The difference between mortgage brokers and banks

When people are trying to buy a house in Canada and they need to apply for a mortgage, they basically have two options: going to their bank and apply or resorting to the services of a licensed mortgage broker, such as, in order to get the assistance and support they need. Many clients go the bank first, as they act on the misconception that there is no difference between the two options. In reality, there is a huge difference between the two, but not all clients take the time to realize this difference, because their main concern is how to get the mortgage they need, which is understandable. Adding to that the fact that most banks would rather have clients not knowing the difference, it becomes clear why so many people are misled in their choice. This doesn’t necessarily mean that all mortgage brokers are good and that they will all offer you the best of services, which is why it is important to conduct a thorough market research before choosing who to work with.

First of all, and most importantly for that matter, a mortgage broker, a good one that is, will go beyond the 9 to 5 services that any bank officer will offer you. Indeed, highly professional and dedicated brokers will offer you plenty of their time, turning client relationships in close, personal relationships, which means they will better understand and acknowledge your needs and wishes, which is a very important factor. Apart from the brokers making the process an intimate one, which it should be, another difference between mortgage brokers and banks is that the mortgage advisors that work at the bank are exactly that, advisers and not brokers. Bank employees get bonuses for selling you the product of their lenders, not for finding you the best option, whereas the broker will make sure you get the best mortgage you can possible get, whether you’re a first time buyer, you’re looking for a refinance or a renewal, you’re divorced or self-employed, all of which matter in the process of applying for mortgage.


Last, but not least, when it comes to mortgage renewal, a lot of banks and lenders will try to circumvent your broker and send you offers to renew with them directly, but that is only because shopping around means they risk losing you as a client. Professional and dedicated brokers will shop around for you and will make sure that, even though you’re just looking for a renewal, you will get the best possible deal. Nevertheless, as mentioned above, there are numerous brokers on the market in Ottawa, so if you want to benefit from the kind of services and advantages mentioned above, then you need to find a first class broker, a good example in that direction being, which means you need to take the time and research the market thoroughly and attentively.