Advantages of Mortgage Brokers
Here are the benefits of getting a mortgage through a mortgage broker:
- Mortgage brokers compare products and rates from multiple lenders to offer you a wider selection.
- A mortgage broker may be able to offer you a discounted rate
- that you would otherwise not be able to acquire on your own.
- Mortgage brokers are legally obligated to work in your favour, so there is never any question about whether they are on your side.
- Mortgage brokers can access secondary lenders or “B-Lenders” who offer easier approvals, although sometimes at a slightly higher interest rate.
- The relationship between an experienced mortgage broker and a lender can help sway the process in your favour.
- The broker is paid by the lender who gets your mortgage business, so there is no cost to you for this service.
Disadvantages of Mortgage Brokers
Here are the drawbacks of getting a mortgage through a mortgage broker:
- Not every lender works with mortgage brokers, so you may still find a better product and rate by shopping around.
- Securing a mortgage through a broker may take longer and may require more paperwork, since you don’t have an existing relationship with them like you may have with a bank. This is especially a concern if you have a tight deadline for buying your home.