TORONTO Real estate Mortgage 's - which is better...mortgage broker or bank
• Brokers are typically paid the same
amount no matter what rate is offered to the
client. Bank specialists’ rate of pay is
generally reduced in direct relation to the
amount they discount your rate from the bank’
s posted rate, although again, depending on
market conditions, there is usually a lot of
flexibility with banks..
CONTINUED BELOW....
amount no matter what rate is offered to the
client. Bank specialists’ rate of pay is
generally reduced in direct relation to the
amount they discount your rate from the bank’
s posted rate, although again, depending on
market conditions, there is usually a lot of
flexibility with banks..
CONTINUED BELOW....
• The benefit of using a Mortgage Broker is
the fact that they have the ability to offer you
mortgage products from a several financial
institutions where as Bank Specialists work for
their own bank, and that means that they can
usually only offer you their institution’s products.
On the other hand, Banks generally do have
greater flexibility and can be negotiated with.
Always negotiate (after getting at least three
initial quotes) and never take the first quote that
you are given. Posted rates are in most cases,
negotiable.
the fact that they have the ability to offer you
mortgage products from a several financial
institutions where as Bank Specialists work for
their own bank, and that means that they can
usually only offer you their institution’s products.
On the other hand, Banks generally do have
greater flexibility and can be negotiated with.
Always negotiate (after getting at least three
initial quotes) and never take the first quote that
you are given. Posted rates are in most cases,
negotiable.
"What is the difference between a Mortgage
Broker and a Bank Mortgage Specialist?
There are actually a number of differences,
some of which may not be that obvious .
• A Mortgage Broker is more likely to work
in your best interests, whereas Bank
Specialists are working for the best interests
of the Bank and are accountable to their own
financial institution. That being the case,
getting quotes from at least two brokers and
three banks, can lead to points being taken
off, as they compete for your business. If you
have a good credit rating and a reasonable
down payment, and depending on market
conditions, banks and brokers will
(sometimes) actually try to out bid each other
for your business.
Broker and a Bank Mortgage Specialist?
There are actually a number of differences,
some of which may not be that obvious .
• A Mortgage Broker is more likely to work
in your best interests, whereas Bank
Specialists are working for the best interests
of the Bank and are accountable to their own
financial institution. That being the case,
getting quotes from at least two brokers and
three banks, can lead to points being taken
off, as they compete for your business. If you
have a good credit rating and a reasonable
down payment, and depending on market
conditions, banks and brokers will
(sometimes) actually try to out bid each other
for your business.
Home Mortgages mortgage brokers vs banks
| How to refinance mortgage - find a broker - find a bank specialist |
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Mortgage brokers vs Bank Mortgage Lenders
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• Depending on your Province, Mortgage Brokers must be licensed and are subject to a strict set of requirements. Accredited Mortgage Professionals (AMP) must take continuing education courses in order to maintain their accreditation. Bank specialists are not licensed and require no formal training.
• Because mortgage brokers are actually mortgage resellers, they are not tied down to any specific lender. You will be given broader access to all different types of lending institutions. A bank specialist has a limited number of their own institutions products and while it may not be the best mortgage product out there, they will do their best to sell you their institutions mortgage product cause if they don't your going somewhere else. In either case, Always negotiate for lower rates.
• Mortgage brokers use their knowledge and experience to negotiate the best acceptable rate and product for you from a number of lenders. When you see a bank specialist, you must mortgage negotiate and not just take on the posted rates
• Posted bank rates are more like institutionally suggested or recommended rates. They are ok for some people, but you can usually do better. Would you pay the msrp for a new car? Of course not. Again, always negotiate.
Most loan officers earn all or a substantial portion of their income from commissions. Typically, the larger the loan and the higher the points, the more money loan officers earn. Whose interests, then, are lenders looking after? In short, their own. Lenders serve two basic task masters. First, they must be competitive in the marketplace. Second, they must provide a good a return to their investors. Surprisingly, there is no incentive nor requirement to provide a borrower with the best available loan and one way to overcome this, is to get several competitive quotes and negotiate. Leg work...no way around it.
Mortgage brokers can often find a lender who will make loans that a bank refuses-- problem credit is one example. Loans for unique or commercial properties might be easier to secure through a mortgage broker. Make your choice of a lender based on the best loan terms you can find. Ask questions about expected time-frame. Ask your real estate agent friends who have recently bought a home for lender and broker referrals.
• For conventional financing, the services of a mortgager broker are generally provided at no visible cost to you. So in conclusion, if you have the ability to use the services of a professional Mortgage Broker, then do so, but also compare the rates between at least three banks. There is no way around it. You will have to do some leg work to get the ideal rate at which you are comfortable with..
Negotiate and find the best mortgage solution, by getting several quotes from both brokers and banks. Present the quotes to the most flexible lender, and request a further discount. Under some cicumstances, some of the lenders may start to under cut each other. It doesn't hurt to try. A little extra leg work can save you thousands in the long run.
Approxiametly, 75% of people in the United States use mortgage brokers. Because the Mortgage Brokerage Industry is relatively new in Canada, the numbers are lower, however, those numbers are increasing every year.
TORONTO Mortgage - common questions
How to get the best mortgage rate
How to get the best mortgage broker rate
How to get the best Bank mortgage rate
Where can you get the lowest mortgage rate
Are brokers better than banks
How to get the best mortgage
How to negotiate with a broker
How to negotiate with a bank
Mortgage brokers vs Bank Mortgage Lenders
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