when buyers are ready to purchase a home, they look to their bank for a mortgage, often because they think that’s the best or easiest option. While this may be the case for certain consumers, more often than not, using your bank isn't the best solution.

Why? Because banks will only provide you with what they have to offer. It's sort of like being limited only to one store to buy clothing, electronics, or any other type of consumer product. There's no option to shop around and compare products and prices.

Furthermore, banks often have limiting business hours, rotate through employees quickly, and can feel less personal.

Mortgage Brokers Provide More Options

On the other hand, mortgage brokers allow you the freedom to shop around to see what various lenders have to offer. Instead of just being limited to one bank and the products and rates that they can offer, mortgage brokers offer you the flexibility to see what else is out there that might better suit your needs.

In addition to more options, a broker is working for you, which means not only are they your personal financial advisor, they’ll be available in the evenings and even on the weekends should you have any questions or concerns.

Here are just some of the reasons why mortgage brokers are the best way to go when you're ready to apply for a mortgage.

Is the lowest interest rate always the best option? Find out here.

They Do All The Legwork For You 

You always have the option to shop around and compare all your options on your own, but this can be very time-consuming. Visiting various lenders to find out what they have to offer can take up a lot of your time and requires considerable effort. Besides, it can be difficult to understand all the nuances of different mortgage products for those who have little experience in this realm.

Why go through that when you can have a mortgage broker do all the hard work for you? Not only will this save you time, but it can also save you some money when they find you the best product with the lowest fees and rates.

They'll Find The Lowest Rates

One of the most important factors to look for in a mortgage and a lender is the interest rate being charged. Even a fraction of a percentage can translate into thousands of dollars saved over the life of the loan.

If you can find a mortgage product with the lowest interest rate, you can save yourself a significant amount of money in the long run. Lenders and banks have a tendency to offer mortgage brokers discounted rates because they are competing with each other to get your business. In the end, you're the one who comes out the winner.

They Negotiate On Your Behalf

Just because a bank or lender advertises a certain rate, term, and fees doesn't necessarily mean you have to accept it. Instead, there's always the option to negotiate. But rather than doing this yourself, you can have a seasoned mortgage broker put their negotiating skills and experience into practice to get the best deal for you.

Only One Mortgage Application

If you were to shop around for a mortgage on your own, you'd have to fill out multiple mortgage applications with each bank or lender. Instead, only one application would be required if you work with a mortgage broker. They'll use that information to shop around for a mortgage on your behalf, so you don't have to waste time filling out numerous lengthy applications.

Do you know what credit score is required to get approved for a mortgage?

They Don't Charge You For Their Services

Why wouldn't you take advantage of the awesome services that a mortgage broker can provide you with if you don't even have to pay them? The fact that there is no charge to you makes working with a mortgage broker a no-brainer.

So, how do they get paid? Mortgage brokers are paid a finder's fee from the lender or bank that you end up getting your mortgage from. They are certainly compensated, but the cost never comes out of your pocket.

In The Market To Purchase a New House?

When you decide you're ready to apply for a mortgage to purchase a new home, a mortgage broker is your best bet. They work for you and not the banks, which means they make sure they get you the mortgage you need at a price you can afford.

Written by Lisa from Loans Canada