Mortgage Broker vs. Banker

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Today I want to talk to you a little bit about who you should go to for your mortgage. Your Banker or a Mortgage Broker?

Again, as a 23 year veteran in the real estate business (I like saying that because it’s like my badge of honour and I like to remind people, your not talking to an amateur here) banks and trust companies pretty much had the mortgage business wrapped up back in the day. Somebody needed money, they went to the bank, end of story. But the rate you paid was what was posted on the window outside. No deals, period! Now, mortgage brokers were around back then to but they were considered a last resort source for a mortgage if every bank in town was saying no and they often hooked you up with either some small obscure lender located somewhere in downtown Toronto or some private lender that was willing to take the chance giving you a mortgage in exchange for a pretty high rate.

But all that has changed. Mortgage brokers have access to many lenders and in many cases the same lenders you deal with for your day to day banking. Their role today is almost more like an insurance agent who shops the market for looking for not only the best rate for their customers but the best terms to because remember it’s not always about rate. And what’s great about this type of environment is the banks know they’re now competing with each other which causes them to offer rates discounts which is obviously beneficial to us the end customer.

When you go to a mortgage broker, he or she is going to do their best to get you great rates no matter what. If you just go to your bank, you’ll notice they only offer rate discounts when they know they’re in competition which puts you in a position to either just pay it or do the shopping around yourself.

Furthermore, mortgage brokers often perform these duties at no extra cost to you because they’re are paid a finders fee be the lender they place your mortgage with. So why wouldn’t you let somebody else do the running around for you.

The mortgage environment has gone through quite a few chances as of late and I can’t imagine somebody making this type of decision without the advice of a professional. A mortgage broker works for you, not the bank.

From time to time we get customers that have been to their bank for a pre-approval and they tell us the rate they’ve been quoted and quite often we can beat it. But what kills me is sometimes they go back to their bank and tell them the rate we quoted and the banks sometimes will match it so the customer stays with them. You have to ask yourself, “Why would I do business with an institution that just tried to jack me on rate?” Remember if you don’t do business with a mortgage broker, the competitive mortgage environment will disappear and we’re back to paying the rates on the window.

So when your ready to get pre-approved for a mortgage call your mortgage broker and if you don’t know one, I would invite you to call our company Mortgage Alliance Maximum Results Financial Services (Reg # 10224)@ 519 624-9222 of apply online at

Make it a great day!

Walter Monteiro.

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