Question for you: Did you work with a banker or a broker for your last mortgage? 

We may have already done business together, and you may understand the difference between a banker and a broker. Even so, this might be worth a quick refresh in case you have a friend or family member who could use this information! Feel free to pass this on.

What’s The Difference?

The difference between a banker and a broker comes down to two things:

1.       The products each can offer

2.       Where their allegiances lie

In short, the bank pays a banker to make the bank money at your expense. On the other hand, a mortgage broker is paid by the lender to get you the best mortgage available, which is to your benefit.

Let’s expand on this a bit more. 

Mortgage Brokers

A mortgage broker can access multiple lenders and “shops around” to get their clients the best mortgage product available.

Working with a mortgage broker provides you with many options, including access to the best rates. 

Instead of you having to go in and fight the bank for a deal, your mortgage broker does all the legwork and presents you with options from several lenders. You can then select an option with guidance from your mortgage broker. 

And the best part is that the lender pays the mortgage broker upon closing, so there is no cost to you.

Bankers

A banker works for a single financial institution and can ONLY offer mortgage products from that institution.

As banks can only offer you their rates and products, they are very limited in how they can help you. They never provide you with the best deal to start with. However, they will eventually negotiate on terms and rates, but you will be responsible for doing the negotiations on your own. These negotiations are stressful and time-consuming. 

Is It Your Renewal Time?

Suppose you have a mortgage up for renewal, or you would like to refinance. In that case, it is always in your best interest to contact your mortgage broker instead of automatically dealing with the lender who currently holds your mortgage. Just because they were a good option previously  doesn’t mean they will be the best option in the future. You want to know all your options before you commit. 

If you or someone you know is considering a new mortgage, let’s connect to get you the best mortgage options available! I’m always here to help. 

P.S. Don’t forget to Join My VIP Club!

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Warmest Regards,

Christina Pentlichuk