Mortgage Broker vs Bank

When you are deciding between using a Mortgage Broker vs Bank, you’re actually asking the wrong question. Mortgage brokers use banks. The question should be Mortgage Broker vs Mortgage Specialist.

Mortgage Broker vs Mortgage Specialist

Mortgage brokers are independent. A good mortgage broker will place your mortgage with the bank that offers the best terms. A mortgage specialist resides in the bank and will place your mortgage with the bank that he/she resides in. The mortgage specialist will likely receive a commission for doing so as well. So when contemplating Mortgage Broker vs Bank, consider that the bank uses a broker of sorts too; one that is likely bias.

Mortgage Terms

I had mentioned that a good mortgage broker will place your mortgage with a bank offering the best terms. It’s not necessarily the bank with the best rate. If your situation is perfect, yes, it can be based on rate only. But there are other factors to consider when a mortgage broker helps you choose the best bank.

How A Mortgage Broker Chooses A Lender

Here are some of the factors that will help a mortgage broker choose the best lender:

1. Rate: if there are no special circumstances, yes, rate can be the main factor.
2. Amortization: sometimes it is necessary or preferable to lengthen the amortization period beyond 25 years to keep the payments low. Only certain banks will do this.
3. Credit score: if you have credit problems, some banks will deny you. Mortgage brokers have access to lenders who will consider bad credit. They can also negotiate with the lender on your behalf to explain any issues.
4. Income: nowadays it is becoming more and more difficult to qualify for a mortgage. If you don’t show enough income, mortgage brokers can find lenders who are more lenient.
5. Zoning: if the land is farmland/agriculture, commercial or even if your property is in a company name, a good broker can find a lender to match your needs.
6. Rental property: if you own multiple rental properties some lenders aren’t interested and others are generous with their terms for rentals

And the list goes on. So next time you are considering a Mortgage Broker vs Bank, please remember that a good mortgage will help you choose the best bank. It is not one or the other!

Robert Floris is a Mortgage Broker. His office is located at 651 Fennell Avenue East in Hamilton, Ontario. If you would like to speak with Robert, he can be reached at 905-574-9200 #215. Alternatively, you can contact Robert here.

If you would like to apply for a mortgage online, please follow this link.

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