Mortgage brokers are paid a commission from the lender on your mortgage.
It doesn’t cost the home buyer anything to use a mortgage broker.
A mortgage broker is licensed to help you select a mortgage that suits your financial and personal needs.
Mortgage brokers work for you as their client and have access to many different lenders.
Unlike a bank or financial institution, they have number of mortgage products to offer- not just what their bank offers!
Short answer: they do all the leg work for you!
They pull your credit bureau once and then shop lenders to find you the best mortgage for your financial and personal situation.
This saves you time, money and spares you from having your credit bureau pulled repeatedly if you are applying to multiple banks.
A good mortgage broker will discuss in detail the different products available and suggest the type of mortgage that will benefit you the most, i.e. either a fixed rate mortgage or variable rate mortgage etc.
A mortgage broker works for you as their client. They act in your best interest at all times.
A mortgage specialist at a bank works for the bank as their client.
They will be acting in the lenders best interest at all times.
Many years ago when I bought my first investment property, I wanted to borrow equity from my home for the down payment. This ended up costing me around $1,000 to complete because my original mortgage was not set up to allow this. I learned my lesson and have found great brokers to work with ever since!
Your own personal mortgage shopper- must be expensive, right? NOPE! There are no mortgage broker fees for the home buyer.
Mortgage brokers are paid for by the lenders.
They are paid for bringing the bank or financial institution your business. You have an expert working for you and it is a free service.