Bank vs. mortgage broker

[Vanish3d]

what is the difference (if any) between banks and mortgage brokers?

I just bought a condo and trying to decided where to get my mortgage from. I have things initially set up with RBC (pre-approval) but found a couple of brokers that are offer lower rates

RBC: Variable closed @ Prime (2.25)
broker: Variable closed @ Prime - ~0.2 (2.05)

is there major advantages / disadvantages between banks and brokers?

[bubbley]

mortgage brokers = deal with various lenders/banks
Banks = in-house limited to their own products

[syeve]

Defn go with a broker, they make the process so easy. The good ones deal with all or most of the banks plus alternate lending shops. I will PM you the name of mine, she is great.

[civicHB]

The main difference is the bank can only offer you THEIR best rate, while with a mortgage broker they are shopping for THE best rate available from multiple lenders.
Depending on your credit history/needs, a mortgage broker can determine which is the best lending instution that will offer you the best rates.
Any other questions feel free to PM me.

Bemnet
Alberta Mortgage Center

[Vanish3d]

so there is no disdvantage of going with broker? since its cheaper

[civicHB]

Originally posted by Vanish3d
so there is no disdvantage of going with broker? since its cheaper

As long as its a reputable broker there is no disadvantage

[A790]

As I said in the other thread, I recommend the Purcell Mortgage Team exclusively. Dealt with them with friends/family on a few different occassions and never had an issue of any kind.

So yea, I'm +1 for mortgage broker :P

[Masked Bandit]

If you were buying a TV, would you just look at the Sony Store or would you go into Future Shop to look at Sony plus all the other brands?

[Vanish3d]

thanks!

hopefully my realtor didnt send the paperwork to RBC already

[whiskas]

Originally posted by A790
As I said in the other thread, I recommend the Purcell Mortgage Team exclusively. Dealt with them with friends/family on a few different occassions and never had an issue of any kind.

So yea, I'm +1 for mortgage broker :P

I've used them as well and they do a great job.

Another plus, is that you only get one credit check done by a broker. If you were to shop around yourself, each bank would have to do a new credit check each time, which does lower your credit score.

[TomcoPDR]

Originally posted by Masked Bandit
If you were buying a TV, would you just look at the Sony Store or would you go into Future Shop to look at Sony plus all the other brands?

UNLESS you specifically wanted an XBR or a particular Sony model

[rizfarmer]

disadvantages would be stuff like not being able to see your mortgage online with the rest of your banking. ie you are a TD customer, you can view the payment details, rate, am etc for you mortgage while viewing the activity in your savings account at the same website.

Might be a consideration for some folks. Also, you don't get a direct relationship with the lender, and you are not building any raport with a traditional bank.

[Mys73ri0]

do brokers have any way of letting you use your mortgage/downpayment as a heloc? because I believe most traditional banks have a program set up to allow it...

[rizfarmer]

a broker can likely arrange any credit facility that a bank could, they utilize the banks afterall

[Masked Bandit]

Originally posted by TomcoPDR


UNLESS you specifically wanted an XBR or a particular Sony model

Well ya I suppose...but you see what I'm getting at.

And chances are that same Sony model would be available through a multi-line retailer. Just like mortgage brokers can access bank-funded mortgages.

[syeve]

Originally posted by rizfarmer
disadvantages would be stuff like not being able to see your mortgage online with the rest of your banking. ie you are a TD customer, you can view the payment details, rate, am etc for you mortgage while viewing the activity in your savings account at the same website.

Might be a consideration for some folks. Also, you don't get a direct relationship with the lender, and you are not building any raport with a traditional bank.

The broker only brokers the deal, you still have a formal arrangement with the bank, you will be able to access you account information and develop a relationship with the lender just as if you would had you not used a broker.

[desmond]

How do brokers earn? Do they get commssion from banks and lenders they deal with? Or do they ask a fee from the borrower?

[Vince1]

The mortgage brokers I've had as clients were real greasy, they talk out their asses about how they can fix you up being self employed and all, so I got suckered in a few times and cut some good deals when they needed my services, only to get hosed in the end and told that despite good credit and deece down payment I was too high risk.

It'll be a while yet before a bank gives me the time of day, but the brokers I've met were much akin to car salespeople, so F that for the biggest purchase of my life. I'm sure there's good ones out there, sadly it's been ruined for them by these chicken hawks I've run into.

[A790]

Originally posted by desmond
How do brokers earn? Do they get commssion from banks and lenders they deal with? Or do they ask a fee from the borrower?

They get paid a commission by their lender. In most cases you'll never have to pay them. There are some exceptions, but it's pretty few and far between.

Originally posted by Vince1
The mortgage brokers I've had as clients were real greasy, they talk out their asses about how they can fix you up being self employed and all, so I got suckered in a few times and cut some good deals when they needed my services, only to get hosed in the end and told that despite good credit and deece down payment I was too high risk.

It'll be a while yet before a bank gives me the time of day, but the brokers I've met were much akin to car salespeople, so F that for the biggest purchase of my life. I'm sure there's good ones out there, sadly it's been ruined for them by these chicken hawks I've run into.

Sounds like you've been dealing with the shady guys. If the only car dealer I ever dealt with was Chinook Auto Sales I'd feel the same way. Thankfully, there are good examples of both mortgage brokers and auto dealers.

[Cos]

My broker was awesome, got me almost 1 full point lower than my own bank would.

Not greasy at all, he is one of the highest grossing brokers in Calgary