Why a Mortgage Broker May Be a Better Choice Than a Bank
When it comes to getting a mortgage, many people instinctively turn to their bank. But is that really the best choice? Working with a mortgage broker can offer significant advantages, from more options to personalized service, and more cost savings over the life of your mortgage. Here’s why you might want to consider a mortgage broker over a bank.
More Options
One of the biggest benefits of using a mortgage broker is access to multiple lenders. Banks can only offer their own products, but brokers work with a variety of lenders, including major banks, credit unions, and monoline lenders.
Recently, I had a client whose mortgage application was declined by one lender due to a specific issue. Instead of starting the entire process over, I was able to quickly resubmit the file to another lender that had just lowered their rates. Not only did this result in an approval, but it also saved the client nearly $12,000 in interest over the term of the mortgage.
If a bank declines your application, you’re back to square one, needing to restart the process with another bank. A mortgage broker streamlines this process, minimizing your effort while maximizing your options.
Save Time and Hassle
Applying for a mortgage can be time-consuming, especially if you’re shopping around for the best deal. If you go from bank to bank, each will require you to submit applications, documents, and answer the same questions repeatedly. A broker, on the other hand, does the heavy lifting for you.
With one application, I can shop around and find the best mortgage for your situation. If one lender doesn’t approve your file, I can seamlessly submit it elsewhere, often without requiring any additional work from you. Your time is valuable—let a broker handle the process while you focus on what matters most.
Rate Insurance: A Key Advantage
Many people focus solely on interest rates when choosing a mortgage, but there’s more to it than just the number. One advantage of working with a broker is rate insurance. If rates drop significantly and it makes financial sense to break your mortgage and pay the penalty, I’ll notify you and present you with the opportunity to save money.
Banks typically won’t proactively inform you if you could save by refinancing. With a broker, you get ongoing mortgage management, ensuring that you’re always in the best possible financial position.
Independent, Unbiased Advice
Unlike a bank, which only offers its own products, a mortgage broker works for you—not the lender. That means you get unbiased advice tailored to your needs, not the bank’s bottom line. Brokers can also help you understand the full details of your mortgage contract beyond just the interest rate, ensuring there are no hidden fees or unfavorable terms.
A Mortgage That Works for You
Mortgages are more than just interest rates. They involve complex contracts, penalties, and conditions that can impact your financial future. While a bank may offer you a low rate initially, are they proactively tracking your mortgage? Will they reach out when rates drop or when opportunities arise to save you money?
As a broker, I ensure that your mortgage continues to serve your best interests—not just today, but throughout its entire term. You’ll receive ongoing advice, annual reviews, and strategies tailored to your financial goals.
The Bottom Line
If you walk into a bank, your options are limited to that institution’s products. If your application is declined or you’re given a low pre-approval, you’ll have to start all over again elsewhere. Instead, working with a mortgage broker gives you access to multiple lenders, ensures you pay less for your mortgage over its lifetime, and provides ongoing support to help you save money.
If you want a mortgage professional who works for you, tracks your mortgage for opportunities to save, and handles the entire process so you don’t have to, book a call-I’d be happy to help.