This has probably been the biggest debate since the beginning of time. For some people better rates and quicker processes make it an easy choice to lean towards a mortgage broker in Mississauga. But some prefer the square world of a bank. Here, we have listed out a few areas with a comparison of who is better, a bank or a mortgage broker in Mississauga.
First, let’s understand who a mortgage broker in Mississauga actually is; A mortgage broker is simply an intermediary between the lender and the borrower. They work in a way which provides benefits to all the parties involved in the transaction. A mortgage Agent is a licensed professional who can negotiate the rates in the market on your behalf.
- Broker: The mortgage broker in Mississauga can work on your behalf to get the best rates. He negotiates the rates for you depending on your financial status and needs. He is invested in getting you the right mortgage rates with the right plans in Mississauga. The mortgage broker in Mississauga can negotiate the rates with multiple lenders in one go.
- Bank: Big banks usually stick to the rate they provide on their site and have very few plans for comparison. They provide you with loan officers who aren’t interested in negotiating the rates and just want to make a commission.
- Broker: The mortgage broker in Mississauga provides access to a variety of lenders, not just from Mississauga. The mortgage broker will have connections with lenders from all over Canada and hence he has access to a wide variety of options beyond Mississauga. This can enable them to provide options which are way lower than the bank and which also match your needs and requirements.
- Bank: A bank on the other hand, will have access only to the rates in their current geographical location. They have fixed plans and these cannot be customized according to you. The rates will be those provided by the bank and can rarely be negotiated. However “loyal” and “valued” a customer you are, a bank will offer you rates which benefit them.
- Broker: When you apply for a mortgage with your broker, you get one mark on your credit history. Using that, your broker will send your application to a variety of lenders in Mississauga and beyond. He will then get the best rates and present them to you. This saves you time and money and can really help make the process of applying for a mortgage very simple. This is why a mortgage broker is better for your credit.
- Bank: A bank, on the other hand, will make a check in your credit history with every application you make. This could make your credit history look bad. They also have very limited access and cannot make good offers beyond the scope of the bank. They are also more focused towards selling a particular plan which will provide them more benefits
Time and effort
- Broker: With a mortgage broker, you hardly have to spend any time and effort. All you have to do is go and submit the required documents and they will compare the rates for you from various lenders and contact you after the best plan has been presented. Most of the negotiation and bargaining is done by your mortgage broker in Mississauga on your behalf.
- Bank: A bank is just one of many. If you want to shop for better rates, you need to go to another bank and another lender with your application and wait for them to approve you for a mortgage in Mississauga. This means, you will be spending at least three days at one bank for your approval alone. The mortgage process will then take longer and your dream project, be it a house or a plaza, will be delayed.
- Broker: The biggest benefit of working with a mortgage broker is that, you don’t have to worry about the second time. Your mortgage broker in Mississauga is well aware of when your mortgage renewal is due, and he will start preparing in advance for you. He will make sure that you get the best rates of the time and will compare your situation to the schemes available and can get you customized schemes to suit your needs.
- Bank: A bank on the other will give you an offer of their current rate in Mississauga and let you do the deciding. You will not be given any comparative rates. The rate you get will most likely be a modified version of the rates you were already paying and will give you only a marginal benefit in the long run. Banks also provide the renewal notice only shortly before and hence you are left with a limited period to shop and get good rates.
After deal service:
- Broker: A mortgage broker in Mississauga will definitely call you or inform you via the various means of communication of the various rates that are present. This can help keep you updated and can also help you understand the diverse options available. If you are looking to refinance or make an investment, you can easily use the information you mortgage broker in Mississauga sends you and make a well-informed decision about all the financials. They can provide you with updates about rate changes as well. With a mortgage broker in Mississauga, it is never over even if the deal is over.
- Bank: Banks do not do any kind of after deal service. They are not likely to keep you updated on the ever-changing trends of rates and prices like a mortgage broker in Mississauga would. They provide you with the deal and that is the end of your connection with them besides the monthly payments.
Comparing the above scenarios shows us that a Mortgage broker in Mississauga is a far better option than a bank. Mortgage brokers in Mississauga have varied and vast benefits when compared to banks. That is why you should choose a mortgage broker from Mississauga.