Should you use a mortgage broker?

why use a mortgage broker

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).

Alex Lavender

Alex Lavender

Alex Lavender is a mortgage broker based out of Halifax, Nova Scotia. He is the author of the book "Mortgages for Millennials" which is used by Canadians to understand how mortgages work. Alex was born raised in a small town in Ontario, and now finds pride in helping everyday Canadians get a mortgage for their first home.