# Mortgage Borker Vs. Bank



## DanielaT (May 18, 2015)

*Do you think it is advantageous to seek a mortgage from a broker?
*
The following is a statement from an article I came across online (http://www.ratehub.ca/bank-vs-mortgage-broker)

_"Bank vs. Mortgage Broker 

In the past, prospective home buyers turned exclusively to their banks for their mortgage needs, but you now have more options at your disposal with the growing presence of mortgage brokers. Independent mortgage brokers are licensed mortgage specialists who have access to multiple lenders and mortgage rates. They essentially negotiate the lowest rate for you, and because they acquire high quantities of mortgage products, mortgage brokers can pass volume discounts directly on to you. "
_


Having worked along side a mortgage agent in the past, I strongly believe using an agent is better than going directly to your financial institution, does any one agree?

For more information on mortgage rates or to speak to a reliable agent, feel free to visit http://michaeldenuzzo.ca/

Looking forward to hearing everyone's opinions!


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## Fain (Oct 11, 2009)

DanielaT said:


> *Do you think it is advantageous to seek a mortgage from a broker?
> *
> The following is a statement from an article I came across online (http://www.ratehub.ca/bank-vs-mortgage-broker)
> 
> ...


Mortgage Brokers all the way. Better rates, more options(35 year Mortgage).


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## MrMatt (Dec 21, 2011)

DanielaT said:


> *Do you think it is advantageous to seek a mortgage from a broker?
> *
> The following is a statement from an article I came across online (http://www.ratehub.ca/bank-vs-mortgage-broker)
> 
> ...


For most people, even those with decent financial literacy I think a good mortgage broker is a fast way to save time, effort and/or money.
If you spend time, and are capable, you should be able to get pretty much the same deal, but quite honestly for lots of people it isn't worth the effort.

I personally had a bad broker, their failures almost cause my financing to be late when I bought my home. Fortunately the realtor who recommended them stepped in and applied a lot of pressure to get things sorted out.


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## fraser (May 15, 2010)

Never used on BUT...when we did have a mortgage and rates were higher we used the threat of going to a mortgage broker or to a trust company in order to negotiate away appraisal fees, mortgage renewal fees, and to get a 1/4 point reduction on the rates that our bank was proposing. 

Just the mention of also getting a quote form a mortgage broker or a trust company did the trick. 

On renewals, it really helped that several of the competitors always seemed to be offering to pay all costs associated with switching to them. The bank (CIBC) rolled over on the charges each and every time. It was a friend who worked for CIBC who advised us to do this. Not certain that you could get a reduction on todays rates but you could most probably get all the fees waived and a few more early payment clauses inserted gratis. The fees can add up. As I recall they wanted $300. for the appraisal and $125. in admin fees each time the mortgage was renewed.


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## rikk (May 28, 2012)

I used a broker to get a short term open mortgage on a house that needed a lot of work meaning the usual suspects wouldn't touch it ...


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## DanielaT (May 18, 2015)

fraser said:


> Never used on BUT...when we did have a mortgage and rates were higher we used the threat of going to a mortgage broker or to a trust company in order to negotiate away appraisal fees, mortgage renewal fees, and to get a 1/4 point reduction on the rates that our bank was proposing.
> 
> Just the mention of also getting a quote form a mortgage broker or a trust company did the trick.
> 
> On renewals, it really helped that several of the competitors always seemed to be offering to pay all costs associated with switching to them. The bank (CIBC) rolled over on the charges each and every time. It was a friend who worked for CIBC who advised us to do this. Not certain that you could get a reduction on todays rates but you could most probably get all the fees waived and a few more early payment clauses inserted gratis. The fees can add up. As I recall they wanted $300. for the appraisal and $125. in admin fees each time the mortgage was renewed.


Those negotiation tactics were used for a long time with great success, however, because fixed rates and variable rates alike have dropped significantly over the last while; requesting a waiver or reduction of fees and associated costs may potentially result in a higher interest rate. Don't forget, the broker channel generates a tonne of revenue for the banks, so threatening to use a broker is no different then saying you are going to switch your mortgage; it is a well known fact that the bank branches often have a hard time competing with mortgage broker rates. Thank you for your reply!


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## DanielaT (May 18, 2015)

I couldn't have said it better myself. Thank you for your reply!


