When it comes to getting a mortgage, are banks your best bet?
Sometimes, they can be, but the benefits of the bank vs. mortgage brokers is often misunderstood.
A mortgage broker, like Jeff Evans with Canada Innovative Financial Mortgage Architects, can provide a wider array of lending options for a better financial fit.
“A lot of times people are drawn by the brand name and recognition of the big banks, the ease of walking through their front door and talking to someone about their mortgage products,” Evans says. “It’s a standard thing. People seem to think of the banks first, rather than a mortgage broker.”
But when clients realize what mortgage brokers can offer they are surprised.
“I often have the ability to make things happen that their bank is unable or unwilling to do,” Evans says.
Part of that comes from a broker’s ability to tap into a wide variety of lenders, which also includes some banks.
“We have prime lenders, non-prime lenders, private lenders, all of whom can work well for the client’s individual circumstances,” he says. “I try to provide my service as a value add. I’m not just a rate supermarket that clients come to and ask, ‘What’s your best rate?’”
Brokers like Evans work with the client to ensure they have terms that best match their situation, such as a fair mortgage payout penalty.
“Most of my lenders have a way of calculating a penalty on a fixed rate mortgage that is fair and reasonable,” Evans says. “Basically, all the chartered banks and some credit unions calculate what’s called an interest rate differential penalty in such a way the client gets gouged quite badly if they pay out their mortgage before the maturity date.”
Brokers also work hard to assess their client’s personal financial picture when sourcing mortgage options.
“I look at their financial circumstances in great detail to try and structure things that give them options. Most often, a bank agent won’t dig any deeper than what they have to do to get an approval,” Evans says, adding he can take into account a variety of scenarios, including the potential extra revenue stream of a secondary suite on a property to help increase the loan amount.
Child tax benefits are another possible factor.
“Many of my lenders support it, because that can potentially add several thousands of dollars to someone’s income, which could mean the difference between getting financing for the new home or not,” Evans says. “I don’t know if they even ask that question at the banks. ”
Evans stresses he uses all the tools at his disposal as a mortgage broker to create a solution traditional financial institutions sometimes can’t.
For more information on how a mortgage broker can make a difference to you, visit online at: bc-mortgage-broker.ca, or call 604-381-1292.