Which to choose Broker or Bank?
When purchasing your first home, it can be a mind-boggling experience.
Applying for a mortgage can be the most intimidating experience out of the whole process. How do you know where to start? Let’s have a look.
Previously home buyers would simply go to a bank for their mortgage needs, nowadays there are more options as 40% of consumers have turned to a mortgage broker for their lending needs.
All mortgage brokers are provincially licenced. Not only can they assist you with all your mortgage needs but a broker can advise you with what is affordable to you. A broker will search for the best mortgage product that saves you money and advise you how you can pay off your mortgage a lot quicker.
Most banks’ rates and mortgages can also be acquired through a mortgage broker. What does getting your mortgage through a bank mean for you, the home buyer? It means not having all the selection of lenders and choosing only what is being offered to you. It can also mean higher pre-payment, harsher penalties if you need to break your mortgage sooner than anticipated and interest rates that go out the roof. Which can cost buyers thousands and thousands of dollars over the life span of the mortgage.
At Noble Mortgages we’re able to tailor your mortgage to specifically meet all your needs. Our broker will work with lenders who have more flexibility to obtain the lowest rates, individuals with a poor credit history and clients that are self-employed.
Mortgage brokers work on a commission basis who are paid by the lenders which after all due diligence will approve your mortgage, so there is no cost to client. At Noble Mortgages, our clients are based on referrals so your best interest is what is most important to us.
Finally, if you decide to proceed with a mortgage broker you will have the freedom to choose from numerous amounts of options, while at a bank the only choice you have is the one they provide you with.