Did you know the biggest difference between getting your mortgage from a bank versus a mortgage broker is that the bank only has access to their products, while at The Mortgage Centre we have access to many reputable and long-standing mortgage lenders who have unique products to fit your financing needs?
You may think it’s easier to have your mortgage with the current bank you work with – that’s not so! All mortgage lenders have online access and excellent customer service via telephone. When was the last time you went to your bank to complete a transaction that could have easily been done online or over the phone? Telephone banking with your own bank can be a pain. We’ve hand-selected 14 reputable institutions that provide excellent mortgage financing no matter what your financial situation is, while providing a high level of customer service.
Here are a few things to keep in mind on mortgage financing through your bank versus a mortgage broker.
Bank Fees Add Up: One of the biggest money makers for a bank are the fees; this is especially true with overdraft charges. Some bank lenders and credit unions require that you open a bank account. Although this is not always the case, at The Mortgage Centre we negotiate the finer details to help you save money.
Penalties Hurt: Banks are a business and the mortgages and loans you sign with them are contracts. If your mortgage is with a traditional bank, they can often come with steep penalties when broken. When signing for a mortgage or loan, be sure to always read the contract thoroughly and make note of any penalties. Generally speaking, big banks typically have higher penalties to break a mortgage than wholesale mortgage lenders.
Most bank loans have terms of five years or more – but a lot can happen in that time and the majority of Canadians break their mortgage mid-term. Even if you don’t think so, you just have to take a look at the current situation in the world to realize just how quickly things can change. While your bank may compete on rates, the high penalty is in the fine print and often the calculation is not explained. As your mortgage broker, we would be happy to help you locate the best mortgage contract with minimal penalties.
Your Credit Health: At The Mortgage Centre we pull one credit check for all the lenders we work with, which helps minimize the adverse effect that multiple credit checks can have on your credit history. We also don’t “push” credit products which can be annoying and also has an adverse effect on your credit history.
It’s our business to know the mortgage market and who’s offering what: It’s simple to do a quick search online to find the institutions that have the best mortgage rates. But you don’t know which mortgage lender is providing that rate, and what the fine print is. We find that most of those online mortgage search tools are “bait and switch” tactics and before you know it, you have a mortgage from a lender that you haven’t heard of and you’re not sure if your mortgage is even going to fund.
What about your mortgage renewal? While most people will stay with the same bank for years, there can be a cost for that convenience. More often than not, it’s true that individuals who are renewing will be offered a higher rate than a new customer. Shopping around, especially at renewal time, is a great way to ensure that you are getting the best rate available to you. When you are a few months away from renewal, contact us and we’d be happy to help you determine if you are getting the best mortgage before you renew.
Finally, when dealing with a bank for your mortgage, it can help to get third-party expert advice. As a mortgage broker, we have access to additional mortgage products beyond your current bank and access to even more options to best suit your needs. Contact us today to book your virtual appointment or download my MCC Home Centre App and select us as your dedicated mortgage broker!