> Mortgage Centre | Why I Choose a Broker over a Banker

Why I Choose a Broker over a Banker

Buying your first home is a stressful process. If you’re not up to par with the lingo, you will likely have a hard time getting informed, and you will eventually feel overwhelmed with it all. When I set out to get my first mortgage, anxiety began to settle. My husband had started to pose the tough questions: Do you want to stick with the bank you’ve been doing business with your whole life? Would you rather try one of the independent mortgage brokers that are rising in popularity? For our first mortgage, we went with my bank because it seemed safe and easy. For our second mortgage, however, we went with a broker. I’d like to outline the pros and cons of both options in an effort to make your upcoming choice easier:

Getting a Mortgage with Your Bank

In the past, people like myself trying to buy a home always turned to their banks to get a mortgage, but it appears that times have changed. In doing some research, I found that that in 2003, 26% of mortgages were given by mortgage brokers, and that number went up to 40% by 2009.

The emergence of mortgage brokers begs the question: Who do you go with and why? Many people prefer to go directly to their bank because of their pre-existing relationship. You already know the bank you will be dealing with, and you might trust them because there is more accountability at a larger financial institution. The other advantage is the ability to add your mortgage to an existing bank profile from which you can make automatic payments, simplifying the process.

This sounds great, but there are cons as well: Conservative loan programs set the price and leave little to no wiggle room. The process is bureaucratic and can be quite lengthy. This seemed like the norm when we got our first mortgage and we were mildly satisfied with the result.

Going with a Professional Broker

As we started our application for our second mortgage, the mortgage broker was easy to get in touch with and offered a less difficult application process. She did all the shopping for us and presented us with the best rates available. She also had wholesale prices because she buys mortgages in bulk from lenders —and the one offered to us was much lower than what the bank offered.

Because they have access to and have extensive knowledge about the current mortgage market, brokers can immediately weed out which banks will consider you, and which ones will refuse you. If you have bad credit, going with a broker is advantageous because they have access to many lenders, some of which specialize in clients who have negative financial reputations.

Throughout the whole process, the broker was there for us. She helped us through every step, from figuring out what we can realistically afford, to determining which mortgage product is right for us. Once the mortgage was closed, we were able to contact her about anything and has offered to help us until the very end of our payments. They provide a much closer personal service than banks do. Plus, you may not even get the same person if you need a mortgage with the bank in the future; whereas with a broker, you can go straight to the source whenever you need a mortgage.

Keep in mind, every situation is unique. If you have the time, knowledge, and resources to hunt for your own rate at each individual bank and lender, go for it. But if you want an expert’s opinion with access to the whole market and better deals, contact Mortgage West - The Mortgage Centre and get started today.