There are generally two ways to get a mortgage in Canada: From a bank or from a licensed mortgage professional.
Lately, you've probably been hearing a lot of your friends and co-workers talking about getting their mortgages through a mortgage broker. What's led to this rapid rise in the popularity of brokers? A lot of things.
While a bank only offers the products from their particular institution, licensed mortgage professionals send millions of dollars in mortgage business each year to Canada's largest banks, credit unions, trust companies, and financial institutions; offering their clients more choice, and access to hundreds of mortgage products! As a result, clients benefit from the trust, confidence, and security of knowing they are getting the best mortgage for their needs.
More lenders are now offering a wider range of mortgages to choose from. Consumers have begun to shop around for their mortgage rather than simply taking what their financial institution offers. Lenders have started advertising discounted rates, making it obvious that there's a good reason to shop around.
However; the biggest reason for the increasing reliance on mortgage brokers is that brokers offer consumers several important advantages:
- Independent, unbiased advice. Mortgage brokers provide mortgages from various lenders, so they're not tied to one lender or one type of mortgage.
- More mortgage choices. Mortgage brokers have direct electronic access to virtually every major lender in Canada, so they can show you a wide range of rates and features.
- Best-available rates. Mortgage brokers study rates daily and always know where to find the most competitive ones. Plus they know how to negotiate with lenders to ensure you're getting the best available deal.
- Fast, convenient local service. Mortgage brokers are highly motivated to keep your mortgage moving forward quickly because they only get paid—by the lender—when your mortgage is complete.
- Specialized knowledge. As specialists, mortgage brokers have a thorough understanding of all available products, features and rates. And they can explain everything to you so you know exactly what you're getting into.
- Secure, established lenders. Mortgage brokers deal with the same reputable, established Canadian financial institutions you're used to. Plus, they have access to some innovative broker—only lenders who offer even more attractive rates and features.
Whether you're purchasing a home for the first time, taking out equity from your home for investment or pleasure, or your current mortgage is simply up for renewal, it's important that you are making an educated buying decision with professional unbiased advice.