Can a mortgage broker save you money?

By Irma Sebastiano October 09 2018 Comments

With interest rates on the rise and the cost of living going up, we as Canadians are taking deals wherever we can find them. Perhaps you have taken to coupon clipping or shopping around for a better phone plan. If you are a homeowner (or are hoping to soon be one), you may even be wondering if there is a way that you can save money on your mortgage payments. 

One question that I get asked all the time is whether mortgage brokers can actually get home owners better deals than they would be able to get with their banks. My answer – in most cases, yes.

There are several ways that working with a mortgage broker can save you money. For starters, when you call just one mortgage broker, it is like calling 50 or more different lenders. Brokers work with a variety of lenders including banks and credit unions, but they also work with alternative lenders you may not have even heard of.

This saves you quite a bit of legwork. And some lenders will only work with mortgage brokers, so even if you wanted to, you wouldn’t be able to access these lenders on your own. These lenders frequently offer big discounts and incentives through mortgage brokers in exchange for referrals. That means, the only way to get these deals is through a mortgage broker.

And mortgage brokers don’t just save you money on interest rates either. When applying for a mortgage, there are usually a number of other fees associated with that. These include appraisal fees, origination fees, and application fees to name a few. As a result of the relationships that mortgage brokers build with lenders, they can often have a portion of these fees waived. The savings this means for you can be in the thousands of dollars.

And here is another way that a mortgage broker can save you money.

They can advise you to avoid certain lenders. Unfortunately, there are lenders out there that are less than ethical and often that have hidden payment terms embedded into their mortgage contracts. Being in the industry, these unsavoury lenders are often known to mortgage agents and they will do their best to keep their clients away from them.

This not only saves you money on your mortgage payments but it can also potentially save you a bundle in legal costs that you might have had to spend breaking a contract with a lender of ill repute.

All of that being said, you may still want to do a bit of your own legwork in comparing mortgage brokers. While the deals they can get you may be similar, you still want to work with someone that has a good reputation and who is willing to listen to your concerns and answer your questions.

If you would like to see if I am the right mortgage broker for you, call me today. I would be happy to chat!
 

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4725 Dorchester Road, Unit B4, ON. L2E 0A8 irmasebastiano@rmabroker.ca 1 - (905) 321-9396
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