Full disclosure: as a mortgage broker, my advice is undeniably biased. However, I genuinely believe that consulting with a mortgage broker is crucial when you're securing a mortgage, whether for purchasing, refinancing, or renewing. A skilled mortgage broker can be invaluable, offering tailored advice and insight that aligns with your financial situation and long-term plans. This is where brokers truly excel.
Even if you ultimately choose to work directly with your bank, I strongly recommend speaking with an experienced broker. We’re passionate about mortgages and are more than happy to provide you with peace of mind, ensuring that whatever mortgage you choose is the right fit for you.
That said, it's important to clarify some common misconceptions about what mortgage brokers can and cannot do:
Mortgage Brokers Will Always Get the Lowest RateThis isn’t necessarily true. While brokers can often find competitive rates, they cannot guarantee the absolute lowest rate in every case. Lenders' interest rates are based on bond yields, investor requirements, lender costs, and profit margins, etc. Brokers do not have the authority to dictate rates to lenders; it’s the other way around. Almost all mortgage brokers have access to the same rates, so any broker advertising that they have the lowest rates in town is probably misleading you.
Our Service is Free
This is mostly true. Mortgage brokers are compensated by lenders through finder's fee commissions. For a clean, well-qualified borrower who falls within lenders' base lending guidelines, a mortgage broker's service will typically be free of charge. However, if a broker needs to work with alternative or private lenders, they will likely charge a broker fee. It's always good to confirm this with your broker upfront to avoid any unpleasant surprises.
Mortgage Brokers Only Do Deals for People Who Can't Qualify at Their Own Bank
This is a misconception. Brokers work with a broad range of clients, including those who are well-qualified. They provide value through their access to diverse mortgage options and expertise in finding the best fit for your needs.
Mortgage Brokers Work with Dozens of Lenders
This is somewhat true! While brokers do have access to dozens of institutions through their parent brokerage—including banks, credit unions, and monoline lenders—they typically concentrate on a select group of preferred lenders. By focusing on 4-5 key lenders, brokers build strong, direct relationships with underwriters and support staff at each lender.
We Can Work Lenders Against Each Other to Get a Cheaper Rate
Brokers can use their relationships with multiple lenders to negotiate better terms, but they cannot pit lenders against each other in a direct competitive manner. Their goal is to find the best available rate and terms based on your specific situation.
With these misconceptions behinds us I will repeat how important it is to always consult wirh a Mortgage Broker before making any decisions on your property . Mortgage Brokers are easy to access, independent with no direct institutional affiliations allowing for un-biased mortgage advice and free to work with...most of us also LOVE chatting mortgages!
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