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## DanielaT (May 18, 2015)

MrMatt said:


> For most people, even those with decent financial literacy I think a good mortgage broker is a fast way to save time, effort and/or money.
> If you spend time, and are capable, you should be able to get pretty much the same deal, but quite honestly for lots of people it isn't worth the effort.
> 
> I personally had a bad broker, their failures almost cause my financing to be late when I bought my home. Fortunately the realtor who recommended them stepped in and applied a lot of pressure to get things sorted out.


I'm glad things worked out for you. You are absolutely right but being a good negotiator won't always get you the best deal if of course you have the time. Remember, brokers have an ace in the hole that most don't necessarily have, and that is their ability to buy down rates, essentially taking a hit on their compensation. The difference in rates in a situation like this can be in excess of 20bps. Thank you for your response!


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## DanielaT (May 18, 2015)

Fain said:


> Mortgage Brokers all the way. Better rates, more options(35 year Mortgage).


I couldn't have said it better myself. Thank you for your reply!


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## fraser (May 15, 2010)

Not sure what the contracts look like now but on the last one we did we asked for the contract to be modified...up to 2 lump sum payments per year, not exceeding 10 percent of the balance each and the ability to increase the ongoing biweekly payments by as much as twice one time during the calendar year. It must not have been a big deal because there was no discussion/negotiation-the bank agreed immediately to the request.


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## DanielaT (May 18, 2015)

fraser said:


> Not sure what the contracts look like now but on the last one we did we asked for the contract to be modified...up to 2 lump sum payments per year, not exceeding 10 percent of the balance each and the ability to increase the ongoing biweekly payments by as much as twice one time during the calendar year. It must not have been a big deal because there was no discussion/negotiation-the bank agreed immediately to the request.


I wonder why the pre-payment option only allows for 10%; it is usually 15% of the original balance each anniversary date with an unlimited amount of lump sum payments not exceeding 15% of that original balance. In addition to the lump sum, client's normally can also increase their regular payments by up to 15%, going directly towards principal. I would have a look at the cost of borrowing document and then check if this might be able to be adjusted further if you wish.


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## Just a Guy (Mar 27, 2012)

Personally, ive found you should check both. I've had banks who've done deals which brokers couldn't do and brokers do deals which banks couldn't do...I've also found there are different sections of the banks (small business, agriculture, private clients, etc.) that have different lending criteria that brokers can't always match or even tap into. 

Of course, if you're just doing a typical house, brokers probably are the better way to go, but not all real estate deals are homes, so brokers aren't always the best solution.


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## Barwelle (Feb 23, 2011)

I'm very sorry to pull this off topic, but I can't resist pointing out the typo in the title. I don't know if I'd trust a mortgage *borker*, considering the Swedish chef's antics in the muppet kitchen!


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## Eclectic12 (Oct 20, 2010)

fraser said:


> Never used on BUT...when we did have a mortgage and rates were higher we used the threat of going to a mortgage broker or to a trust company in order to negotiate away appraisal fees, mortgage renewal fees, and to get a 1/4 point reduction on the rates that our bank was proposing.
> 
> Just the mention of also getting a quote form a mortgage broker or a trust company did the trick...
> 
> Not sure what the contracts look like now but on the last one we did we asked for the contract to be modified...up to 2 lump sum payments per year, not exceeding 10 percent of the balance each and the ability to increase the ongoing biweekly payments by as much as twice one time during the calendar year. It must not have been a big deal ...


Or maybe you didn't ask for enough ... without getting quotes, how can one know? 

As an example, I recall that all the quotes my mortgage broker included unlimited number of times for extra payments, as long as the yearly total was under 25% of the original mortgage amount. There was no "balance" restriction that would reduce the amount as the mortgage is paid off. 


Both times I've used a mortgage broker, I wasn't locked into anything so I talked to various financial institutions in parallel ... so I'm not sure why one would skip the quote part.

Cheers


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## Daniel123 (May 4, 2015)

*mortgage broker*

I would probably look for mortgage brokers. I have contacted Northwood Mortgage in Toronto ( http://www.northwoodmortgage.com/mortgage-solutions/residential-1st-2nd-mortgages/ ) and they offered a better rate than those banks could give. I will definitely contact them for any future mortgage purposes.


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## Daniel123 (May 4, 2015)

*mortgage*

I would probably look for mortgage brokers. I have contacted Northwood Mortgage in Toronto ( http://www.northwoodmortgage.com/mortgage-solutions/residential-1st-2nd-mortgages/ ) and they offered a better rate than those banks could give. I will definitely contact them for any future mortgage purposes.


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