Lenders: using a mortgage broker

The decision to use a mortgage broker or to borrow from your own bank when buying a home depends on your personal preferences and financial situation. Considering the sky high prices of housing in the Metro Vancouver and Fraser Valley housing markets, choosing the right lender can make a big impact on your mortgage costs. The mortgages being taken out in Metro Vancouver cities are often substantial and finding savings on your mortgage can really make a big difference over time, with respect to interest costs. 

Here are some things to consider:

Advantages of using a mortgage broker:

• Brokers can provide access to multiple lenders, potentially increasing the number of mortgage options available to you and allowing you to compare rates and terms.
• Brokers may have relationships with certain lenders, which could result in access to exclusive deals or better terms.
• Brokers can often provide guidance and advice throughout the mortgage process, helping you understand the various options and choose the best one for your needs.
• Brokers typically work on commission, so they are motivated to find you the best deal possible.

Advantages of borrowing from your own bank:

• If you have an established relationship with your bank, they may offer you preferential rates or terms.
• If you have a good credit history and a strong financial situation, your bank may be more likely to approve your mortgage application.
• You may feel more comfortable working with a bank that you already know and trust.
• You may be able to bundle your mortgage with other banking products, such as a checking account or credit card, for added convenience.

Final Thought

Ultimately, the decision to use a mortgage broker or to borrow from your own bank is up to you. It can be helpful to shop around and compare rates and terms from multiple lenders, including your own bank and brokers, to ensure that you get the best deal possible. Again, a mortgage is generally the largest financial obligation that homebuyers take on in Metro Vancouver and the Fraser Valley. That's why it can pay to spend time exploring your options and to find what fits your affordability level.