Should You Hire A Mortgage Broker?

Should You Hire a Mortgage Broker?

When you think about buying a property and then considering your mortgage options, it would probably click you to head straight to a local bank’s branch and discuss your mortgage options with any representative. However, in today’s world, this is really not the case anymore.

People in today’s world are looking for the lowest interest rates possible, and if you hire a mortgage broker, you can score your best bet at getting them. In Canada, mortgage brokers are becoming really popular and are helping every person get the best rate on interest that they can.

It doesn’t matter if you’re buying your first property or you buy property occasionally, getting the lowest possible mortgage rates would be a priority for you.

When you hire a mortgage broker and they help you get the lowest mortgage rates, you might be able to save thousands of dollars over the life of your mortgage – hence, you should really hire a mortgage broker if you want to save a pretty penny.

What is a mortgage broker?

Think about a one-stop shop for all of the banks that are in your area. That’s what a mortgage broker acts like. The local bank branch that you go to will only provide you with the mortgage package over the range of products that they have, but a mortgage broker will provide access to a variety of lenders.

When you hire a mortgage broker, it would be like taking information from different banks, credit unions, and companies but here’s the catch: you only go to one person for all of this!

You can even ask your mortgage broker to set you up with a mortgage that you receive from a major bank for security purposes. Most of the really good mortgage brokers that you’ll talk to will have the benefit of getting handsome discounts from many of the lenders too. For this reason, they would be able to get you a lower mortgage rate – even lower than the one you would negotiate for yourself.

Once you hire a mortgage broker, it is their responsibility to deal with your financial situations even if they’re unique. According to your financial situation, your broker will match you with the perfect lender that meets your requirements and settles with your situations too. This means that if you’ve had any type of credit issues in the past or if you’re a full-time freelancer, your mortgage broker will use their relationships to get you approved. You won’t be able to do most of this on your own; this is why you should hire a mortgage broker for yourself.

Should You Hire A Mortgage Broker 2 - Comparewise

Why should you hire a mortgage broker?

The reason why most people don’t hire a mortgage broker for themselves is because of the lack of information they have regarding them. Many people aren’t even aware of what mortgage brokers do! If you don’t know what mortgage brokers do and end up losing the opportunity of hiring one, you would be missing out on saving thousands of dollars. Below are a few of the reasons why you should hire a mortgage broker for yourself.

1. They provide you with lower rates

As mentioned earlier, a mortgage broker is actually your best bet at getting the lowest mortgage rates possible. This is because they have the access to multiple rates and discounts along with a variety of lenders on their books – it’s easy for them to negotiate that way.

Most of these rates are not even advertised by companies, credit unions, or banks, and mortgage brokers will have exclusive ownership over these rates as they pass them onto you. The rates that are usually advertised by companies, credit unions, or banks are normally way higher than the ones you can get through a mortgage broker.

2. The benefit of accessibility

When you hire a mortgage broker, you’re basically accessing the interest rates and mortgage packages that are provided to a mortgage broker only. Brokers usually vet lenders and also negotiate on the behalf of the buyer; most of these mortgage brokers have a very well and established relationship with the banks, credit unions, or companies, so they are at a better advantage than any other person would be.

Hence, choosing not to hire a mortgage broker would mean that you forego that advantage and pick harsh prepayment penalties and also very high interest rates as well. Just because you don’t have enough information about what mortgage brokers do, you might end up spending thousands of dollars rather than saving that amount or buying something else in that money.

3. The benefit of customization

If you hire a mortgage broker, you will also have a better chance of getting a mortgage package that is tailored to your requirements and situations. Your mortgage broker will either assign you to a lender who will be more flexible towards people who have self-employed incomes or you can get assigned to a lender who would be more flexible towards flexible prepayment options.

Mortgage brokers have access to a variety of lenders, which means that they would be able to find the lender who is best for you. These brokers will help you land on a lender who will be mindful of your financial situations or specific needs, and provide you with a mortgage rate that is lower than what you could have negotiated for yourself.

