Mortgage Broker vs Direct Bank / Lender in Winnipeg

February 19, 2020 | Posted by:

Mortgage Broker vs Direct Bank or Lender in Winnipeg

There are a lot of decisions to make when it comes to buying your first home, but perhaps the most important one is in regards to whether you should go directly to a lender or secure the services of a mortgage broker first. Hindsight from all who came before you can say with certainty that the latter is the best direction to take. Here’s why.

Four Reasons Why First Time Buyers in Winnipeg Should Use a Mortgage Broker Instead of Going Directly to a Bank

1. A Broker Takes the Homework/Guesswork Out of Finding a Lender

There are a lot of lending institutions out there, all vying for the attention of new buyers. They offer varying terms, mortgage rates, incentives, and free toasters to the first 100 qualifying applicants. This is likely the biggest financial and life decision you will ever make, so you will need to do a ton of groundwork before deciding which lenders to approach. Not only do you have to consider what they have to offer, you have to consider what sort of investment you look like to them. You essentially get one shot at pleading your case to a given lender. They are the judge, jury, and unfortunately for some - the executioner of dreams. The process is extremely time-intensive which is why so many prospective buyers procrastinate buying a home, year after year after year. 

By going to a mortgage broker first, you gain a partner that will do all of the labor-intensive work for you. After getting to know you in addition to your budget, finances, goals, wants, and needs they will be able to match your profile to the most suitable (to you) lenders. 

2. A Reputable Broker Provides Access to Favorable (and Unadvertised) Mortgage Rates

When you walk into a bank on your own to get a mortgage, they will honor (assuming you qualify) the offer you found online or in your local newspaper (etc.) and that’s about it. These are the rates they have advertised - the ones that puts a bit more dough in their pockets at the end of the mortgage term. But if you prefer to get your toilet paper at Costco over Save-On-Foods then you don’t favor paying a premium when you don’t have to.

A reputable broker will get you access to lenders’ unadvertised rates. They receive discounts on rates because they have a long tenure of sending mortgage business to the banks. The broker the passes these preferred rates on to you. But of course - you’ve actually got to reach out to one first.

3. A Broker Offers Many More Home-Buying Services Than a Bank

A bank is there to lend you money for your home purchase and that’s it. They might offer you a cup of coffee while waiting for your appointment, but that’s pretty much where the list of mortgage services stops. A broker on the other hand, is with you through every step of the home buying process. If you connect to one today, you gain a righthand that will help with mortgage calculations, pre-approval, and can assist with a wide variety of variables en route to seeking a loan, whether you’re self-employed or need to improve your credit first. Plus, once you’ve successfully used them to get the best mortgage possible, you will have also gained access to a variety of other services you may need in the future, such as renewals, refinancing, or even home equity loans to renovate your kitchen. A lender’s offering pales in comparison to that of a full service mortgage broker. 

4. A Broker Treats You Like a Person, Lenders Don’t

Don’t let that sappy and well-produced TV commercial from your local bank fool you. They don’t care if your family immigrated here for a better life. They don’t care where your kids hope to go to university, or if you want to retire early to travel the world. To them, you’re nothing more than an investment. Will lending you x-amount lead to a significantly greater return in 5, 10, 15, or 20 years? That’s all they care about. And you know what? That’s fine. You just need to consider them as a necessary link in the chain that leads you to your dream home. But that doesn’t mean you have to give up your power or persona when approaching them. With a broker, you gain a partner who will represent you with pride, someone in your corner that will fight tooth and nail to get you the funds you demand to secure the home you deserve. But don’t just take this article on its word - find out for yourself by contacting Ron Chan today for a friendly noncommittal conversation. It’s your world - Ron’s just here to make the best of it for YOU.

Call Ron Chan today at 204.290.9950.

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