What is a Mortgage Broker
What is a Mortgage Broker
What is a Mortgage Broker
Mortgage Brokers, especially in London, have become increasing popular in recent years. While at one time people dealt almost exclusively with their banks, the use of a Mortgage Broker is becoming increasingly common.
Mortgage Brokers negotiate on your behalf with all of the banks and lenders in order to get you the best mortgage rate and terms available. While your bank will offer you their standard mortgage rate, a Mortgage Broker will ensure that all of the banks and lenders compete to get your business
There are a number of differences between a Bank and Mortgage Broker, listed in the following table:
| Bank | Mortgage Broker | |
|---|---|---|
| Market Share | 60% | 40% |
| Description | Chartered banking institution with personal banking, credit card, loan and mortgage services. | Licensed mortgage specialist with access to multiple lenders and mortgage rates. An intermediary whose commission is paid by the lender providing the mortgage product. |
| Lender | Yes | No |
| Puts application together | Yes | Yes |
| Examples | TD, RBC, BMO, CIBC, Scotia | Real Mortgage Associates, The Mortgage Centre, Dominion Lending, Safebridge Financial, CanWise Financial |
| Pros | Banks allow you to consolidate your services with a provider you have an ongoing relationship with and have deemed trustworthy. | Mortgage brokers essentially ‘shop’ around, negotiate for you, and present the lowest rate on the market. Volume discounts achieved by mortgage brokers are passed directly to you. |
| Cons | Banks can only access and offer you their own rates and products. Banks will regularly give discounts on their posted mortgage rates; however, you are responsible for this negotiation. | Mortgage brokers are a less familiar avenue, and first-time home buyers would not have pre-existing relationships with them. |
What is a Mortgage Broker
In short, Mortgage Brokers work with multiple mortgage lenders, on behalf of their clients, to obtain the most favorable terms and best mortgage rates available.
So Why are Banks so Popular Compared to Mortgage Brokers?
Banks are considered more popular than Mortgage Brokers simply because most people deal with the banks everyday, so they are accustomed to working with the bank. Yet this is changing.
According to the Mortgage Professionals Canada, the old Canadian Association of Accredited Mortgage Professionals, total mortgages originating from Mortgage Brokers was up to 40 % in 2009, from 26 % in 2003. Clearly the public is seeing the benefits of shopping around for better mortgage rates, rather than simply using what is offered by their own bank.
Mortgage Brokers in London Ontario
Mortgage Brokers have become increasingly popular in London Ontario as the housing market has continued to heat up. With prices of homes in London rising at a rapid pace often the traditional banks (TD, Scotia, RBC, etc) have more stringent qualification standards. Mortgage Brokers can help by assessing all of the different programs available by dozens of mortgage lenders, and placing your mortgage with the lender that fits your unique circumstances.
Contact Mark Mitchell – Mortgage Broker London Ontario
Mortgage Brokers in London – Fastest Response Time
I understand that when you have questions about your Mortgage that a a few hours to receive a response can seem like an eternity! I specialize in providing a fast response time to all inquiries, questions or comments. My Yelp Page shows an average of 10 minute turnaround time for all responses.
As I do with all of my clients, when we are awaiting a response from the mortgage lender we will touch base every day just to keep in constant contact. I believe in keeping my clients well appraised of the status of their applications. Nothing is worse than not being in the know!
Please Feel Free to Call or Text me at (519)860-2102.
920 Commissioners Road East
London, Ontario
