Canadian Mortgage Brokers vs. Banks – SERVICE
A Canadian mortgage broker (associate) is a self-employed professional that specializes in real estate financing and works specifically for you, the client, whereas Canadian bank specialists are employed specifically by the financial institution and works solely for that institution.
Every client is different and as such each one has a unique situation. The Unbeatable Mortgage Team treats all our clients with the attention and respect they deserve. Our mortgage associates at can help you to secure mortgage loan products in Canada at the lowest mortgage loan rates with out any hassles.
Depending on your Province, mortgage brokers must be licensed and are subject to a strict set of requirements. As well Mortgage Professionals must take continuing education courses in order to maintain their accreditation. Bank specialists in comparison are not licensed and require no formal training. Therefore because of the licensing requirements and continuing education that a mortgage broker has to obtain and sustain you know when dealing with them that they are always up to date with all current Canadian real estate and mortgage financing market rules and regulations which obviously will ultimately instil the utmost confidence in dealing with them vs. dealing with a Canadian bank specialist.
Canadian Mortgage Brokers vs. Banks – PRODUCTS
The benefit of using mortgage brokerages, like The Unbeatable Mortgage Team, is the fact that have the ability to shop multiple Canadian lenders (banks) that write Canadian home loans for all types of credit clients. A mortgage broker has access to multiple Canadian home loan products whereas your local bank or credit union only has access to their own individual products.
Because mortgage brokers don’t work for a specific lender, you’re assured that you will be given impartial advice. The Unbeatable Mortgage Team works closely with both large public Canadian banks and small private Canadian trust companies. As a result, we are able to shop the market for you, our client, to access the best possible Canadian mortgage products. A bank specialist has a limited number of their own institutions products and while it may not be the best mortgage product out there, they will do their best to sell you their institutions mortgage product even though it may not be the best product for you.
Canadian Mortgage Brokers vs. Banks – CREDIT REPORTS
When a Canadian mortgage brokerage, pulls a credit bureau we only need to pull it once to be able to evaluate your situation and be able to recommend mortgage options. This one inquiry allows us to shop your mortgage to multiple Canadian Lenders.
The Unbeatable Mortgage Team will evaluate home buyers applications, analyzing each person’s credit situation to determine which Canadian lender is the best fit for that person’s needs. We submit the home buyer’s mortgage application to one or more lenders, and works with the chosen lender until the loan closes. A good mortgage broker can find a lender for just about any type of credit. Mortgage brokers can often find a lender who will make loans that a bank refuses (example: due to problem credit).
In comparison to your local bank where they pull your credit report and if you are approved or not or are just not satisfied with their offer, then you are left shopping elsewhere and having your credit report pulled again and again. This causes client frustration and ultimately costs you multiple credit pulls which negatively affects your credit score. The overall effect with the lower credit score is that you are not eligible for the same loan programs as before and in the end you will ultimately pay more for your mortgage.
Obtaining Your Own Credit Reports
Order your credit reports and scores from both Equifax and TransUnion credit reporting agencies before you visit a bank or broker. Personal copies of current reports should provide enough details for them to give you an opinion of the types of loans they can offer you.
The lender you decide to use will access your credit files, but taking your personal copies to the initial interview avoids multiple credit pulls that can lower your scores. Requesting your own credit reports does not affect your scores.
TIPS FOR SELECTING A CANADIAN MORTGAGE BROKER
When choosing a Canadian mortgage broker you should consider the following tips:
- The mortgage broker should help you decide on whether getting the “best available rate” is more important, or if you want to deal with the institution that will actually lend you the money and provide you with service after funding.
- Make sure that you feel comfortable with whom you are going to do business. Can this person answer all your questions satisfactorily? Does he/she act in an ethical and professional manner?
- Beware of high-pressure sales tactics. You should never accept a loan that you do not understand. You should walk away from anyone who pressures you or makes you uncomfortable. You are not obligated to proceed at any time in the process.
- Ask friends, family and co-workers for references. They are a valuable resource, and usually can provide the name of someone they have used and found to be trustworthy. Ask them if their broker communicated with them throughout the loan process. Referrals are probably your best way to find a good Canadian mortgage broker.
- Beware of claims that seem “too good to be true,” and run from upfront fees. For example when you hear “no closing costs” little red flags should go up.
So in conclusion, if you have the ability to use the services of a professional Canadian mortgage broker and have that mortgage broker do all your mortgage leg work at no cost, why would you not take advantage of the offer?