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Mortgage Broker vs Bank?

Updated: Aug 20, 2021

Many people ask what the difference is between working with a mortgage broker or the bank? Which is the correct choice and how can you make the best decision for yourself?

Mortgage brokers are licensed professionals acting as an intermediary between you and your lender with the intention of securing mortgage financing on your behalf. They are required to update their qualifications regularly, depending on varying provincial regulations, and have significant standards and regulations that are implemented by both the BCFSA and FICOM. They work independently and are generally paid directly by the lender for the financing they arrange on your behalf. Mortgage brokers specialize in financing complicated deals because of their extensive knowledge in the industry, whereas banks may not be able to offer such a tailored and specialized approach to your mortgage needs.

Mortgage brokers will assist you at all stages of the home ownership process; from pre-approval to funding and beyond. This allows the client to develop and maintain a long term, trusted relationship with their mortgage broker and ensure they are acting in their best interest. They can also save you both time and energy by doing the shopping for you. Purchasing a home is one of the biggest purchases and synonymously one of the most stressful transactions one can make, so having someone in your corner and fighting on your team is a major advantage in the process.

The banks can only offer their own mortgage products, while mortgage brokers can present multiple options tailored to your specific needs. This is a particularly unique feature as your mortgage broker can choose from several rate and product options, and in turn, find the best long term plan for your financial goals. With a mortgage broker's extensive knowledge of the entire mortgage market, they can investigate and advise which lender is an appropriate fit for your individual circumstance - inclusive of alternative lending when the major banks say no to specific qualifications such as low credit scores and debt servicing. Mortgage brokers work with both the big banks and alternative lenders and act as a negotiation expert to ensure you get the best options and rates available to you.

In conclusion, it comes down to the client's personal preference. With so many different options in today's world, it can be a daunting decision to add to the real estate transaction and home purchasing process. Both the banks and mortgage brokers can facilitate the financing transaction on your behalf, however, only one of the two is uniquely qualified in the process, working with numerous financial institutions and lending services to provide you with the best solution. I don't know about you, but when presented with an opportunity to work with a generalist or a specialist, it's an easy decision to make.


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