Mortgage Brokers or Lenders – YOU be the Judge

Mortgage Brokers or Lenders? What’s the difference you ask?

You’ve found your property. You’ve chosen your new home plan and now you’ve decided to just go to your bank, because you’ve always done business there. You’ve also decided to do a bit of “comparison rate shopping” at a few other banks.

Did you know that shopping the banks is NOT a good idea? Why?

Well, you did know that each time you apply (or make a serious enquiry) that a credit check is done. So what – you ask? Did you know that each enquiry on your credit file is a mark AGAINST you?

Each time you enquire it is noted and when another bank sees you’ve been shopping, they just drag it out (sometimes bringing you past your condition deadlines in your purchase agreement). Or they may say they’ll refuse you unless…. you agree to a larger downpayment, higher interest rate, etc. Not only that, because you thought you were doing the smart thing by shopping, you actually caused your credit score to go down!

What are your options?

Shop, of course – but through a Mortgage Broker. They’ll take your information once and shop the best rates for you before committing to a specific lender. Do they get a fee? Of course. No one works for nothing. You wouldn’t, but do enquire as to what their fee is, now much specifically, and who pays BEFORE deciding to go with their services.

But, you’ve got a great relationship with your bank. Who cares about Mortgage Brokers or Lenders?

Mortgage Brokers or Lenders   YOU be the Judge

By all means, if you’ve got a great relationship with your bank and you’re happy and they give you a great rate – that’s the main thing. Keep your lender.

In the interim – happy shopping!