Real Estate

New home buyer - big bank mortgage or mortgage broker

  • Last Updated:
  • Aug 21st, 2019 3:14 pm
[OP]
Sr. Member
Mar 4, 2008
531 posts
88 upvotes
BC

New home buyer - big bank mortgage or mortgage broker

Just started to look into mortgages being a first time home buyer. Big bank mortgage v.s. mortgage broker. I'm starting to learn the language a bit...

I may have an opportunity to purchase a vacant lot and then building on it. Not sure how that all works out, sounds like one needs a lot more $$ for this...any good reading material on these topics?
6 replies
Deal Addict
Jan 15, 2017
3381 posts
2724 upvotes
Big banks have some of the most punitive mortgage break fees so I would avoid them.

In your case though, buying a vacant lot and building a home does not require the typical mortgage. You will be needing a construction loan that will eventually be repaid with a typical mortgage. Talk to a mortgage broker who has experience with construction loans.
Member
Oct 21, 2013
259 posts
102 upvotes
waterloo, on
hand down broker. After having dealt with both, i can tell good broker will always have better rates than a bank.
Royal LePage Realtor
Deal Guru
User avatar
Mar 23, 2008
11228 posts
7521 upvotes
Edmonton
JimboD wrote: Just started to look into mortgages being a first time home buyer. Big bank mortgage v.s. mortgage broker. I'm starting to learn the language a bit...

I may have an opportunity to purchase a vacant lot and then building on it. Not sure how that all works out, sounds like one needs a lot more $$ for this...any good reading material on these topics?
A broker will use big banks or smaller lenders to attempt to get you the best deal for your particular situation. For example, we went through a broker and ended up with a ScotiaBank mortgage.

C
Jr. Member
Jul 21, 2009
113 posts
16 upvotes
Mississauga
DealsFreak wrote: hand down broker. After having dealt with both, i can tell good broker will always have better rates than a bank.
Got any suggestions?
Sr. Member
Feb 19, 2019
791 posts
833 upvotes
Stouffville ON
albogino wrote: Got any suggestions?
For a good broker? Yes, recommendations I believe can only be made through PM, shoot me one if you are interested.
I agree that dealing with a mortgage broker is preferred because they source from various lending institutions versus the bank will obviously sell their own product, however while they will usually have better rates I wouldn't say they always have them, sometimes a bank may have a special for a specific product that is just hard to beat.
Full Time and Full Service Realtor
Member
Oct 21, 2013
259 posts
102 upvotes
waterloo, on
Yes, pm me. I will share details. Or refer to the main Mortgage thread. There are many good ones there.
Royal LePage Realtor

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