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An interesting discussion that came up the other day was how there’s still a perspective that Mortgage Brokers only do mortgages if you have bruised credit or couldn’t get approved at the bank. Needless to say, this piqued my interest and I was quick to jump into the conversation and voice my opinion.
The argument was that if you are a Triple A client, you should be going to the bank, and that brokers were for people who the bank says no to. They said that brokers only deal with clients that have bad credit or those who don’t have income.
My first thought was, “you must still use a cassette player or own a television with an antenna or worse yet, think the earth is flat”. I will agree, once upon a time, long, long ago this was a true statement. In the modern world where we drive cars and no longer ride horses, it’s a bit different. Yes, I may be a little “extra” but the idea was so absurd to me that I really wondered what rock this person crawled out from under.
So here are some things to consider as to why you should use a Mortgage Broker:
Brokers have many lender options for Triple A clients, often with more competitive rates and products
Brokers can still submit to some of the Major Banks
Banks say no to a lot of people that have great credit and solid income because they only have one option to sell that may not fit the clients needs or circumstances
50% of Canadians have some form of self-employed component to their income and thus have challenges with the banks
Brokers tend to have a stronger repeat and referral relationship with their client’s vs Banks
Brokers look out for their client’s best interest
Bankers look out for the shareholders best interest
A bank will not offer their clients the best option at renewal – ask anyone that has recently received renewal docs from their bank
A typical Banker (not mobile specialist) is not fully trained nor has the experience necessary to advise about mortgages – they’re typically younger and only in their role for a short period of time
These are just a few examples as to why someone should work with a broker. There are many more reasons but I’ll save that for another day.