Breaking Up is Hard to Do: What Are The Barriers to Choosing a Mortgage Broker?
Despite the abilities of mortgage brokers to find rates for home buyers often lower than those posted by the big banks, some buyers are reluctant to leave the comfort of their lending institutions in favour of personal ‘agents’ working in their best interests.
This is supported by evidence that in Canada, first-time buyers
are the most likely to use mortgage brokers, while repeat buyers tend to become loyal to their initial lending institutions and are a little more reluctant to switch to independent brokers.
It’s hard to break up with your long-term financial institution, but switching your mortgage provider doesn’t mean you have to leave your bank. Maybe it’s the fear that your once friendly local bank manager will suddenly treat you like stale cheese, but banks understand - and you might be treated even better when it’s evident that you’re calling the shots.
In fact, it’s a badly kept secret that some of the lowest rates
sourced by mortgage brokers are from top financial institutions in the country.
Fear of Hidden Costs
It might seem too good to be true, but consumers generally pay nothing to employ the services of mortgage brokers: financial institutions work with our industry because they know we’re likely to bring them qualified buyers, and they compete to pay us commissions.
When you use the services of a mortgage professional at a lending institution, you are exposed only to the rates and products of that one institution. A mortgage broker works for the buyer as opposed to the lender and has access to 40+ lenders across Canada. Why not let someone negotiate the best deal on your behalf?
Expertise and Reliability
Not all mortgage broker companies are created equal. It’s important to find a broker that you trust and is backed by a solid brand and reputation.
Having a qualified CENTUM mortgage broker working for you as a home buyer doesn’t usually cost you anything – but the advantages can save you thousands of dollars over the life of your mortgage.
CENTUM recently completed its latest national training, awards and conference program across Canada. We congratulate our brokers who earned awards in 2010. Learn more about CENTUM and connect with us via our national Facebook page.
Posted by CENTUM Canada
on April 15, 2011