|Broker vs Banker
You want it all: the best available rate with exactly the right features you need to live comfortably with your mortgage and pay if off in record time. If you want the perfect mortgage, you need to shop around. And that’s my strength. I offer access to over 50 of Canada’s leading lenders, including major banks, credit unions, and national, regional and private lenders. I do the research for you, finding you the best mortgage across multiple lenders.
Your bank, as great as they are with your day-to-day banking, may not be the best choice for your mortgage because they represent just one available lender. Access to lender choice is one difference between getting a mortgage from a Bank vs a Broker, here are more:
||YOUR MORTGAGE BROKER
||Mortgage brokerages negotiate discounted rates with lenders, and have access to rate promotions and specials.
||Rates are set by the Bank. If there’s a better deal in the marketplace, you’ll have to find it yourself.
||Your Mortgage Broker works for you, not any one lender.
||Mortgage specialists are there to build business for the Bank.
||Brokers have access to mortgages for the self-employed and those with past credit issues.
||It is difficult to get a mortgage for certain client situations.
||The winning lender pays your Broker for the services and solution provided.
||Mortgage specialists are paid and incented by the Bank.
||Brokers offer ongoing advice after your mortgage closes i.e. how to pay off your mortgage faster, power down debt, finance renovations or invest in property. There have been many regulatory changes, so it’s important to have access to a mortgage expert.
||No proactive ongoing advice is typically provided. You will get an annual mortgage statement.
||Your Broker will go to bat for you again to make sure you have the best deal possible.
||You may not be offered the best deal initially, requiring you to proactively contact the Bank to negotiate.
Getting a mortgage is a very significant financial event. That’s why you want someone who is highly specialized in the mortgage marketplace and focused solely on your needs. Get in touch for advice that is relevant to your situation.
30-year amortizations can be a smart financial strategy
If you have 20 per cent equity or more, you can choose a 30-year amortization mortgage. Homeowners with less than 20 per cent down are not eligible for an amortization over 25 years. A longer amortization allows you to minimize your mortgage payments and free up cash flow for uses like investing, business needs, post-secondary education, maternity leave, home maintenance, or other life situations. You can keep your payments at a shorter amortization and only use this flexibility if the need arises. Having a mortgage that gives you room to breathe may be worth the extra cost in interest, and I can help you determine if this is right for you.