In Canada, the job of a mortgage broker is still one of those tasks that is not easy to understand. But recent study shows that knowledge about the work is increasing yearly.
In the United States, broker is a common job since the 1980s. Thus, Americans are very familiar with them as compared with Canadians who remain unfamiliar on the difference of mortgage banker versus mortgage broker. In relation and according to statistics, once a person tried purchasing a house with the help of a broker, he doesn’t come back to the traditional way of buying houses. This behaviour is probably because of the following services that a broker offers.
Assist you on understanding mortgage in a broader sense together with its free and impartial recommendations
Bankers can only offer information based on the products their banks have which is limited. As for a mortgage broker or mortgagepal, he can provide you with a broader range of lenders that offers variation of mortgage products. This means you can weigh your options more.
Educate you about the various mortgage products you have, particularly its cost
Part of your mortgage broker’s job is to help you understand the different mortgage options available for your income and credit scenario. He can assist you on developing an action plan that comes handy in case you don’t qualify for your preferred mortgage now. The plan also assures you to have a better rate.
You can’t find this kind of service in a bank. In the event that a bank educates you, that information will only be limited and usually based on their websites.
Look for the lowest possible interest rates on your behalf, which is based from your income and credit history
Brokers work with a lot of lenders and this reason alone helps you have an edge on finding a mortgage package under a much lower interest rate. Every time he successfully matched you to a mortgage that is not automatically offered by banks, he earns.
Your banker can negotiate on lowering the mortgage rates but this comes with a price or hidden charges. While a broker or mortgagepal on the other hand checks all the loan costs and assists you to identify all the hidden fees of every document presented.
Makes the negotiation on your behalf and in accordance to your credit rating
Bank negotiation is not a simple task to do; it requires your time and energy. When you do this, you are your own negotiator.
But once you use the services offered by a mortgage broker, it means that you are hiring an expert negotiator to act on your behalf. It also means that you will have the best rates and best deals available in the market at that time, one that the bank won’t be able to offer you.
Conduct a yearly mortgage review to check for ways that help you pay the mortgage faster
Bank will not be there to assist you lower your debt, it is not motivated to do so, because it expects that you will do your own research.
A mortgage broker or mortgagepal on the other hand will help you get out of debts and assists you on checking for the best renewal options.