{"id":736,"date":"2020-01-22T07:57:41","date_gmt":"2020-01-22T07:57:41","guid":{"rendered":"http:\/\/localhost\/mrc_blog\/personal-finance\/mortgage-brokers-vs-banks\/"},"modified":"2023-11-24T05:34:04","modified_gmt":"2023-11-24T05:34:04","slug":"mortgage-brokers-vs-banks","status":"publish","type":"post","link":"https:\/\/myratecompass.ca\/blog\/personal-finance\/mortgage-brokers-vs-banks\/","title":{"rendered":"Mortgage Brokers vs Banks"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_17 counter-hierarchy counter-decimal ez-toc-grey\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" style=\"display: none;\"><i class=\"ez-toc-glyphicon ez-toc-icon-toggle\"><\/i><\/a><\/span><\/div>\n<nav><ul class=\"ez-toc-list ez-toc-list-level-1\"><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/myratecompass.ca\/blog\/personal-finance\/mortgage-brokers-vs-banks\/#What_is_the_Difference_Between_a_Bank_Mortgage_Representative_and_a_Mortgage_Broker\" title=\"What is the Difference Between a Bank Mortgage Representative and a Mortgage Broker?\">What is the Difference Between a Bank Mortgage Representative and a Mortgage Broker?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/myratecompass.ca\/blog\/personal-finance\/mortgage-brokers-vs-banks\/#What_is_a_Bank_Mortgage_Representative\" title=\"What is a Bank Mortgage Representative? \">What is a Bank Mortgage Representative? <\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/myratecompass.ca\/blog\/personal-finance\/mortgage-brokers-vs-banks\/#Pros_Cons_of_Working_with_Banks\" title=\"Pros &amp; Cons of Working with Banks\">Pros &amp; Cons of Working with Banks<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/myratecompass.ca\/blog\/personal-finance\/mortgage-brokers-vs-banks\/#Pros\" title=\"Pros\">Pros<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/myratecompass.ca\/blog\/personal-finance\/mortgage-brokers-vs-banks\/#Cons\" title=\"Cons\">Cons<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/myratecompass.ca\/blog\/personal-finance\/mortgage-brokers-vs-banks\/#What_is_a_Mortgage_Broker\" title=\"What is a Mortgage Broker? \">What is a Mortgage Broker? <\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/myratecompass.ca\/blog\/personal-finance\/mortgage-brokers-vs-banks\/#Pros_Cons_of_Working_with_Mortgage_Brokers\" title=\"Pros &amp; Cons of Working with Mortgage Brokers\">Pros &amp; Cons of Working with Mortgage Brokers<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/myratecompass.ca\/blog\/personal-finance\/mortgage-brokers-vs-banks\/#Pros-2\" title=\"Pros\">Pros<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/myratecompass.ca\/blog\/personal-finance\/mortgage-brokers-vs-banks\/#Cons-2\" title=\"Cons\">Cons<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/myratecompass.ca\/blog\/personal-finance\/mortgage-brokers-vs-banks\/#How_to_Choose_Between_a_Bank_and_a_Mortgage_Broker\" title=\"How to Choose Between a Bank and a Mortgage Broker\">How to Choose Between a Bank and a Mortgage Broker<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/myratecompass.ca\/blog\/personal-finance\/mortgage-brokers-vs-banks\/#Finding_Your_Home\" title=\"Finding Your Home\">Finding Your Home<\/a><\/li><\/ul><\/nav><\/div>\n<span class=\"rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time:<\/span> <span class=\"rt-time\">4<\/span> <span class=\"rt-label rt-postfix\">Min<\/span><\/span><h3><span class=\"ez-toc-section\" id=\"What_is_the_Difference_Between_a_Bank_Mortgage_Representative_and_a_Mortgage_Broker\"><\/span><strong>What is the Difference Between a Bank Mortgage Representative and a Mortgage Broker?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>&nbsp;<\/p>\n<p>Is 2020 the year you purchase a home? If so, you might feel a little overwhelmed by all of the working parts of the process &#8211; one of which is choosing who to work with to obtain your mortgage. Two common options are banks and mortgage brokers. At the end of the day, both of them work towards getting you a mortgage, but they each have different strategies on how they get there. If you\u2019re looking to learn more about the difference between a bank mortgage representative and a mortgage broker, continue reading below.<\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_is_a_Bank_Mortgage_Representative\"><\/span><strong>What is a Bank Mortgage Representative? <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>&nbsp;<\/p>\n<p>Banks have provided mortgages to their customers for decades. When you book an appointment with a bank, you\u2019ll meet with a representative of the bank that will walk you through the process.