In the US, mortgage brokers have been facilitating mortgages since the 1980s. Still, many people are not familiar with the fact that they make the process of securing a mortgage very easy.
In Canada, according to the statistics available in 2011, less than half of the people were aware of the role of brokers in securing mortgage for property buyers.
Now a day, the client need not blindly trust their local banks for mortgages. If you approach a bank directly for mortgage advice, the banker will guide you only about the mortgage plans offered by that particular bank. A mortgage broker will advise the client on the plans being offered by other lenders also. So, his advice will be wider ranging and objective. Consumers now have a lot of information available to them and with the help of a mortgage broker Oshawa, they can decide on the mortgage plan and the bank which suits them the best. It may not be the same bank which they have trusted before for their banking needs but the mortgage plan will have a more reasonable rate of interest and will benefit them in the long run.
In the name of educating you about mortgage plans, the bank will most likely direct you to its website. On the other hand, the mortgage broker will take out time to sit with you and explain the plan to you in detail.
If you use the services of a mortgage broker, you can be assured that you will get the mortgage at the best rates of interest. This is because if the broker is working for a specific bank and is bringing in a lot of business, he will be offered discounted rate of interest as a reward by the bank. Even if he is working independently, he will want to maintain a loyal customer base and so he will try to get his customers the best interest rates. If you negotiate with the bank to lower the interest rates, they may eventually do so; but they may still end up charging you more in the garb of fees. The mortgage broker can pinpoint the fees concealed in the technical language of the documentation and interpret it for you, thus saving you money in the long run. A broker is experienced at negotiating with the banks and so saves the client a lot of hassle.
A competent broker will get the mortgage approved faster and at the best rates of interest. Otherwise, even if the bank approves the mortgage, sometimes it can be days before the rate of interest can be settled on after a lot of negotiations with the bank. The broker will explain the whole mortgage process to the client and allay any doubts and apprehensions. This is very reassuring to the client who may feel overwhelmed by the terms and conditions of the mortgage. The broker will take the time to interpret and explain the fine print to the client. An objective mortgage broker will offer more than one options of banks to the client and explain their mortgage plans in detail. So the client can make an educated and informed decision. Your broker will review your mortgage terms regularly during the year and advise you if there is a way to pay it off faster, thus helping you get out of debt earlier.