Some Major Banks are trying to scare people out of using a Mortgage Broker. They will tell you we only deal with banks out of Toronto and our clients will not have access to anyone face to face. They try to scare you on the fact that you will be talking to automated phone lines trying to get answers to your questions. They’ll tell you we charge fees, you’ll need to change your banking accounts.
THIS IS NOT TRUE!
These banks will try to tell their clients anything to try to have you sign a mortgage with them. We DO have access to Major banks, Credit Unions and Treasury Branches. Yes, we do also have access to mortgage lenders, like they will tell you, that are strictly mortgage lenders and they do not have branches in the Red Deer area. We actually have close to 50 lenders available to us.
Of course the banks that are trying to tell their customers that a mortgage with a broker is a bad thing are the same companies that choose not to deal with mortgage brokers.
Even if YOU choose not to sign with any of the Major Banks, Credit Unions, or Treasury Branches that we have access to, the mortgage companies that we deal with are not as evil as the Banks will tell you.
Let me go over some of what the banks will tell you to try to get your mortgage:
You will never get to talk to someone when you call in to ask a question! – This is the one I find most amusing, have you ever tried to call your bank? That can be quite the ordeal trying to get a person on the line. For the most part you don’t even need to call the bank, call your mortgage broker on their cell 24 hours a day/ Seven days a week. But in the case that you need to call the lender, most of the mortgage lenders have actual people working for them and will answer the phone when you call. Sure they will have the usual ‘press 1 for English’ thing, but other than that, you’re talking to a person. If you have or have had a mortgage you know that you really only talk to your lender once or twice in a 5 year term, if at all, about it anyway.
They will Charge you a Fee! – This is another amusing statement that some make. A Mortgage Brokerage will not charge you a fee, and there is extra cost to you in getting a mortgage with a Brokerage. We are paid on a referral basis through the banks or lenders. These referral fees are not charged back to you in the mortgage. There is the odd very difficult, Private lender, mortgages that may require an additional fee.
You will need to switch your Bank Accounts! – Any bank that YOU choose to sign up with will be able to debit any current account that you have. Even if your currently banking with RBC and you choose to go with Scotia bank with us, You will not have to change any banking at all.
For a Home Equity Line Of Credit (HELOC) You Don’t have Access to Your Money. – Sure you do not have access to the HELOC funds as easy as the major banks, But is that a bad thing? HELOC’s with major lenders can give you debit cards, Cheques, or branch access to obtain your funds. Easy stuff. With a HELOC with say Dominion Lending Mortgages, all you have to do is make a quick call, again to a person, and ask for funds. The funds are deposited into your bank account that you submit for withdrawal of your payments the next day. simple but not to simple.
Most of the mortgage lenders that we use offer lower rates than your bank because they don’t need or want to harass you for your Bank accounts, RRSP’s, credit cards or Investments. They also don’t have branch rent, staff, utilities, or other related costs to having a branch so they can offer you the low rate right off the get go.
The thing that the branches will do that I really don’t understand is not offer you their best rate right off the bat. They will bank on loyalty. Some people are pretty loyal to their bank cause they have had an account since they were 5 at the bank of Such n’ Such. Most places will offer you 1% off their posted rates. They sit, Hope you sign it, and go on with their day. If you don’t take that, how about 1.10% off? Still No? Ok then they send you out, find a better rate, then re-book an appointment with them, Then they will see if they will match it, not beat it. Basically – go out, do the job of a mortgage broker, and come back to me is what they are saying. Is that loyalty back to you? or is that Wasting your time?
I have worked at a branch before, the more interest they charge you the better the bank does. The better the bank does, the higher the high-five the person behind the desk gets (if you know what I mean)! This is also part of the reason I am no longer at a bank.
For more mortgage information or to apply online visit my webpage http://www.scottbourke.ca/how-to-apply-mortgage
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Thanks For Reading
Scott Bourke, AMP
Dominion Lending Centres Regional Mortgage Group