Is It Better To Use A Mortgage Broker or Bank?

When you need a mortgage to buy your first home, invest in real estate or refinance your current mortgage, then it’s time to choose whether to use a bank or the services of an independent mortgage broker. Both offer loans; however, they are different ways of getting approved for one. That is why most people will choose one option over the other option. It is a personal decision coupled with individual preferences.

The big question is, which route should you choose when looking for a mortgage?

Let’s start with a simple example. If you were to go into a bank and need a loan for $150,000, the bank would look at how much money you make, your credit history, and your debt load before offering you a rate. They will base their offer on this information and what they deem is the right loan for you.

If you decided to go with a mortgage broker in Oakville, they would also look at your income, credit history, and debt load before coming up with the best option for your situation. The difference is that instead of applying to just one bank or lender, they can shop around for rates in this highly competitive marketplace to get the best deal. They would do this by contacting you to fill out a loan application and then submit it to a number of lenders to see who will give you the lowest rate.

The choice between going with a bank or broker comes down to whether you want an easy process or to save money on your mortgage. If ease of applying is what you’re looking for, then a bank will do just fine. However, if you’d like to have more control over your finances and would instead save money on the financing of your home, then going with a mortgage broker Oakville may be a better option for you.

Remember that a mortgage broker can get you loans from various lenders and banks; they do not have to go through just one. It means that you will be able to shop around for the best rate possible and find some great deals that may only be available from smaller, local banks.

With mortgage brokers, you also benefit from having one person handle your entire application from start to finish. It can make things easier when something comes up because they will deal directly with what needs to be resolved. In this way, a broker is well worth considering when going through your bank or using a broker to finance your mortgage. You need to know what you need and your budget and seek more advice when it is not clear.  

Next, you need to get a mortgage, look at the different options. It would be best if you learned the different proceses, the pros, and the cons. Getting a mortgage from a broker or a bank is a good idea; what is advisable is that you understand the procedures and all the details, hence a better decision.