Personal Finance

Mortgage Broker or on my own?

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  • Jan 21st, 2014 8:15 pm
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Oct 8, 2006
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Mortgage Broker or on my own?

So I'm planning to buy a home very soon and looking for a pre-approval and such.

I was wondering if going through a mortgage broker is a good idea or should I just go to banks and negogiate on my own?

If going on my own. Any recommendations on which places I should hit up for the lowest rates (first time home buyer). I don't want to go to 10 different places, maybe 5.

Also would people do quotes and preapprovals online or is it always face to face.
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Mar 24, 2008
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killoverme wrote:
Jan 7th, 2014 7:07 am
So I'm planning to buy a home very soon and looking for a pre-approval and such.

I was wondering if going through a mortgage broker is a good idea or should I just go to banks and negogiate on my own?

If going on my own. Any recommendations on which places I should hit up for the lowest rates (first time home buyer). I don't want to go to 10 different places, maybe 5.

Also would people do quotes and preapprovals online or is it always face to face.
I would start by looking at an independent site like Ratehub.ca to see what's being offered and then ask my bank for a quote. If this doesn't work out, I'll hire a mortgage broker as they can make the process easier in case your bank isn't willing to give you a good rate.
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Aug 19, 2013
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Like the previous poster said check out rates online. But I like to use a broker. They save me a lot of work and get me a great rate. I also just like working with my broker as she is very professional and is easier to reach (answers emails etc very quickly, and her office is very close to mine). I also don't pay anything. Now that said not all brokers are created equal and you may be able to get a similar rate on your own.

I use my broker not just to save money but also because I find her better to deal with then the banks.
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Apr 4, 2013
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Depends upon 2 things:

1. Your current understanding of mortgages,
2. Whether you want a mortgage that is best for you or whether you will just take any mortgage that is offered.

If you are quite knowledgable about mortgages, then by all means go it alone. If you want the best mortgage for you, working with a mortgage broker is the best advice.
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Oct 18, 2008
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killoverme wrote:
Jan 7th, 2014 7:07 am
So I'm planning to buy a home very soon and looking for a pre-approval and such.

I was wondering if going through a mortgage broker is a good idea or should I just go to banks and negogiate on my own?

If going on my own. Any recommendations on which places I should hit up for the lowest rates (first time home buyer). I don't want to go to 10 different places, maybe 5.

Also would people do quotes and preapprovals online or is it always face to face.
In either case, do some up front homework. Figure out if you want a fixed or variable, and for how long. I have had my mortgage with a bank for a long time, but come renewal time I bring the printout with the lowest rate available and if they don't at least match that I walk.

It also doesn't cost you anything to talk with a broker, which I would recommend. Banks have changed the terms and it is harder to get away clean to go with a new lender even when a renewal is up, a broker can explain that since it is a selling point for them.
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Feb 15, 2008
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Either way, you're going to have to pay a commission. Whether you go with the in-bank-branch people (who need the commission to pay the mortgage sales staff), or a mortgage broker, who charges a commission. The only way you could really DIY the whole mortgage process is to find some people who want a secure investment, and borrow from them.
TodayHello wrote:
Oct 16th, 2012 9:06 pm
...The Banks are smarter than you - they have floors full of people whose job it is to read Mark77 posts...
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Jul 16, 2003
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A mortgage broker will offer you the diversity of several lenders, but that does not always guarantee the lowest rate. A bank will limit to the corporation itself, which in turns generally means you may not get the lowest rate.

In my opinion, the best option is to talk to a few people, bank employees and brokers, and hear some opinions. Some folks will push a certain product, while others will show quite a bit of knowledge and guide you through the process.

Keep in mind that if you have good credit and stable employment, no broker should charge you anything.
Andre Oliveira - Mortgage Agent
Mortgage Intelligence - FSCO# 10428
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Mark77 wrote:
Jan 7th, 2014 6:40 pm
Either way, you're going to have to pay a commission. Whether you go with the in-bank-branch people (who need the commission to pay the mortgage sales staff), or a mortgage broker, who charges a commission. The only way you could really DIY the whole mortgage process is to find some people who want a secure investment, and borrow from them.
You don't pay a commission. The commissions paid are paid out of the interest you pay on your mortgage. Good luck finding a private investor who will give you a mortgage at a lower rate then you could get a financial institution. I have never paid a "commission" on a mortgage. Have you ever had a mortgage mark?
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Momof3cuties wrote:
Jan 7th, 2014 7:16 pm
You don't pay a commission.
Yes you do.
The commissions paid are paid out of the interest you pay on your mortgage.
Right.
Good luck finding a private investor who will give you a mortgage at a lower rate then you could get a financial institution.
There's people out there who buy GICs all the time. Someone could DIY their borrowing by going to family and friends, and shopping around such an investment. Essentially doing what a bank does.

