Purchasing a home is a complex process, so why add another member to the team? There are strong arguments both for working with and without a mortgage broker, but what it all comes down to is personal preference. At the end of the day, this is your journey and you need to do what’s best for you. This week we want to review what you get when working with a broker so you can determine the best fit for your unique situation.
The Stats on Broker Use
In 2017, the Canadian Mortgage and Housing Corporation released the results of their Mortgage Consumer Survey. It turns out that mortgage brokers are consistently gaining a larger share of the market with 55% of first-time home buyers, 35% of mortgage renewals, 40% of refinances, and 40% of repeat buyers choosing to work with a broker.
How Do You Feel About Options?
If you already have a longstanding relationship with a lender and don’t have any interest in working with anyone else, you don’t need a mortgage broker. If you’re like most Canadians and want access to great rates and conditions regardless of the lender, then a broker can be your most strategic asset. One argument against brokers is that they won’t be able to give you access to every single lender on the market, as some will only work with individuals. So the suggestion is to find your perfect lender on your own, ensuring that you don’t miss out by researching every available option. That brings us to our next point.
How Much Time Do You Have?
Vetting lenders take a lot of time. You want to know what rates they offer, if you meet their borrowing requirements, what kinds of programs they have, and a whole host of other factors. If you are familiar with real estate and have a lot of extra time on your hands, this may be something you want to do yourself and bypass the broker. Those who work full time, run a business or a family, or simply don’t have an interest in devoting this much energy to finding a lender will enjoy the streamlined nature of working with a broker. A broker can narrow down your options to only those that will fit your situation.
Mortgage brokers, like our team at Source Mortgage, can help with more than just the initial home buying steps. Refinancing, renewals, debt relief, and a variety of mortgage product offerings allow them to support you throughout your entire homeownership journey from start to finish. When you’re ready to start working with a broker, contact us for a consultation. We look forward to working with you!