Broker or Bank?

The Mortgage Consultant

Mortgage brokers offer specialized knowledge about mortgage products and work on your behalf to get you the most competitive mortgage rates without any hassles or negotiation on your part. Mortgage brokers can assist you in selecting the right mortgage product for your needs from over 30 mortgage lenders across Canada, including the major banks, trust companies, credit unions, finance companies, and private lenders. Brokers have access to updated interest rates on a daily basis, ensuring that you get a competitive rate.

A broker saves the time and energy of applying to various financial institutions on your own and also provides personalized service to you. Based on your application and financial details, the broker will search the marketplace for the suitable mortgages. By reviewing your financial situation as well as your future plans, a mortgage broker will search the marketplace and work with you to select a mortgage that will meet your needs and help you achieve your goals, while integrating your comfort for risk. A mortgage broker can also help you develop strategies to pay off your mortgage sooner.

It is commonly believed that mortgage brokers charge an upfront fee and should be used only as a last resource, but this is not the case. When mortgages are arranged through a major financial institution, brokers do not charge a fee to you. Instead, the lender pays the broker a fee when the deal is funded, for sourcing the deal and handling the documentation. The broker helps you to do the research and only gets paid once the proper service has been delivered. The banks view mortgage brokers as an alternate sales channel to their branch operations and mortgage brokers work with the major banks to build business.

For these reasons, the mortgage brokerage industry has seen tremendous growth over the past few years. Four years ago, brokers accounted for 14 per cent of the mortgage marketplace, and in 2003, mortg

age brokers accounted for 26 per cent of mortgages funded in Canada.

The Bank

Owning a home is one of the most important investment decisions many people will ever make. Interest rates at historic lows are increasing affordability and many Canadians are realizing their dream of home ownership. The good news is there are many options when it comes to financing your home purchase. The decision to get your mortgage through your bank, broker, or other financial institution depends largely on your needs and requirements.

When choosing a mortgage, first consider your goals and level of risk tolerance. Your bank can help you choose the homeownership solution that is right for you. By devising a solution that minimizes your borrowing costs and maximizes your opportunities, your personal banker can help you select the best products and services to meet your needs. This expert advice can be invaluable and save you thousands of dollars in interest expenses by customizing a unique borrowing strategy. By taking into account mortgages, credit cards, and lines of credit as part of a comprehensive strategy, you can improve cash flow, minimize your borrowing costs, and borrow to be better off.

With the help of your personal banker, review your needs and wants to find the right products and tools for you. With a full range of personal banking solutions, your bank can help you reach all of your financial goals, from day-to-day banking to creating borrowing and investing strategies. Whomever you decide to choose, your bank is a good place to start to find answers to your financial and home ownership questions.