Mortgage brokers are all over the news, and there are good reasons for this. Current mortgage broker rates are among the lowest mortgage rates in the industry, which often means that a broker mortgage is the most affordable choice when you need a home loan. We are the top online resource for those who are interested in the best Canadian broker mortgage rates. Because we have access to several brokers and lending institutions, we can help you find the broker who will best meet your specific mortgage needs. You will also be able to find out more about the ins and outs of mortgage brokers and their rates when you consult this guide and the other informative pages on our site. Read on to find out more about broker rates, and then choose a rate to get started on the path to an affordable mortgage.
Should I Choose a Mortgage Broker or a Bank for My Loan?
When it comes to getting a mortgage loan in Canada, residents have two primary choices: They can choose to work with a bank directly, or they can choose a mortgage broker. Many people choose to work with their existing bank or another lending institution directly, and so they have access only to the mortgage rates offered by said bank. Those who choose a broker, however, are not limited to the rates offered by one lending institution.
Mortgage brokers are not lenders per se. Instead, they partner with banks and other entities that offer mortgages in order to offer the best mortgage rates to home buyers. Brokers essentially shop your mortgage around to several different lenders in order to get the lowest interest rate for your loan. They are intermediaries between you and several lending institutions that advocate in your behalf for the best loan terms.
Over the past few decades, Canadians have increasingly turned to mortgage brokers to get home loans. It is not difficult to see why. After all, mortgage brokers offer their clients some distinct advantages:
• Canadian broker mortgage rates are often far lower than what home buyers can obtain by working with a bank directly. Obviously, this is due to the fact that the broker shops home loans around to several different lenders. Banks and other lending institutions must compete for your loan, and this drives down interest rates.
• Mortgage brokers are often able to offer innovative financing products that are unavailable at traditional banks. Because they work with several different lending companies, they can find loans for people who might not otherwise be able to use a traditional bank for their mortgage loan.
• It is far more convenient to hire a mortgage broker to find you the best loan than it is to find the best loan yourself. If you want to compare loans from several different banks directly, you must fill out the paperwork for each bank. A broker, on the other hand, takes your application and does the legwork for you by shopping your loan around for the best broker mortgage rates.
• A mortgage broker is a specialist in the home financing industry. If you work with a traditional bank, you may end up with a loan officer that does not work exclusively with mortgages. While such a person will be knowledgeable, he or she will not know as much about mortgages as a broker who concentrates on home financing.
• Many mortgage brokers will work with you to develop a plan to help you pay off your mortgage before the amortization period ends, thereby saving you thousands of dollars in interest over the life of your loan.
Of course, not everyone chooses a mortgage broker. For many people, bank mortgage rates are a better choice than broker mortgage rates in Canada. Here are some reasons why some people choose a bank over a broker for their mortgage:
• Although mortgage brokers may be able to get you an excellent mortgage rate, they may also make your financial life more inconvenient. If you get a mortgage from your existing bank, you will not have another institution to remember, and it will be easier to structure a regular payment plan. A mortgage broker may end up getting your mortgage from a different bank, which can be less convenient than borrowing from the bank where you currently do business.
• Current broker mortgage rates are not always better than the rates you can get at your own bank. In fact, some banks offer loan discounts to their existing customers that beat the loan terms they can get from a broker.
• Because banks work with several different types of accounts, they can also help you develop a strategy to pay off debt and increase your savings when you choose a bank for your mortgage.
Who Benefits from Mortgage Broker Rates in Canada?
Since mortgage brokers are so popular in Canada, there must be thousands of people who benefit when they choose a broker over a bank for their mortgage. First, those with an income below average may benefit because a mortgage broker, in shopping loans around, may find an institution that can offer a loan that is affordable to those who do not earn as much as others. Second, individuals who are very busy will benefit from a broker because the broker will do the hard, time-consuming work of comparing loans from several different institutions. Third, those with poor credit can benefit from the best broker mortgage rates because brokers often find loans for individuals with low credit scores who cannot get a loan from their bank. Finally, individuals who want to save the most money on a home loan usually benefit more from a broker than they do a bank because brokers shop loans around to different lenders to get the best rates.
Mortgage Brokers: Interesting Facts and Statistics
Want to know more about brokers and broker rates? Here are some interesting facts:
• In 1999, mortgage brokers accounted for 14 percent of all mortgages in Canada. Currently, just under 50 percent of all mortgages are secured through mortgage brokers.
• Mortgage brokers work with more than 30 lending institutions across Canada to get your mortgage. This number increases almost every year.
• Mortgage brokers can be contacted outside of normal banking hours. In fact, you can receive a phone call from a broker in 1-3 hours when you fill out a form on this page.
Get the Best Broker Rates Today!
What are you waiting for? The lowest mortgage broker rates are just a few clicks away. Choose a rate on this page or fill out the online mortgage application form to access the lowest broker rates in the industry.
