Benefits of working with a mortgage broker & a bank in Toronto

Pros of Mortgage banks

  • If you are working with the local bank that you do banking with, they will know you and can look into your spending and earning habits better than say someone that is looking at the paper.  This is good for people that run small businesses In Toronto.
  • You typically will only have one point of contact that will work on your loan for you.  They will answer your questions and be straight with you.
  • You have the most control over the application process when working directly with a bank.

Cons of Mortgage banks

  • Many banks are very conservative. This makes it difficult to get a home loan or home refinance from a bank.
  • They typically don’t have as many options.  They do not shop around, you are asking of them directly, so you might not be getting the best deal.
  • Banks do not have to disclose what they make off of your loan to you.  Brokers do.

Pros of a Mortgage Broker

  • Their commission is disclosed to you, so you know what they made off of working for you.
  • Brokers are usually very personable and work for you.  Banks work for themselves.  This means you will get better customer service overall.
  • Brokers will negotiate for you to get you the best deal on the current market.
  • Mortgage Brokers have access to various lending programs to get what would suit your situation the best.

Cons of a Mortgage Broker

  • If you are on a tight deadline, you should be aware that mortgage broker loans are custom tailored to your circumstance.
  • They do add to the cost of a loan.  However, many times they will pay for themselves in the savings.
  • They have no control over the underwriting process or but they have a full understanding of it, and are able to place you with the right financial institution.

Shopping around with different lenders can be time-consuming.  Not to mention most have, well, banker hours.  So, many of us are at work when we need to speak with them.  This is another advantage to having a broker as they usually will work around the times that you have available.  They offer a personalized service to help you get what you are looking for, a low-rate mortgage.

Mortgage broker loans are often easier to get.

Many times the lenders that work with Mortgage broker Toronto are a little less hash than other direct lenders. They only deal in mortgages and don’t offer all of the other banking services.  These lenders have done nothing but offer home loans.  This means they have a little more experience in home loans and are a little looser with their purse strings.  If you have a less than perfect credit score, they are more likely to take a look and give you an offer versus a bank.

Bottom line, when you are looking to purchase a new home or looking to refinance your home a mortgage broker is most helpful.  But, each situation is unique.  This is why there are so many home loan options available.  Try to determine which would work best in your situation.  Remember, you don’t have to sign on the dotted line with anyone.  So, keep your options open, maybe work with a broker and also apply to a bank.

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