Mortgage Broker vs Mortgage Specialist: What’s the Difference?

Mortgage Basics Laurence Rabie 4 Jan

Mortgage Broker vs Mortgage Specialist: What’s the Difference?
To most homeowners not working in the mortgage industry, the terms “mortgage broker” and “mortgage specialist” would appear interchangeable– however they are not. As a homeowner, the distinctions are more crucial than you could assume.

Most importantly, it is necessary to comprehend the definition of these two professions prior to checking out the significant distinctions. Mortgage brokers are accredited professionals under their respective provincial governments and must, by regulation, act in all times in the absolute best interests of their client, you! Mortgage brokers belong to an independent mortgage brokerage. This allows them special access to lower rates as well as offers from numerous lending institutions (banks, financial institutions, credit unions, private lenders as well as alternative lenders).

Alternatively, a mortgage specialist is employed by a bank and works to market that specific lenders’ mortgage products only, significantly impeding their capacity to offer the very best solution for their customers.

Top 8 Reasons Why You Should Work With A Mortgage Broker
#1 Mortgage Brokers Work For You
Unlike a mortgage specialist, who is paid by the bank to sell their products, a mortgage broker works for YOU! A mortgage broker functions as a link between you and the mortgage lender; they sift through the different products to find you the very best product, with the best rate, terms, and conditions. The very best part? A mortgage broker’s services are FREE! Brokers are paid by the mortgage lender once the mortgage product has been chosen. This means you get to use their expert guidance as well as getting access to multiple lenders at no cost!

Mortgage brokers work for you, not the lender. Their commitment is with their customers and they put the customers interests first. They do not have any loyalty to one particular lender.

#2 Mortgage Brokers Care About You
Mortgage Brokers take care of their customers. A lot of mortgage brokers are self employed and depend on referrals. As a majority of their business is done through word-of-mouth, this results in the very best experience for clients. The credibility of a mortgage broker is built on giving remarkable service and professional unbiased advice. As they grow their business, their clients’ satisfaction with the process and results means everything to them.

#3 Mortgage Brokers Are Licensed and More Educated
It might surprise you to know that mortgage and financial institution specialists are not required to have any kind of official education or training. While some lending institutions do offer internal training, this differs vastly from the provincially controlled educational programs and exam that mortgage brokers are required to pass. Mortgage brokers additionally continue to maintain their mortgage knowledge and expertise via continuing education as well as license renewals. As a result, a mortgage broker provides professional advice you can trust! Mortgage brokers are experts. Tellers and other bank mortgage specialists are not licensed mortgage professionals and they only understand their own bank’s products or services. For that reason, they cannot recommend to you various other mortgage lenders.

#4 Mortgage Brokers Have Access to Better Rates
A mortgage broker is employed by an independent mortgage brokerage and has access to 50+ mortgage lenders, while a mortgage specialist can only access their specific lenders’ products. This can have a big effect on rates, terms and conditions that are offered for customers! If you are considering getting a mortgage with your financial institution (such as Royal Bank or Van City for example), beware that the mortgage specialist at the financial institution can only offer the products and rates that they have. But, by getting the advice of a mortgage broker, they can tell you what at least 10 various other competitors of the Royal Bank or Van City can offer you… guaranteeing you that you obtain the best mortgage rates, terms and conditions. When you are trying to find the best mortgage product to fit your needs, having more lenders to choose from just makes good sense!

#5 Mortgage Brokers Focus Only On Mortgages
When it comes to mortgage brokers, all they do is mortgage financing; they live and breathe mortgages! Mortgage specialists, on the other hand are frequently trained with a focus on cross-selling various other bank products. While you may have booked an appointment to talk about a mortgage, often the bank’s mortgage specialist will concentrate on other bank products such as opening bank accounts, getting a credit card, insurance coverage, RRSP’s, investments, credit lines, and so on. This can often be helpful, but lots of potential homeowners might discover it frustrating or pushy; particularly when they are especially looking for a single product– a mortgage.

#6 Mortgage Brokers Offer Flexible Hours to Connect
Most banks don’t provide flexible business hours, which can make it hard to book an in-person or phone appointment with a mortgage specialist. As numerous mortgage brokers are self-employed, they are encouraged to help clients and are frequently available for in-person or phone appointments beyond regular business hours such as evenings or weekends. This can be very appealing to individuals that are brand-new to the mortgage process because they may have concerns or problems that they would prefer to have responded to right away.

#7 Mortgage Brokers Shop the Best Mortgage Rates and Options
Mortgage brokers shop the best rates and the best mortgage options from a list of 50+ banks, credit unions, monoline lenders as well as trust companies to find the best solution for you. Mortgage specialists can only offer their own lending institution’s mortgage options, which is very limited. How will you know if you got the best mortgage?

#8 Mortgage Brokers Access Your Credit Bureau Once
Mortgage brokers access your credit bureau once. Many people accidentally disqualify themselves from getting the best mortgage when they are purchasing a home mortgage or refinancing by simply having multiple lenders pull their credit bureau. When several banks or credit unions access your credit bureau, the score can drop, sometimes eliminating the chance for the very best mortgage. And in some rare cases, it could eliminate the chance of getting a mortgage at all! It is always best to play it safe and use the services of a mortgage broker – one credit bureau inquiry and that’s it!