Questions From My Kids: What is the Difference Between Banks and Mortgage Brokers
Updated: Nov 4, 2021
What is the difference between a mortgage broker and a bank? This is another great question from my kids that I wish more first-time homebuyers would ask.
Mortgage brokers are different from a bank because they have the ability to shop around different mortgage lenders versus a mortgage specialist at a bank, who can only work with the bank’s propriety products.
What happens for most first-time homebuyers, and current homeowners too, is that they often go to their bank first because of convenience. And what I find is that most first-time homebuyers don’t even know what a mortgage broker is until after they buy a home.
Does that mean your bank offers a ‘bad’ mortgage? Absolutely not! As I said before, I still have access to many of Canada’s banks and credit unions’ mortgage products and use many of them for my clients. However, if you only shop at your bank, you could miss out on a more fitting mortgage product.
Through my brokerage, Quantus Mortgage Solutions, I have access to over 35 mortgage lenders across Canada. This includes banks, credit unions, monoline lenders (they only deal with mortgages), private lenders, etc.
My job is to take your pre-approval application and filter through all these mortgage lenders to see which mortgage product is the best fit for you and your financial objectives.
It’s What Works Best For You
At the end of the day, whether you get a mortgage from a bank or a mortgage broker, you’re still likely to get a great mortgage product.
The advice I have for first-time homebuyers is to not feel like they have to use their bank for their mortgage. Shopping around before accepting the first mortgage offer you get is a great way to know if you’re getting a good deal. Even if you think you’re going to move forward with your bank, you can still reach out to me to review the deal and make sure it’s the right fit.
If you are looking for some help with your first home in Calgary or the surrounding area, I’d love to help you! I am always here to share my knowledge and experience with those in need.