Top 3 Downsides Of Using A Mortgage Broker

1. They can charge.

For typical mortgages where the borrower meets the standard qualification criteria, the mortgage broker gets paid a finder’s fee from the bank. It costs the borrower nothing and does not affect their rate. If a mortgage broker is charging a fee, you should question its validity or justification.

2. Moving to a different bank.

Mortgage brokers (generally) get paid (more) when they move your business to a new bank. Moving your business to a new bank can be a pain. Unless you’re just throwing your broker a bone, you should really only be moving to a new bank when the numbers make sense. The savings should be worth your while.

3. Getting in too deep.

If your mortgage broker is not very good at finding the best solution for you (or if they have the opportunity to get paid better), they can put you into a mortgage that is more expensive than necessary. So please do your own research and/or get a second opinion. If your broker seems to be proposing a more costly option, you should question its validity or justification.