Head To Head Mortgage Brokers Vs. Mortgage Specialists
Navigating your way through the mortgage process can be very stressful and even a bit scary if you're a first-time home buyer or you are self-employed and trying to get a mortgage. As soon as you mention you're seeking a mortgage, opinions will fly about who you should go to and terms will pop up that you may not be familiar with; the first set being mortgage brokers and mortgage specialists. These terms are often used interchangeably, so is there really a big difference between Alberta mortgage brokers and specialists? Yes, there is.
Mortgage Brokers Work for You
The biggest difference between a broker and a specialist is that a broker works for you while a specialist works for the institution that cuts their paycheck. That's not to say mortgage specialists don't have their place in securing you a mortgage, but it does have an affect on the type of mortgage you get and the terms. Here are three of the main points to consider:
- Alberta mortgage brokers must complete formal training and continually upgrade their education to meet licensing requirements while a mortgage specialist is trained by the bank or institution where they are employed.
- Specialists can only sell you a mortgage offered by their institution, which can often lead to higher rates of interest. Brokers have access to a wide variety of lenders and mortgage types and can often secure better terms.
- Since a mortgage broker works for you, they take care of the negotiation process, seek the best offer and do most of the paperwork. With a specialist, you have to do all the work to secure your mortgage and they simply sell you the final product.
The Choice is Yours
To help you see the bigger picture, a difference of only half-a-percent in the interest on a $100,000 mortgage secured for a 25-year term is $6,401. While that may not seem like a large amount in the scheme of things, it's also important to note that very few mortgages are for such a low sum. If you're paying an extra $6,401 for each increment of $100,000, it starts to add up pretty fast. Negotiating the best interest rates and terms possible keeps more money in your pocket.
If you feel comfortable negotiating your own mortgage and trust that your financial institution has your best interests at heart, then by all means a mortgage specialist may be a sound choice. If the thought of handling all the details and haggling over rates makes you nauseated and stressed, then Alberta mortgage brokers are your best solution.
At Dominion Lending Centres, we understand how getting the best mortgage rate is important to you. Our team of experienced mortgage brokers is ready to help you and guide you throughout the process. Contact us today and get the mortgage you’ve been looking for.
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