Ever wonder about the difference between Mortgage Brokers and Bank Mortgage Specialists?...Being informed could save you thousands of dollars!
First off, depending on the Province, Mortgage Brokers must be licensed and are subject to a strict set of requirements. Accredited Mortgage Professionals (AMP) must take continuing education courses in order to maintain their accreditation. Bank Specialists are not licensed and require no formal training.
Another key difference between the two is that a Mortgage Broker works for you, the client, whereas Bank Specialists are employed by the financial institution. As a bank employee, a Bank Specialist has a limited number of their own institutions' products and while it may not be the best one available on the market it is in their best interest to sell you their institutions mortgage product. In addition, the Bank Specialist rate of pay is generally reduced in direct relation to the amount they discount your rate, so the higher the interest rate they can get you to accept, the more they get paid.
Because Mortgage Brokers work independently, they are not employees of any particular lending institution. Instead, they have established relationships with several financial institutions that are competing to get your mortgage business. Behind the scenes, these institutions continuously compete with rate, product and service promotions hoping to win your business. This places Mortgage Brokers in an advantages position to provide you with access to the best rates and most innovative mortgage products presently being offered by any lender.
Another huge advantage of working with Mortgage Brokers is the Brokers access to non-bank lenders. While not considered "Banks" these institutions are still required to follow the same regulations and have the same default insurance options as thier Bank counterparts. The advantage to consumers is that these lenders choose to spend less money on advertisng and focus instead on offering their mortgage products directly through Mortgage Brokers. Because these lenders are competing against the Big 5 Banks in Canada, as well as the other non-bank lenders they will often aggressively compete for your business by offering discounted interest rates, better prepayment options and flexible payment schedules. These non-traditional lenders are also much more flexible than Banks when dealing with clients who have poor credit, are self-employed or work on commission.....so no client ever needs to be turned away!
Best of all, for conventional mortgage financing, the services of a Mortgage Broker are provided for you at no cost. Brokers are paid a finder's fee by the lending institution for bringing them credit worthy customers like yourself...and because Brokers are also typically paid the same amount no matter what rate is offered to the client, they are free to shop for the best rate on your behalf.
In addition to your Mortgage Broker being an invaluable resource in educating yourself about the products and services available to you, they will also play a critical role in getting your loan approved; helping you understand the qualifying requirements for the loan; helping you complete and submit a proper loan application and guiding you through the approval and closing process.
Today's competitive marketplace makes it essential for Canadians to shop around for the best mortgage rates and terms available to them. With new lending partners entering the mortgage lending industry every day, consumers literally have 1000's of mortgage products to choose from. With professional Mortgage Brokers available to do the leg work for you at no cost... the question is really 'Why would you not take advantage"?
If you have any questions about this article or if you would like to explore your mortgage financing options please call 416.303-4480 or visit my blog at www.thescooponmortgages.blogspot.com
Sincerely ,
First off, depending on the Province, Mortgage Brokers must be licensed and are subject to a strict set of requirements. Accredited Mortgage Professionals (AMP) must take continuing education courses in order to maintain their accreditation. Bank Specialists are not licensed and require no formal training.
Another key difference between the two is that a Mortgage Broker works for you, the client, whereas Bank Specialists are employed by the financial institution. As a bank employee, a Bank Specialist has a limited number of their own institutions' products and while it may not be the best one available on the market it is in their best interest to sell you their institutions mortgage product. In addition, the Bank Specialist rate of pay is generally reduced in direct relation to the amount they discount your rate, so the higher the interest rate they can get you to accept, the more they get paid.
Because Mortgage Brokers work independently, they are not employees of any particular lending institution. Instead, they have established relationships with several financial institutions that are competing to get your mortgage business. Behind the scenes, these institutions continuously compete with rate, product and service promotions hoping to win your business. This places Mortgage Brokers in an advantages position to provide you with access to the best rates and most innovative mortgage products presently being offered by any lender.
Another huge advantage of working with Mortgage Brokers is the Brokers access to non-bank lenders. While not considered "Banks" these institutions are still required to follow the same regulations and have the same default insurance options as thier Bank counterparts. The advantage to consumers is that these lenders choose to spend less money on advertisng and focus instead on offering their mortgage products directly through Mortgage Brokers. Because these lenders are competing against the Big 5 Banks in Canada, as well as the other non-bank lenders they will often aggressively compete for your business by offering discounted interest rates, better prepayment options and flexible payment schedules. These non-traditional lenders are also much more flexible than Banks when dealing with clients who have poor credit, are self-employed or work on commission.....so no client ever needs to be turned away!
Best of all, for conventional mortgage financing, the services of a Mortgage Broker are provided for you at no cost. Brokers are paid a finder's fee by the lending institution for bringing them credit worthy customers like yourself...and because Brokers are also typically paid the same amount no matter what rate is offered to the client, they are free to shop for the best rate on your behalf.
In addition to your Mortgage Broker being an invaluable resource in educating yourself about the products and services available to you, they will also play a critical role in getting your loan approved; helping you understand the qualifying requirements for the loan; helping you complete and submit a proper loan application and guiding you through the approval and closing process.
Today's competitive marketplace makes it essential for Canadians to shop around for the best mortgage rates and terms available to them. With new lending partners entering the mortgage lending industry every day, consumers literally have 1000's of mortgage products to choose from. With professional Mortgage Brokers available to do the leg work for you at no cost... the question is really 'Why would you not take advantage"?
If you have any questions about this article or if you would like to explore your mortgage financing options please call 416.303-4480 or visit my blog at www.thescooponmortgages.blogspot.com
Sincerely ,
Domenic Mirabelli
Morcan Financial Inc.
(416) 303-4480
domenic.mirabelli@migroup.ca
www.thescooponmortgages.blogspot.com
Morcan Financial Inc.
(416) 303-4480
domenic.mirabelli@migroup.ca
www.thescooponmortgages.blogspot.com
"If you're not using a Mortgage Broker... you're likely paying more than you need to"
Visit only a certified broker in seeking help in finding a mortgage lender. Always ask for their license to operate in your state,
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