Mortgage Broker vs Bank?

Mortgage Broker vs Bank?

In this brief article, we will highlight the main differences between working with a Mortgage Broker vs Bank. 

Service

A Mortgage Broker knows a bank being open from 9-to-5 does not represent the schedules of hard-working Canadians. When you really think about it, isn’t it absurd that you are expected to meet and discuss your finances during your own work hours?  Needless to say, Mortgage Brokers are available 7 days a week and also before 9 am and after 5 pm. Once you manage to arrange an appointment at a convenient time with your bank, you have to drive, park. and carry a stack of paperwork. You might even need to make multiple trips to meet with multiple banks and multiple people. On the other hand, you can set up a Facetime or Skype discussion with your Mortgage Broker from the comfort of your home or office. Mortgage applications can easily be completed online and your Mortgage Broker will patiently help you gather required documents which will prove to be incredibly efficient. Best of all? Your Mortgage Broker will do the lender shopping and negotiating on your behalf. This lets you focus on what is most important such as personal, work, and family time.  

Options

When you work with a bank, you will be speaking with an employee of the bank. This employee, well, works for the bank. They will provide you with a one-item menu and offer you a 1-option beverage, with a 1-option desert. the options and feedback that are provided to you are being offered by a related-party. On the other hand, an independent Mortgage Broker will leverage their relationships with multiple mortgage lenders that offer multiple mortgage products. This is like walking into a pizza buffet with all of the toppings, beverages, and desserts available. Why limit yourself, mortgage options, and financial awareness?   

Credit

Should you step into the mortgage ring on your lonesome, make sure your credit knows how to take a jab, or two.  Each bank lender that you approach for a mortgage approval will pull your credit for an assessment. This credit pull is known as a ‘hard inquiry‘. Not only can multiple hard inquiries negatively impact your credit score, but it also does not look incredibly attractive to mortgage lenders. On the other hand, a Mortgage Broker will usually only need to pull one credit report that is securely transmitted to accredited mortgage lenders. Keep things simple. Federally regulated lenders 

Flexible Mortgage Approvals In Summary

Federally regulated mortgage lenders must follow prescribed underwriting guidelines. These guidelines include rules with respect to employment, income, credit, and debt serviceability. If you are a newcomer to Canada, self-employed, or have previous or current credit difficulties, you may not fit into the ever-shrinking bank box. DV Capital Corporation provides fast, flexible, and creative financing solutions for clients of all incomer and credit profiles. In fact, you may be approved based on sufficient equity even if you have been turned down elsewhere. 

In Summary 

Your Mortgage Broker is motivated to establish and maintain a long-lasting and meaningful relationship with you. In addition, your Mortgage Broker has a fiduciary duty to prioritize your interests and financing wellbeing.