Likewise, some mortgage brokers also do the same, raise money from investors, to go into mortgages. Mortgage brokers aren't just for borrowers. If you have some $$$$, particularly in a quantity large enough to fund an entire mortgage, nearly every mortgage broker out there would be glad to broker a transaction for you with a borrower. That's their business.
I have never paid a "commission" on a mortgage.
Yes you have, see your admission above. Someone is always paying for the services of a mortgage broker and/or in-branch bank employee. There is no avoiding this unless you go out and do your own leg-work to find an investor to fund your borrowing.
TodayHello wrote:
Oct 16th, 2012 9:06 pm
...The Banks are smarter than you - they have floors full of people whose job it is to read Mark77 posts...
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Troll alert. Proceed with caution.
Andre Oliveira - Mortgage Agent
Mortgage Intelligence - FSCO# 10428
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Mark77 wrote:
Jan 7th, 2014 7:33 pm
Someone is always paying for the services of a mortgage broker and/or in-branch bank employee. There is no avoiding this unless you go out and do your own leg-work to find an investor to fund your borrowing.
What kind of reasoning is that? If you have a lender that is offering you the mortgage at the lowest rate in the market and is not charging you fees on top of the loan amount, how is it that you are paying sales commission? Perhaps you mean that the lender is paying them a commission out of the total amount that you are obligated to pay?

Even if you find an investor yourself, you will still be paying your investor the same low rate that you would to a mortgage lender. It's the same thing whether you pay 2.7% to mortgage company or 2.7% to a private lender! How they distribute the money is their business.
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ksgill wrote:
Jan 7th, 2014 7:58 pm
What kind of reasoning is that? If you have a lender that is offering you the mortgage at the lowest rate in the market and is not charging you fees on top of the loan amount, how is it that you are paying sales commission? Perhaps you mean that the lender is paying them a commission out of the total amount that you are obligated to pay?
Whether you break it out in terms of a higher interest rate, "points", or whatever other way of approaching it, using the services of either a bank or a mortgage broker will cost you $$$ in commission.
Even if you find an investor yourself, you will still be paying your investor the same low rate that you would to a mortgage lender.
No, presumably you would pay a slightly lower rate because there is no middleman. However, an individual would have to do the legwork in order to find such an investor.

Every time someone like laptop-tech (a mortgage broker) arranges a loan, they get paid a commission in exchange for their services. Likewise, a person on the other end of the funding equation, such as a deposit broker, also gets paid. So eliminate those commissions, and both the beneficial lender and the beneficial borrower benefit.

Having said that, mortgage brokers, banks, etc., are set up to do this sort of business in large volumes, and it may very well be worth paying them their fees instead of the alternatives. Plus people in the business usually will have far more sophisticated connections to the mortgage investment community than an individual could develop on a DIY basis. Meaning that they may very well be able to deliver a loan at a lower rate, even once their commission is paid.
It's the same thing whether you pay 2.7% to mortgage company or 2.7% to a private lender! How they distribute the money is their business.
Well you wouldn't be paying the same rate to the 'private lender' if you arranged it yourself. After all, if the "private lender" goes through a mortgage broker and/or a deposit broker, they're getting less than 2.7% -- they're getting, perhaps, 2.4% on their money. So taking the midpoint of, for instance, 2.7%, and 2.4%, is 2.55%, meaning that there can be savings by cutting out the middleman on both the lending and the borrowing sides.
TodayHello wrote:
Oct 16th, 2012 9:06 pm
...The Banks are smarter than you - they have floors full of people whose job it is to read Mark77 posts...
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Mark77 wrote:
Jan 7th, 2014 8:19 pm
No, presumably you would pay a slightly lower rate because there is no middleman. However, an individual would have to do the legwork in order to find such an investor.

Every time someone like laptop-tech (a mortgage broker) arranges a loan, they get paid a commission in exchange for their services. Likewise, a person on the other end of the funding equation, such as a deposit broker, also gets paid. So eliminate those commissions, and both the beneficial lender and the beneficial borrower benefit.

Having said that, mortgage brokers, banks, etc., are set up to do this sort of business in large volumes, and it may very well be worth paying them their fees instead of the alternatives. Plus people in the business usually will have far more sophisticated connections to the mortgage investment community than an individual could develop on a DIY basis. Meaning that they may very well be able to deliver a loan at a lower rate, even once their commission is paid.

Well you wouldn't be paying the same rate to the 'private lender' if you arranged it yourself. After all, if the "private lender" goes through a mortgage broker and/or a deposit broker, they're getting less than 2.7% -- they're getting, perhaps, 2.4% on their money. So taking the midpoint of, for instance, 2.7%, and 2.4%, is 2.55%, meaning that there can be savings by cutting out the middleman on both the lending and the borrowing sides.
Are you speaking from experience that such lenders exist who will give you a mortgage for less than market rate? Seems like another pointless argument since you have never had a mortgage before. Such lenders, if they exist will actually charge you a higher rate of interest if anything.
Jr. Member
Dec 14, 2013
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Toronto
Hey Mark I talked to a mortgage broker today ..he said that CMHC does not protect any mortgages under one year old. That means the lender is on the hook not CMHC if the borrower defaults, did you know this?
Jr. Member
Dec 14, 2013
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Toronto
I always use a mortgage broker for the past ten years and have gotten the deals done through them and haven't looked back.

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