Do you know the difference between a Mortgage Broker and a Bank Mortgage Specialist?

There are actually a number of differences which you may not be aware of.

Here’s some information to help you understand.

A Mortgage Broker works for your client; where as Bank Specialists are employed by the financial institution.

The benefit of using a Mortgage Broker is the fact that they have the ability to offer mortgage products from a number of financial institutions.  Since a Bank Specialists works for the bank, that means that they can usually only offer your client their institution’s products.

Brokers are typically paid the same amount no matter what rate is offered to the client.  Bank specialists’ rate of pay is generally reduced in direct relation to the amount they discount your rate from the bank’s posted rate.

Depending on your Province, Mortgage Brokers must be licensed and are subject to a strict set of requirements.  Accredited Mortgage Professionals (AMP) must take continuing education courses in order to maintain their accreditation.  Bank specialists are not licensed and require no formal training.

Because Mortgage Brokers don’t work for a specific lender, you’re assured that you will be given impartial advice.  A bank specialist has a limited number of their own institution’s products and while it may not be the best mortgage product out there, they will do their best to sell you their institution’s mortgage product because if they don’t you’re going somewhere else.

Mortgage brokers use their knowledge and experience to negotiate the best possible rate and product for your client from a number of lenders.  When you see a bank specialist, that mortgage negotiating is typically left up to your client.

For conventional financing, the services of a mortgage broker are generally provide at no cost to your client.  If there is a cost, your client will be advised of those costs up front.

So in conclusion, if you have the ability to use the services of a professional Mortgage Broker and have that Mortgage Broker does all your mortgage leg work at no cost, why would you not take advantage of the offer?

FYI, today, 75% of people in the United States use mortgage brokers.  Because the Mortgage Brokerage Industry is relatively new in Canada, the numbers are lower; however, those numbers are increasing every year.

If you have any questions about this article or about arranging some mortgage financing please do not hesitate to contact me.

Heather Bovard, Real Mortgage Associates
Mortgage Broker, License # M08000820
Office: 705.795.5557
www.heatherbovard.comM

Tags: mortgage loans

Posted under Buying A Home

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