Don’t Be Fooled by These 4 Common Mortgage Broker Myths
Posted in Mortgage News:
If you’ve never considered working with a mortgage broker, it might be because you’ve heard a few things about them that just aren’t true.
Mortgage brokers can be incredibly helpful when it comes to finding a great deal on a loan. In fact, many of their clients end up saving thousands—savings they may not have found if they had tried navigating the mortgage process alone. Because brokers are independent and not tied to any one lender, they’re able to search across a wide range of mortgage products to find the one that best fits your financial situation.
Not only that, but some lenders offer brokers exclusive rates and products that aren’t available to consumers dealing directly with the bank.
Despite these advantages, some people still believe a few persistent myths about mortgage brokers. If any of these sound familiar, it may be time to take a fresh look and discover the real value a broker can offer.
Myth #1: Mortgage Brokers Are Expensive
In most cases, this simply isn’t true. Mortgage brokers are typically paid by the lender after your mortgage closes, meaning you don’t have to pay out of pocket for their services.
So not only do you get access to their experience and wide lender network—you also get it at no cost to you.
Myth #2: All Mortgage Brokers Work for the Banks
This is completely false! Mortgage brokers are independent professionals, not bank employees.
They don’t work for any one lender, and their job is to understand your financial goals and help you find a mortgage that suits your unique needs. That includes securing the best interest rate, the most flexible prepayment options, and terms that are favourable in case you need to break your mortgage early.
Myth #3: Mortgage Brokers Only Help People with Bad Credit
While brokers can be a great resource for individuals with credit challenges, that’s far from their only role. Most borrowers work with a broker to find a better deal than their bank can offer, whether they have excellent credit, average credit, or something in between.
In many cases, brokers can access better rates and terms than what’s advertised at your local bank branch.
Myth #4: Mortgage Brokers Are Just Bank Representatives
Again, this is incorrect. A bank representative may be called a specialist, advisor, or consultant—but they are not mortgage brokers.
Bank reps are employed by a single institution and are only permitted to sell that bank’s mortgage products. They don’t have access to other lenders, and they’re not licensed mortgage brokers.
By contrast, a licensed mortgage broker has completed regulated training, adheres to provincial licensing standards, and can shop the market across dozens of lenders to find the best solution for you.
Now that you have a better understanding of what mortgage brokers do—and what they don’t—it might be time to take the next step and see how a broker can help you.
Call us at 403-460-7707 or Contact Us online to speak with a mortgage expert.