Why use mortgage brokers?

By Bruce Firestone | Uncategorized

Oct 05

Why use mortgage brokers? Why not just go to your bank? Because:

1. they can source mortgages from 8, 10 or more lenders from just one credit report (up to 42 I’m told not counting private lenders)

2. they can get more competitive interest rates and terms  

3. they are paid by lenders at least for most residential mortgages (commercial borrowers usually pay their fees directly; note some residential clients may pay a fee to B or C lenders)

4. they save you time 

5. they protect your beacon/credit score from multiple hits

6. they can often get you higher LTV, loan to value ratios

7. they can get you a second mortgage if you need it

8. they can help you structure financings

9. they can make investor/partner introductions 

10. they can advise you on ways to retire debt faster (eg, paying your mortgage 2 x a month)

11. they work for you not lenders

12. they keep you away from banks who use tied selling to push their own (often) expensive products like mortgage insurance or (often) poorly performing mutual funds

13. mortgage brokers are licensed by FSCO

14. they are not selling you a limited number of bank products –they pull from the entire spectrum

15. lenders pay mortgage broker fees whether it’s to an independent or someone in their own institution 

@ profbruce @ quantum_entity

Note: with input from

mortgage agents Sean McCormick, Capital Mortgages and Johny Ghossoub, Mortgage Alliance

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