Why a Mortgage Broker is better than your bank.

The first step to buying is getting that mortgage pre-approval out of the way, and I always recommend to my clients to work with a mortgage broker and not their own banks. There are several reasons for this, and they all stem from the fact that your bank is limited to working with what they can offer, while a broker works with what every bank and other financial institution can offer. They have more flexibility, and can even get different companies to compete for your business. Here are a few examples of how they are a better choice:

Lower interest rate: I can almost guarantee you'll get a better interest rate through a mortgage broker than through your own bank, no matter how long you've been a customer there. The bank can give you their lowest rate, but almost always there is someone else out there who can do you one better - and a broker can find that gem for you.

More mortgage options: Banks have a limited number of mortgage types available to offer. Mortgage brokers have access to several kinds of product, from 100% or even 103% financing, to cash back options and more. They can give you options your bank will never be able to. Brokers tend to be a little more creative and flexible as well, they may come up with options you never considered before.

Mortgage assumption: You've found the perfect house, and now you discover the current owners have an assumable mortgage that will save you thousands of dollars a year - what a find! Trouble is, if your pre-approved mortgage is through your bank, and their assumable mortgage is from somewhere else, you'll have to start from scratch with your approvals at the new bank. This can cost valuable time while trying to get your subjects removed, and you now have a new relationship to build with a complete stranger from another bank. If you worked with a mortgage broker, they could easily work the assumable mortgage for you - no new applications, no surprising new relationships.

When looking for a mortgage broker, it's important you seek out a good listener, and someone who really understands your financial situation. If you'd like a recommendation, or have any questions, I'd be happy to help, as always.

Have fun,
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