You are probably reading this article because you have a general idea of what a mortgage broker is, but are wondering why use a mortgage broker? What value does a mortgage broker provide? And how much does a mortgage broker cost?
This article will answer all of these questions and show you the pros and cons of using a broker.
Why should you use a mortgage broker?
Some Canadians use one bank for everything, and will only go to their bank to get a mortgage, and that’s perfectly fine. But if you want to compare mortgages between multiple lenders including the big banks, then you should use a mortgage broker.
Using a broker will provide you with multiple loan offers. This allows someone who likes to be financially smart to easily compare the interest rates between lenders.
What does a mortgage broker do in Canada?
In Canada a mortgage broker is like a one stop shop to compare and contrast mortgages. This is different from a bank, that can only offer you one mortgage and one rate. Brokers have access to a wide variety of lenders allowing you to get multiple mortgage offers and rates for free.
Why use a mortgage broker instead of a bank?
A bank can only provide you with a single mortgage and single rate. They can rarely provide better mortgages or a lower interest rate. When you use a mortgage broker you’ll get 3 – 9 mortgage offers from multiple lenders.
With a broker you will compare the interest rate at all big banks, and at some alternative lenders.
How much does a mortgage broker cost?
While some mortgage brokers may charge you a fee upfront, Alex Lavender is free to use his broker services. That’s because the lenders provide the broker a commission, on any loan that you choose. So there is no need for a broker to charge the customer as well.
If you decide to use a broker you should make sure you are using an Accredited Mortgage Professional (AMP).