In previous years, prospective home buyers were limited with options & could only go to a bank when it was time to negotiate a mortgage. Nowadays, first-time buyers, or existing owners, have other routes to explore, such as using a mortgage broker.
When trying to decide whether to go with one of the “big 5” or with a mortgage broker, there are a few key factors to consider.
The “big 5” are banking institutions such as TD, RBC, BMO, Scotiabank, and CIBC and are limited by the fact that they can only offer you their own rates. In my experience, going into the branch can be a bad idea because you really want to deal with someone who is a professional in the area. If the bank is your only option, ask for a Mortgage Specialist, such as Sue Danychuk, a trusted key partner who has been with Scotiabank for over 25 years. Someone like Sue does mortgages everyday, where as a branch employee often does not.
As I previously mentioned, your other option would be to get in contact with a mortgage broker such as Kirk Eaton; another trusted partner who is able to shop around to lenders, which actually includes the big 5 banks. Working with a mortgage broker is a more personalized experience as they are self-employed professionals who will work hard to keep you as a client for life.
Mortgage brokers take a lot of the leg work, and possible stress, out of the process for you. They will:
➔ shop around for you
➔ negotiate on your behalf to get you the lowest rate
➔ present you with the best rate
A few other advantages to using a broker are their fees are paid by the lender, meaning that there will be no cost associated by working with them, and they have access to volume discounts which they can pass on to you. Working with a mortgage broker is a one-stop shopping experience, in a sense.
Whether you decide to choose a more personalized experience and work with a mortgage broker, or seek help from a bank, you have to do what makes you most comfortable. Many people prefer to have all their finances in one place – like their everyday bank. Others don’t prefer to one way or another. Whatever you decide to do, I have contacts all over and can assist with finding a professional that suits your financial needs and wants.