CGYMortgage Mortgage Brokers Vs Bank

CGYMORTGAGE MORTGAGE BROKERS VS BANK

When looking for a way to finance the house you are buying in Calgary, one of the most important things you should know is that directly getting loans from a bank is not your only choice. It is a common misconception that eliminating the need for a “middle man” equates to reducing costs. What most people don’t know is that the middle man, also known as the mortgage brokers, can offer a lot of benefits that will not only help you cut down on costs but will also make acquiring financing for your house more convenient.

The role of mortgage brokers is to help house hunters find the banks or mortgage lending institutions that can offer the best mortgage rates and to ensure that all the legalities and paperwork involved in the financing are correct, up-to-date and legal.

Getting financing for your house is an important step. You definitely do not want to end up getting financing that is too expensive for your financial capabilities. A mortgage broker can help prevent you from falling into that trap.

But to further learn the difference about mortgage brokers and banks and which of these two you will choose to get you the financing help you need in acquiring a house, check out the following comparisons:

1. Convenience

Mortgage Brokers

Pretty much all the legwork is done by the broker. The broker will look for a financing institution, give you a variety of options and ensure that the documentation process is legal. All these can be done with minimum fuss and effort on your side. Many transactions with the brokers can be done with a phone call.

Banks

You will be the one transacting directly with the bank so that means putting in more time and effort in bank appointments. The process of transacting with banks aisre also highly bureaucratic so it can take a long time before you get approved for a loan. On the other hand, payment for mortgage loans may be easier if you have an account with the bank.

2. Loan Programs

Mortgage Brokers

Most mortgage brokers are affiliated with various lenders. With their connection, they can help you find a lender that will offer you reasonable loan programs even with a bad financial or credit record. Your broker can also help make the terms of the loan program more advantageous for you.

Banks

Because of the risks, especially if you have a bad credit standing or you are a client of the bank and they have access to your records, their loan programs can be on the conservative side. There may also be a lot of policies and payment terms involved. Additionally, they might not offer you their usual terms if you have a bad credit standing, which can be riskier on your part.

3. Communication

Mortgage Brokers

It’s easier to contact mortgage brokers because in order to keep their company afloat, they have to put customer service at the top of their priority. They will most likely answer questions promptly compared to banks.

Banks

The bureaucratic approach of banks in handling clients is a hassle to many. You might have to go through one person and then be directed to another when following up loans or securing them. Chances are, you will have to talk to at least three people from the bank when getting loans.

4. Cost/Fees

Mortgage Brokers

Contrary to popular belief, many ethical mortgage brokers will not charge you too much. You just have to know which mortgage broker to choose. If you look around for the most credible ones, you will be able to get loans without an unreasonably lofty cut from the broker.

Banks

The fees or interest rates from banks are usually inflexible. There’s not much room for negotiation.

5. Reliability

Mortgage Brokers

If you look for mortgage broker companies that have been in this business for a long time already, there should be no issues about the reliability. Many brokers are worth working with and can even get you connected to the right lenders. Transact with legitimate and credible brokers to experience the many benefits of having a middle man do all the legwork for you.

Banks

Banks, especially the bigger ones, are definitely credible but they are definitely not immune to mistakes. Proof of that are the many banks that have declared bankruptcy.

Don’t write off mortgage brokers from your list of house financing options. A good broker can really make the whole process painless and more convenient. This is something you will come to appreciate once you get into the stress of finding a new house, packing your things and moving. The cost of hiring a broker is nothing compared to the peace of mind and the convenience they can offer.

Just make sure you only work with an experienced mortgage broker. With ample experience in the house financing negotiating business, you can get the best deals that will give you lots of advantages.

CGYMortgage Mortgage Brokers Vs Bank

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    #120, 5720 4 St SE
    Calgary, Alberta
    T2H 1K7

  • Phone:(403) 407-1244

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