06 Apr Mortgage Broker or Big Bank: Who to Choose?
Owning a home gives you peace of mind because you do not have to worry about rent. Moreover, you can make changes to your home freely in addition to receiving some tax benefits. Unfortunately, buying a home is a complex process. For example, how would you finance it? Would you finance it through a big bank or for a mortgage broker? Who among them would give you the best deal? Understanding the difference between a big bank and a mortgage broker would help you make the best financial decision. Here is an in-depth analysis of these two parties. It will help you make the right choice.
· Big Banks: What Can They Offer You?
Canada has more than thirty domestic banks in addition to over twenty-four foreign banks. Most of these institutions offer mortgage services. Usually, they will assign a loan officer to you. This officer guides you through the mortgage process including helping you understand relevant terminologies. He will recommend an offer to you based on the information you reveal to him. It is likely that this officer will recommend a deal that favors him and the big bank. Remember, the compensation he receives for his effort is a combination of bonuses, commission, and a salary. Naturally, he wants to boost his earnings even if it means offering you a deal that is less than perfect.
· Mortgage Broker: What Can He Offer You?
A mortgage broker is a freelance agent who facilitates a deal between the lender and the borrower. His job is to compare the rates offered by different financial institutions. Then he helps mortgage borrowers decide on the best deal possible. A broker evaluates your current financial status, he proposes the best deal for you, and then he sends your application. Additionally, he educates you on various financing options including fixed mortgage, variable mortgage, or a combination of the two. Furthermore, he would advise you on a closed or fixed term mortgage. Talk to a broker today so that he can help you understand such things.
· The Benefits of Opting For a Mortgage Broker
Mortgage brokers are freelance agents. That means they can work on your time, which is critical if you are always busy. Brokers are also open to new forms of communication including Skype, email, and social media tools. More importantly, brokers will present all the available options so that you can choose the one you like the most. Moreover, mortgage brokers express a greater desire to negotiate the terms of the deal than lending officers do. This quality is especially important for people who feel shy or intimidated when negotiating contracts. Talk to a professional mortgage broker today so that you can get an excellent deal.