<\/p>\n<p>&nbsp;<\/p>\n<p>When it comes to mortgages, banks on the overall level don\u2019t have your best interests at heart. Ultimately, they want to sell you their financial products so they can make money. However, at the individual level, bank representatives tend to develop close relationships with their customers. For this reason, the representatives tend to have a deep understanding of their customer\u2019s needs and goals. This can motivate the representative to find the ideal mortgage for you with a favourable interest rate.<\/p>\n<p>&nbsp;<\/p>\n<p>In addition, a mortgage client is desirable to a bank and they won\u2019t want to forgo the opportunity. Therefore, they may offer incentives such as a cashback bonus or payment of a home appraisal fees to secure your business.<\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Pros_Cons_of_Working_with_Banks\"><\/span><strong>Pros &amp; Cons of Working with Banks<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>&nbsp;<\/p>\n<p>Below are the advantages and disadvantages of working with banks:<\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Pros\"><\/span><strong>Pros<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>&nbsp;<\/p>\n<ul>\n<li><em>Comfortable Relationship.<\/em> If you\u2019ve been with your bank for years and years, there will be an extra layer of comfort and security when obtaining a mortgage. Should you have questions about the mortgage at any point, you\u2019ll also have a familiar place to go where you can have your queries handled.<\/li>\n<li><em>House Finances in One Place.<\/em> If you get a mortgage with your primary bank, it can be convenient to have all your finances in one place.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Cons\"><\/span><strong>Cons<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>&nbsp;<\/p>\n<ul>\n<li><em>Bad Credit is an Issue.<\/em> Bad credit is a big no-no with banks. This means that if you don\u2019t have the greatest credit, you\u2019ll have a lot of trouble getting approved.<\/li>\n<li><em>Motivated to Sell One Product.<\/em> Banks are only motivated to sell one product: their mortgage. They aren\u2019t in the business of finding you the best interest rate.<\/li>\n<li><em>No Competitive Rates.<\/em> Bank mortgage representatives aren\u2019t able to offer competitive rates because they only have one product to offer and have no control over the interest rates.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_is_a_Mortgage_Broker\"><\/span><strong>What is a Mortgage Broker? <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>&nbsp;<\/p>\n<p>Before we dive into what a mortgage broker is, let\u2019s have a mini history lesson! Several decades ago, individuals looking for a mortgage would simply visit their local bank. There weren\u2019t many other mortgage lenders on the market at this time meaning that your local bank was the easiest and most optimal solution. But, over the years, banks have charged more fees and provided less friendly customer service. This caused people to have little faith in banks and they began to search for more competitive <a class=\"wpil_keyword_link \" href=\"https:\/\/myratecompass.ca\/deals\"  title=\"offers\" data-wpil-keyword-link=\"linked\">offers<\/a> on the market.<\/p>\n<p>&nbsp;<\/p>\n<p>Enter the mortgage broker. A mortgage broker is a licensed professional that works with various lenders to find their customers the best <a class=\"wpil_keyword_link \" href=\"https:\/\/myratecompass.ca\/mortgages\"  title=\"mortgage rates\" data-wpil-keyword-link=\"linked\">mortgage rates<\/a> on the market. Using information the customer provides on financing desires, housing needs and credit history, a mortgage broker will do all the work to find the best mortgage on your behalf.<\/p>\n<p>&nbsp;<\/p>\n<p>Naturally, this service costs something because the mortgage broker must get paid. Although, the fee is not your obligation. Mortgage brokers get a referral fee or commission from the lender that provides you with the mortgage. Since the mortgage broker only gets paid when you accept a mortgage, they\u2019re motivated to find you what you want.<\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Pros_Cons_of_Working_with_Mortgage_Brokers\"><\/span><strong>Pros &amp; Cons of Working with Mortgage Brokers<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>&nbsp;<\/p>\n<p>Below are the advantages and disadvantages of working with mortgage brokers:<\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Pros-2\"><\/span><strong>Pros<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>&nbsp;<\/p>\n<ul>\n<li><em>Bad Credit is Okay.<\/em> Mortgage brokers can often find a lender that will work with a borrower that has bad credit.