A survey by the Mortgage Professional Association of Canada revealed that almost 39% of first-time home buyers were reluctant to consult a mortgage broker. Brokers often make a home buying process hassle-free but lack of or poor knowledge about their role deprives the buyers of the wonderful services they offer.

Working with a direct lender may feel more convenient and traditional but an independent third party like a mortgage broker can bring so many things to the table. Brokers provide you the most sound and neutral financial advice, they have access to a broad range of products, and can show you the way to save thousands of dollars.

Still not convinced? Reading these 10 reasons for hiring a mortgage broker may change your mind.

Quick Read:

  1. Spare the Legwork
  2. Availability of Service
  3. Better Accessibility
  4. Pay Less
  5. Calculating Your Eligibility
  6. A Great Ally
  7. Invaluable Experience
  8. Free of Charge
  9. Quick Processing
  10. Extended Service

1. Spare the Legwork

What’s the first thing you should do when looking for a lender? Research! You have to shop for the institution to find the best rates and plenty of other facilities. Brokers have many contacts up their sleeve, some of whom you may not have even heard of. They can land you into good deals and steer away from the bad ones with taxing payment terms buried in the contracts.

Many lenders have special working relationships with the mortgage brokers and rely on them for bringing eligible clients.

2. Availability of Service

You lead a busy life and you have a family to take care of during your spare time. No problem! Broker agents will come to you at your discretion. They are like a mobile service that is available seven days a week, unlike a bank mortgage specialist. You can sit with a broker for as many hours as you like and they will walk you through all the formalities without requiring you to lift a finger. Many agents respond to emails and phone calls even after the regular office hours.

When you are struggling with the stress of buying a home amid a busy schedule, the convenience of having the service of a professional who can take care of the business on your behalf is a huge relief.

3. Better Accessibility

It’ no surprise that plenty of lenders don’t make their mortgages and rates available for public access except for the mortgage brokers. They work with a huge network of lending institutions, allowing them to negotiate the best possible terms and mortgage interest rates for the borrowers.

You can directly deal with the bank but they impose a higher rate and strict repayment penalties for breaking any rule. Working with a mortgage broker is safer given that they will try to protect your interest. Also, they have a liaison with not only banks but also financial specialists and non-bank lenders.

4. Pay Less

Many lenders offer special rates to the brokers because of the volume of business they generate. No individual customer will get access to those special deals. Some of these rates are exclusive and don’t get exposed at the consumer level. These interest rates are lower than the ones offered by credit union and banks.

Taking a mortgage involves several fees for the origination, application, appraisal, and other processes. Some brokers can waive all or some of these fees, saving you a great amount of money.

5. Calculating Your Eligibility

Most homebuyers are unaware of the amount they can borrow from the mortgage lenders. The eligibility and loan amount depend on various factors. Considering all these variables in mind while keeping tabs on the rates of various banks is exhausting.

Brokers have access to a huge network of lenders and exclusive rates and equipped with the knowledge of all rules and regulations. They are your best bet to find a lender and low rates based on your qualifications and specific needs.

6. A Great Ally

Purchasing a home is a huge task that requires plenty of paperwork. There are so many things to learn and do for the approval of a loan. A good mortgage broker can help you connect all the dots without burying you under documents and red tape.

You can consult the bank’s own mortgage specialist. They are a good option but remember that their job is to sell you a product that may not be compatible with your unique requirements.

Broker agents are neutral because they don’t work for any bank or a specific lender. Selling you a mortgage is not their primary concern but finding you the best one is. So, they are likely to give you unbiased advice and suggestions.

7. Invaluable Experience

First-time homebuyers are likely to make plenty of mistakes due to their inexperience. Brokers can help them with their vast experience of handling clients and various financial conditions. Expect to get the best estimations and options from them in every possible scenario involving your lifestyle and job change during the duration of the mortgage term. They will make you financially ready for situations that may have not even crossed your mind.

8. Free of Charge

There is nothing to worry about the fees of the mortgage brokers. They take commissions from the lenders when the deal is successful. Well, the fee might be still going from your pocket since the lender is likely to add the cost to the loan. But, you will still be on the winning side if the broker can negotiate you a lower interest rate and favorable loan terms.

The best practice is to ask about their fee structure before conducting any business. Proceed only if you are comfortable with their compensation model. Remember that the business of the brokers thrives on referrals and good reputation. So, they will always work in your best interest.

9. Quick Processing

Hiring a mortgage broker will help with having a quick loan approval. A noob homebuyer basically beats around the bush because of lack of knowledge. A broker knows what you exactly need to do to get the approval. Also, a lender can give priority to the borrowers referred to by creditworthy brokers.

10. Extended Service

You will be glad to know that a broker will be there to supervise the process until the closing date. Many of them are open to offering assistance and advice even after the completion of paperwork and transaction.

Make sure to work with a mortgage broker who has a good reputation and ratings from previous clients. It’s better to take recommendations from friends or colleagues. As the service of these agents are available across the country, there is nothing to worry no matter where you have intended to purchase the house.