Advantages of Using a Mortgage Broker vs. Using a Bank

Investing in a home is one of the biggest financial decisions we will make in our lives and is one that sees us as individuals relying on the advice, counsel, and experience of other parties such as our real estate agents, lawyers, and those involved with assisting us in obtaining a mortgage. When making financial preparations, one of the first questions that arises is whether to work with a mortgage broker or directly with a bank. Here are our top three reasons why working with a mortgage broker can benefit you.

A Mortgage Broker is More Connected

A mortgage broker is a licensed professional who is connected to a variety of different lenders. This includes banks, credit unions, trusts, and more. Your mortgage broker will select the best fit for each specific client based on your needs. No matter the type of mortgage you are considering, your broker will dedicate time and resources into finding the right lender for you. It is also the broker’s responsibility to obtain all necessary information (such as credit history) pertaining to their client to ensure them finding a lender that will accommodate your needs as a buyer according to your financial status. When you’re working with a bank, they are trying to sell you on their specific packages and products. A mortgage broker working with an expansive rolodex of lenders means your options in terms of financing are not as limited as they would be when you work directly work a bank. Working with a mortgage broker can not only save you money but also time. Working with the right broker means that you will be informed about every aspect of your mortgage, and you can move forward in confidence with the purchase of your property.

Competition with Rates

Because mortgage brokers are not restricted to only selling clients on the mortgage offered by one specific financial institution, there is often flexibility and therefore competition with mortgage rates. As we mentioned above, brokers’ financial contacts are not limited and we source lenders from various sources, which means there is not only a higher chance of a much more appealing rate, but also there are lenders that you may not be able to access on your own. Some lenders decide to work solely with brokers who they know will only bring them suitable clients, meaning that as an individual you would not be able to directly work with a lender unless you’re working with a broker. Also, a broker is ideal for someone who may have a less than appealing credit history. Banks are known to easily reject based on your credit history whereas a mortgage broker can examine your financial background and explore lenders that would be willing to loan despite a lower credit score.

Brokers Work with You

A mortgage broker works on a client-by-client basis. Each client experience and outcome is personalized to their needs. A mortgage broker will work with you to provide detours to roadblocks in the process of financing for your home. Having clarity around the financial agreement you’re entering into is a must and a broker can advise ahead of finalizing your loan on a few recommendations that may positively impact the rate you receive. This could be anything from paying off a credit card to increasing your down payment amount even slightly. These small considerations can make all the difference to a lender and a seasoned mortgage broker will advise you on how you as a client can enter into an agreement with the confidence that you can maintain your loan.

It is imperative that you find a mortgage broker that will meet your needs as a client and that your interests align. At MortgagePath Capital we specialize in custom mortgage plans that are specific to each individual client. Your goal and ours is to find the lowest possible rate for you. If you’d like to speak with one of our mortgage specialists today and learn more about your options as a property owner, email us at or call our office at (416) 840-9326 and one of our team members will be more than happy to speak with you and answer any questions you might have.