4. Mortgage brokers are your allies

Mortgage brokers are hired by you to support you throughout the overwhelming process of taking a mortgage. You can get a realtor and you can get a lawyer, and while both of them will tell you so many things, a mortgage broker’s job is to simplify the process and bring everything together for you in order to make things less complicated and easier to understand.

A mortgage specialist will want to sell a bank’s product to you because that’s how they earn their money. However, that’s not a bad thing at all if you’re getting a package that is most applicable to your financial situation and requirements.

5. A price that is worthwhile

A mortgage broker will get paid through the commission he earns, and he will be paid by the lender who is granting you the money. However, don’t think that a mortgage broker will only look for his own benefit and not pay attention to your requirements – that’s a part of his job! Most of these brokers operate through word of mouth, and it would only be in the broker’s favor to provide you with the best service so that he gets more clients through recommendations.

Many people argue that a mortgage broker gets paid through the cost that is ultimately being transferred to the borrower from the lender – while this is not wrong, you should understand that either way, you will still receive a better interest rate through the broker than you would’ve gotten on your own. So, it’s rather you spending much more over the years through a high interest rate or letting a share of that money to a broker who will negotiate better rates for you.

6. The benefit of their expertise

It’s true to say that you would eventually benefit from the experience a mortgage broker has in this particular field. He would have seen many scenarios over the years, and has been in situations you wouldn’t have even thought of!

A mortgage broker can, hence, guide you over multiple financial situations and pen the circumstances down for you so that you can make a decision that is well-thought. This way, a mortgage broker’s guidance could also save you a lot of money over the life of your mortgage.

7. The benefit of convenience

As much as we remain occupied in our lives, it’s fair to assume that one would not have the time to find the best bargains on mortgage rates. With work and other responsibilities on your head, you wouldn’t have the energy nor the time to negotiate with the bank, credit union, or company, so you would eventually end up taking up whatever is easier to get.

However, if you hire a mortgage broker, he will simplify the process for you. You wouldn’t even have to lift a finger and the mortgage broker will take your details, find the best packages available, and then allow you the freedom to make your pick. Regardless of anything, you will have the convenience of getting everything done by a professional – someone who knows exactly what he’s doing and the objective he has to achieve as well.

The broker will also be available for you if you have any questions, and you can present your financial situation to him in hopes to receive the best advice that he can provide you with.

Mortgage Finance Comparewise
Get the best mortgage deals here

Claim the best mortgage rate with Comparewise. Shop now

Final words

In short, if you plan to hire a mortgage broker, you’re only making life easier for yourself. Not only that, but you will also be able to benefit from lower rates and better packages – it’s better to have somebody else do the hard work for you than pay the price of not being aware of such a convenience!

You might also like…

FAQs aboutMortgage Broker

What is a mortgage broker?

A mortgage broker is someone that deals with banks or other lenders for a home loan. A mortgage broker will then suggest a good home loan according to your situation.

Should I hire a mortgage broker?

Yes. Mortgage brokers are very knowledgable when it comes to home loans which means they can give you lower rates, access mortgage packages and find you the best lender.

How much is a mortgage broker?

It depends on who you choose, a mortgage broker will charge you a fee directly. You can always look around online to have an idea of how much you would have to pay.

What should I look for in a mortgage broker?

Always check if the mortgage broker has a license through a professional/financial institution and trusted recommendations.

What should I bring before meeting with a mortgage broker?

It’s simple. Have a list of what you’re looking for and what you can afford so that the mortgage broker can give you the best option.


May 30, 2021
Co-authored by

You may also like

If you’re in the market to buy a home, navigating through the world of real estate may ...
Do you need a new home for your expanding family and want to know how to port a mortgag...
If there is one thing you should know as a homebuyer, it is how to calculate your mortg...
When you consider how to buy a house in Canada, there are many factors to review. Homeo...
When investigating how to refinance your mortgage, you may plan to use the same lender ...

Car loan?
Personal Loan?

Top deals await you just a short
application away!