<\/li>\n<li><em>More Options.<\/em> You\u2019ll receive more options with a mortgage broker than with a bank. The chances of you getting a lower rate is higher this way.<\/li>\n<li><em>Goal is to Help You.<\/em> Mortgage brokers are in the business of finding ideal financial products for their customers. On the other hand, banks are only interested in selling you their product.<\/li>\n<li><em>Less Work for You.<\/em> Instead of you shopping around for an ideal mortgage, a mortgage broker will do the work for you. This leaves more time for your family, friends and work.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Cons-2\"><\/span><strong>Cons<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>&nbsp;<\/p>\n<ul>\n<li><em>Lack of Existing Relationship.<\/em> Most people only buy a home once. Even if you purchase a home twice, the purchases will likely be decades apart. For this reason, you likely won\u2019t have an existing relationship with a mortgage broker which can make the process much more daunting and unfamiliar.<\/li>\n<li><em>No Other Product Offerings.<\/em> Banks offer any type of financing product under the sun whereas mortgage brokers can only provide you with a mortgage product.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"How_to_Choose_Between_a_Bank_and_a_Mortgage_Broker\"><\/span><strong>How to Choose Between a Bank and a Mortgage Broker<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>&nbsp;<\/p>\n<p>Generally speaking, working with a bank is ideal if you have good credit, a connection within the bank and want the convenience of having all your finances in one place. On the other hand, working with a mortgage broker is ideal if you don\u2019t have any connections, have difficulty wrapping your head around financial concepts and don\u2019t have the time to find a good mortgage on your own.<\/p>\n<p>&nbsp;<\/p>\n<p>That being said, the choice between a bank and a mortgage lender is a personal one. The choice you make depends on your financial situation and preferences. Before making your final decision, take a moment to evaluate your budget and consider other aspects of your personal finances. The choice will become more clear once you assess your situation!<\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Finding_Your_Home\"><\/span><strong>Finding Your Home<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>&nbsp;<\/p>\n<p>Between the newly implemented stress test and the sky high prices of homes in Canada, obtaining a mortgage seems intimidating. You\u2019re right to feel daunted as a home is likely the largest purchase you\u2019ll make in your life! But the process can become less intimidating once you do your research and gain an understanding. They don\u2019t say \u201cfinding\u201d your home for nothing &#8211; it\u2019s definitely a process!<\/p>\n","protected":false},"excerpt":{"rendered":"<p><span class=\"rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time:<\/span> <span class=\"rt-time\">4<\/span> <span class=\"rt-label rt-postfix\">Min<\/span><\/span> What is the Difference Between a Bank Mortgage Representative and a Mortgage Broker? &nbsp; Is 2020 the year you purchase a home? If so, you might feel a little overwhelmed by all of the working parts of the process &#8211; one of which is choosing who to work with to obtain your mortgage. Two common&hellip; <a class=\"more-link\" href=\"https:\/\/myratecompass.ca\/blog\/personal-finance\/mortgage-brokers-vs-banks\/\">Continue reading <span class=\"screen-reader-text\">Mortgage Brokers vs Banks<\/span><\/a><\/p>\n","protected":false},"author":5,"featured_media":737,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"footnotes":""},"categories":[10],"tags":[21],"class_list":["post-736","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-personal-finance","tag-blog-post-template-1-main-template-to-use","entry"],"aioseo_notices":[],"featured_image_urls":{"full":["https:\/\/myratecompass.ca\/blog\/wp-content\/uploads\/2021\/10\/mortgage-brokers-vs-banks.jpg",924,718,false],"thumbnail":["https:\/\/myratecompass.ca\/blog\/wp-content\/uploads\/2021\/10\/mortgage-brokers-vs-banks-150x150.jpg",150,150,true],"medium":["https:\/\/myratecompass.ca\/blog\/wp-content\/uploads\/2021\/10\/mortgage-brokers-vs-banks-300x233.jpg",300,233,true],"medium_large":["https:\/\/myratecompass.ca\/blog\/wp-content\/uploads\/2021\/10\/mortgage-brokers-vs-banks-768x597.jpg",750,583,true],"large":["https:\/\/myratecompass.ca\/blog\/wp-content\/uploads\/2021\/10\/mortgage-brokers-vs-banks.jpg",750,583,false],"1536x1536":["https:\/\/myratecompass.ca\/blog\/wp-content\/uploads\/2021\/10\/mortgage-brokers-vs-banks.jpg",924,718,false],"2048x2048":["https:\/\/myratecompass.ca\/blog\/wp-content\/uploads\/2021\/10\/mortgage-brokers-vs-banks.jpg",924,718,false],"post-thumbnail":["https:\/\/myratecompass.ca\/blog\/wp-content\/uploads\/2021\/10\/mortgage-brokers-vs-banks.jpg",924,718,false],"post-image-medium":["https:\/\/myratecompass.ca\/blog\/wp-content\/uploads\/2021\/10\/mortgage-brokers-vs-banks.jpg",322,250,false]},"post_excerpt_stackable":"<p>Table