What’s The Difference Between a Broker VS a Banker?
It can be quite intimidating to buy a home, especially when you are a first time home buyer. Although the overall experience is rewarding because you have bought yourself a place that you can call your own home, but when the process of home buying starts, there are many critical aspects that you need to consider. One of the first things to do when planning to buy a home is to start evaluating your mortgage options. This is where you may be faced with the question, ‘what is the difference between getting a mortgage from a mortgage broker versus getting it from a bank?’
Technically, mortgage as a term remains the same in its meaning and application, whether you buy it from a bank or through a mortgage broker. But choosing the right mortgage provider can make a lot of difference in the long run. Typically, you may be tempted to buy a mortgage if it fits you in your current situation, but it is important to consider whether or not your mortgage is sustainable some years later too. Here are some key differences when it comes to getting a mortgage from a bank or through a mortgage specialist.
Why wouldn’t you get a better deal from your bank on a mortgage?
Depending on your personal financial situation, and even which bank you deal with, there are only so many things they can offer you. To simplify the process, they look into their box of options, pick out the file that says mortgages and from there they might have option 1 or option 2 for you. Then they’ll run your numbers which can seem like a daunting process where they ask about your current employer, how long you’ve been employed, how much money you make and from there they enter it into a system and say something along the lines of “well Mr. and Mrs. Anderson, as a long-time customer of ours we value your business and can offer you this mortgage rate.”
Evaluating your situation
When you visit your bank, they will simply run some numbers on their standard mortgage plans, get information on your employment and give you a mortgage rate based on those stats.
In principle, a mortgage broker from the best mortgage provider in Vancouver will also do the same. But here is a critical difference – your mortgage broker will ask a few more in-depth questions about your financial situation to check if there are any underlying reasons why you may or may not qualify for more than what a bank has offered you. Additionally, they will consider your overall income potential, if in the future you plan to rent or lease your property.
A bank will usually only consider your income, occupation and your length of employment when deciding on a mortgage rate and amount. If you are a business owner, getting a mortgage from a bank may seem like a war to you. However, a mortgage broker will offer you a specific solution depending on your business. Additionally, a bank will simply refuse your mortgage if you do not qualify as per their standard parameters. A mortgage specialist will work on your case and give you the best possible option.
Mortgage brokers as representatives
Another major difference between banks and mortgage brokers is that most of the latter work as your representative with banks and lenders. A mortgage broker can show you multiple borrowing options from banks and lenders, which a bank will not.
There are many more critical reasons why mortgage broker is your best bet when you want to secure a comfortable and hassle-free mortgage for your home. Talk to our representatives from Arise Mortgage if you are looking to get a mortgage for your home. They will perform a detailed analysis of your situation and suggest the best possible options for you.