When you think about applying for a mortgage, the first scenario that probably comes to mind is shuffling through a series of banks looking for the best approval amount and interest rates. This would be a process where you would speak to a mortgage lender, who would take you through all of the different mortgage packages that particular bank had to offer to get you the money you need to make an offer (a very exciting prospect indeed!).
But, going through a bank is not the only option when it comes to getting a mortgage. In today's competitive financial world, companies, speculators and even private individuals are offering financial opportunities through money lending for home ownership. Because the market is so competitive, these mortgage brokers are easier to find for new home buyers.
A mortgage broker is a freelance business person working independently from a larger operation, like a bank. Where a bank employee can only offer rates and deals that coincide with that business's policies, an independent broker can more easily (and possibly willingly) cater your mortgage rate and plan to your specific financial situation. It is that broker's job to find the best possible mortgage package for each client's terms. You can read the actual definition of a mortgage broker, according to Investopedia here.
While this may seem ideal, there is still several aspects that one must consider when deciding between a mortgage with a bank and one with a mortgage broker. One example of this is the issue of credit. Banks generally have very strict guidelines when it comes to a person's credit rating and whether or not they are even approved for a mortgage within that institution. A person with this situation might be better to seek the help of a mortgage broken, who is likely to be able to find them a lender who is willing to work with a bad credit rating.
A mortgage broker, though, does not lend the same amount of security that a trusted bank can offer. While there are guidelines put forth by the province on how they operate, it is still very important that individuals research any broker that they are considering working with. After all, it most likely took quite some time to acquire the money for a down payment on your house. You want to make sure that money is safe.
There are elements to each mortgage process that will be appealing to home buyers and the only way to ensure that you are getting the right mortgage package with the right organization for you is to shop around and do your research. Try starting with visit a reputable mortgage broker site such as Morcan Direct (see ad on the side of this page). Your next step would be to set up an appointment so you can discuss terms.