of Contents What is the Difference Between a Bank Mortgage Representative and a Mortgage Broker?What is a Bank Mortgage Representative? Pros &amp; Cons of Working with BanksProsConsWhat is a Mortgage Broker? Pros &amp; Cons of Working with Mortgage BrokersProsConsHow to Choose Between a Bank and a Mortgage BrokerFinding Your Home Reading Time: 4 MinWhat is the Difference Between a Bank Mortgage Representative and a Mortgage Broker? &nbsp; Is 2020 the year you purchase a home? If so, you might feel a little overwhelmed by all of the working parts of the process &#8211; one of which is choosing who&hellip;<\/p>\n","category_list":"<a href=\"https:\/\/myratecompass.ca\/blog\/.\/personal-finance\/\" rel=\"category tag\">Personal Finance<\/a>","author_info":{"name":"Mohamed Konate","url":"https:\/\/myratecompass.ca\/blog\/author\/mohamedkonate\/"},"comments_num":"0 comments","featured_image_urls_v2":{"full":["https:\/\/myratecompass.ca\/blog\/wp-content\/uploads\/2021\/10\/mortgage-brokers-vs-banks.jpg",924,718,false],"thumbnail":["https:\/\/myratecompass.ca\/blog\/wp-content\/uploads\/2021\/10\/mortgage-brokers-vs-banks-150x150.jpg",150,150,true],"medium":["https:\/\/myratecompass.ca\/blog\/wp-content\/uploads\/2021\/10\/mortgage-brokers-vs-banks-300x233.jpg",300,233,true],"medium_large":["https:\/\/myratecompass.ca\/blog\/wp-content\/uploads\/2021\/10\/mortgage-brokers-vs-banks-768x597.jpg",750,583,true],"large":["https:\/\/myratecompass.ca\/blog\/wp-content\/uploads\/2021\/10\/mortgage-brokers-vs-banks.jpg",750,583,false],"1536x1536":["https:\/\/myratecompass.ca\/blog\/wp-content\/uploads\/2021\/10\/mortgage-brokers-vs-banks.jpg",924,718,false],"2048x2048":["https:\/\/myratecompass.ca\/blog\/wp-content\/uploads\/2021\/10\/mortgage-brokers-vs-banks.jpg",924,718,false],"post-thumbnail":["https:\/\/myratecompass.ca\/blog\/wp-content\/uploads\/2021\/10\/mortgage-brokers-vs-banks.jpg",924,718,false],"post-image-medium":["https:\/\/myratecompass.ca\/blog\/wp-content\/uploads\/2021\/10\/mortgage-brokers-vs-banks.jpg",322,250,false]},"post_excerpt_stackable_v2":"<p>Table of Contents What is the Difference Between a Bank Mortgage Representative and a Mortgage Broker?What is a Bank Mortgage Representative? Pros &amp; Cons of Working with BanksProsConsWhat is a Mortgage Broker? Pros &amp; Cons of Working with Mortgage BrokersProsConsHow to Choose Between a Bank and a Mortgage BrokerFinding Your Home Reading Time: 4 MinWhat is the Difference Between a Bank Mortgage Representative and a Mortgage Broker? &nbsp; Is 2020 the year you purchase a home? If so, you might feel a little overwhelmed by all of the working parts of the process &#8211; one of which is choosing who&hellip;<\/p>\n","category_list_v2":"<a href=\"https:\/\/myratecompass.ca\/blog\/.\/personal-finance\/\" rel=\"category tag\">Personal Finance<\/a>","author_info_v2":{"name":"Mohamed Konate","url":"https:\/\/myratecompass.ca\/blog\/author\/mohamedkonate\/"},"comments_num_v2":"0 comments","jetpack_featured_media_url":"https:\/\/myratecompass.ca\/blog\/wp-content\/uploads\/2021\/10\/mortgage-brokers-vs-banks.jpg","_links":{"self":[{"href":"https:\/\/myratecompass.ca\/blog\/wp-json\/wp\/v2\/posts\/736","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/myratecompass.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/myratecompass.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/myratecompass.ca\/blog\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/myratecompass.ca\/blog\/wp-json\/wp\/v2\/comments?post=736"}],"version-history":[{"count":3,"href":"https:\/\/myratecompass.ca\/blog\/wp-json\/wp\/v2\/posts\/736\/revisions"}],"predecessor-version":[{"id":6108,"href":"https:\/\/myratecompass.ca\/blog\/wp-json\/wp\/v2\/posts\/736\/revisions\/6108"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/myratecompass.ca\/blog\/wp-json\/wp\/v2\/media\/737"}],"wp:attachment":[{"href":"https:\/\/myratecompass.ca\/blog\/wp-json\/wp\/v2\/media?parent=736"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/myratecompass.ca\/blog\/wp-json\/wp\/v2\/categories?post=736"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/myratecompass.ca\/blog\/wp-json\/wp\/v2\/tags?post=736"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}