Broker VS Bank

When it comes to securing a mortgage, you might be torn between going directly to a bank or employing the services of a mortgage broker. Here’s a clear comparison to help you make an informed decision:

Mortgage Broker:

1. Transparent Fees: You won’t be charged directly. The lender pays the broker’s fee, ensuring no hidden costs for you.
2. Highly Regulated and Licensed: Your mortgage broker is licensed, and although not required, Tammy’s administrative team is also fully licensed, completing regular reoccurring training and ensuring expertise and accountability.
3. Your Interests First: Mandated by the FCAA to act in your best interests. Their primary goal is to find the best match for your financial needs.
4. Broad Product Range: They don’t represent a single institution. Instead, they have access to multiple lenders, giving you a variety of options.
5. Negotiation Experts: They use their extensive knowledge and relationships to get you the best rate and terms possible.
6. Flexible Hours: Available during regular business hours and also during evenings and weekends for your convenience.
7. Long-Term Partnership: From application to term renewal, they’re with you every step of the way, assisting you in making informed decisions.

Bank:

1. Limited Product Range: Can only offer products specific to that institution, limiting your options.
2. Self-Negotiation: Typically, the onus is on you to negotiate your mortgage terms and rate.
3. Rate of Pay: In-house mortgage specialists might be less incentivized to get you the best rate since their pay could decrease with larger discounts.
4. No Strict Licensing: While banks provide internal training, they don’t have provincially mandated licensing or continuous education requirements.
5. Staff Turnover: Your main point of contact might change throughout your mortgage’s life, lacking continuity.
6. Constrained Hours: Typically, they operate during traditional banking hours, which might not always be convenient for you.