CTV Morning Live: Mortgage Minute - April 14
Frank Napolitano joins Jeff Hopper on CTV Morning Live to share a few useful tips on whether you should use a Bank versus a Mortgage Broker when shopping for your mortgage.
On this week's episode of the Mortgage Minute, Frank Napolitano discusses the difference in visiting a bank versus a Mortgage Broker when shopping around for a mortgage.
The banks issue posted rates and will occasionally advertise "special rates", which aren't always the best available on the market. Brokers have access to more than just one bank's rates, which results in banks and financial institutions competing for your business buy offering much lower rates. Banks can and will offer discounted rates to specific customers as well, depending on your portolio, whether your renewing, etc..
Banks provide one-sided information, they can only sell you products that are vailable to them, versus a broker who will shop your deal around, speaking with dozens of financial institutions. Penalties that come with dealing with a bank can be substantially higher than potential penalties that a monoline lender will charge you. Brokers work very closely with monoline lenders, which allows them to place you in a product that will allow you to port your mortgage, or break it with minimal penalties, if any at all.
If you don't fit a Bank's requirements, they may send your application to their alternate lending division, resulting in a much higher rate and restrictive product. Just because you don't fit their requirements, doesn't mean another traditional lender will refuse you. Broker are able to shop your deal around to ensure that if you can be approved at a traditional lender, they will get you approved. Bank will not guide you towards their competitors, as they are looking out for their own interests.
Understanding your mortgage can be complicated, and sometimes speaking to banks are very one-sided when explaining the pros of their products. Mortgage Brokers will explain to you the benefits and cons of each product, in a basic language to ensure you completely understand the product you are getting yourself into.
It is important to discuss all details of your mortgage with a professional. Contact one of our Mortgage Brokers for advice.