Should you Choose a Mortgage Broker or a Bank?

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When looking for a mortgage, you want to get the best rates and maybe wondering if you should choose a mortgage broker or a bank. Amidst talk of rising mortgage rates, interest rates still remain at historic lows. This increases the affordability of home ownership for the Canadians looking to become homeowners and their dreams of purchasing a house or Condo. The good news is there are many options when it comes to financing your home purchase. The decision to get your mortgage through your bank, broker, or other financial institution depends largely on your needs and requirements.

What are the differences?

Bank

When considering your bank, your personal banker knows your financial situation and you may already have a history with that bank and have established a relationship by having credit cards, and lines of credit and they can come up with a comprehensive strategy, you can improve cash flow, minimize your borrowing costs, and borrow to be better off. They can review your needs and wants to find the right products and tools for you. With a full range of personal banking solutions, your bank can help you reach all of your financial goals, from day-to-day banking to creating borrowing and investing strategies. Whatever way you decide, your bank may be a place to start to find answers to your financial and home ownership questions.

Mortgage Broker

Mortgage brokers deal with a few financial institutions and work for you in terms of paperwork and negotiating with lenders. They will also be your point of contact for everything related to your financing and a broker may be able to negotiate better rates than if you approached the lending institutions yourself. Mortgage brokers can assist if you have a less-than-perfect financial history and help secure a loan. Mortgage brokers are only paid when a loan is approved and signed, so they are motivated to find you the best rates and their assistance is provided without a fee.

There are many options when it comes to finding the best mortgage rate and the decision to get your mortgage through your bank, broker, or other financial institution depends largely on your needs and requirements. 

When searching for the best mortgage rates or Canadian bank mortgage rates, you can start your search by using our mortgage calculator to find the best rates and mortgage brokers in Canada.

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