Bank vs Broker
There’s a fair amount of confusion when it comes what a bank is vs. who the heck a broker is. Does a mortgage broker work for the bank? No? How do banks provide mortgages then? Why would I choose a mortgage broker OVER a bank if they do the same thing? (news flash, they don’t!)
Head spinning yet?
Let’s slow down and take a better look at how a bank differs from a broker.
The Bread And The Butter Of What’s Different
In the end of the day, banks work for themselves.
As licensed mortgage brokers, we are licensed to work solely for YOU!.
Because we're licensed, we have a fiduciary duty to put your mortgage needs above all else (even our own!)
We don’t work for the banks (but we work WITH them to negotiate amazing mortgage deals on your behalf).
Because we work for you and specialize in mortgages, we’re able to put more care and attention into meeting your specific needs. This is why we're commonly seeing that licensed mortgage brokers have a significantly better approval rating than the banks.
Psst: Go see for yourself!
What Are Banks Lacking?
Overall, banks are spread thin.
Banks have many small personal accounts and countless important, large accounts to oversee; there are often ten’s of thousands of people who are signed up with them for various reasons at once!
Here are a few considerations about securing a mortgage through a bank
- Banks have many different accounts to maintain and it can make the relationship for you, the borrower, feel a bit… distant.
- Getting approved through a bank often takes longer due to their strict policies, paperwork and ‘red tape’. This can especially be frustrating to work with regardless of whether you’re a first-time home buyer or you already own your home because it can set you back on finalizing a time-sensitive mortgage deal.
- Banks are less likely to analyze your personal situation and make a case for you. For example, if you’re self-employed or have a poor credit score it may automatically be grounds for them to deny you a loan.
- Getting approved through a bank often takes longer due to their strict policies, paperwork and ‘red tape’. This can especially be frustrating to work with regardless of whether you’re a first-time home buyer or you already own your home because it can set you back on finalizing a time-sensitive mortgage deal.
What Advantages Do Licensed Mortgage Brokers Have Over Banks?
- Offer a more personalized experience.
- We have a direct focus on your file and can get to know you more personally while understanding your goals more extensively. We’re easy to get a hold of – no pressing ‘1’, then ‘3’, then ‘2’ simply to speak with us!
- Offer Unbiased opinions and advice strictly influenced by you.
- Because we don’t work for anyone else other than you, or goal is to best serve YOU. This means that we don’t offer advice with ulterior motives (such as commissions), and in the rare event that we are receiving a bonus, (by both ethics and law) we will disclose it to you with full transparency before the contract is signed.
- We’re mobile.
- Unlike a bank, we can move around. If you have mobility issues or lack transportation but would like to meet in person, we’d be happy to come to you! Of course, meeting over the phone works just as well.
- We’re experts in mortgages.
- As licensed mortgage brokers in British Columbia, we’ve been required to successfully complete a 1 year course through UBC Sauder School of Business AND pass an exam specifically on mortgages to start our licensing process.
This means that we specialize in our field so we can embody a complete understanding of the industry and best know how to save you money.- We shop around for the best deals.
- Banks are committed to the deals they offer, so you may not receive the best fixed or variable rate through them. We have the flexibility to check in with as many lenders as we choose to negotiate eye-catching mortgage deals on your behalf.
- We have creative mortgage solutions
- Banks are limited to their strict policies and protocols. As licensed mortgage brokers, we have access to countless lenders, programs, and mortgage solutions. The likelihood of finding an ethical mortgage solution which perfectly suites your lifestyle and goals can be found through us.
If you've been denied a mortgage by traditional A-lenders we may still be able to find you desirable mortgage solutions!
Depending on your borrowing situation (bad debt? bruised credit? self employed?), there may be other alternative borrowing avenues available such an alternative B-lending or private lending.
We'd be happy to take a look at your unique borrowing situation to determine if alternative lending solutions may be in your cards!
Give Us A Call At No Risk To You
Some borrowers are happy with the rates they received from the banks and that’s great!
As with any industry, there are success stories everywhere.
Many of our clients who have switched over to us from banks didn’t realize the deals and rates they were missing out on by not originally working with us; we’re proud to say we have successfully negotiated competitive mortgage deals for our clients thanks to our freedom as licensed mortgage brokers to 'shop around'.
We thoroughly enjoy working hard to ensure our clients mortgage needs aren't only met, but exceeded!
If you’re interested in having a chat to see whether we can get you a better deal than what the banks have offered, please reach out to myself, Kyle Benzies (licensed mortgage broker).
I’d love to answer any questions you have (at no cost to you) and secure a mortgage deal which is super friendly to your piggybank.
For a no-risk, confidential chat about your mortgage options, let's connect with a phone call!
***other conditions may apply to anything listed above. The information provided on this page should NOT be implicitly relied upon, and may not be 100% up to date. It's best to contact us for the most current conditions/program offerings for first time buyers***