MORTGAGES VANCOUVER  
Tips, Advice, and Explanations from a Vancouver Mortgage Broker  

Why Use a Mortgage Broker? How are Mortgage Brokers Paid?

Through all my writing and explanations about mortgages and products, I’ve forgotten the fundamentals. Why use a mortgage broker? How are mortgage brokers paid?

I’ll address this in two forms:

1. Why use a mortgage broker

2. How are brokers Paid? Do I (the borrower) pay them? The banks?

WHY USE A MORTGAGE BROKER

First, and most importantly, we are skilled and educated professionals. We are familiar with many lenders in the market (if not ALL lenders), all the unique rules and policies of the lenders, and can best advise you which lender will give you the best rate, service, and pre-payment priviledges.

A lot of people get hung up on rate. “What is the best rate you have?” asks many a caller when they find my website. This is a very short-sighted and narrow view of your mortgage. The rate is equivalent to the “price” you pay. However, focusing exclusively on rate, is like staring at the sticker price on a 1979 AMC Gremlin for $1,000 and saying, “that’s the car for me!” The fact that the underlying car is a piece of garbage, and doesn’t suit your needs, is just (if not more) important than the price. You need to balance rate with other factors such as:

- Speed of approval
- Service after funding
- Pre-payment priviledges
- Flexibility of payments (skip-a-payment, etc…)
- Penalties to refinance or pay out
- Portability

With over 30 lenders in the market, and each having 5+ products, that is over 150 products that you need to know about to make an ideal choice. As a registered mortgage broker, I am able to navigate these murky (and often changing) waters and provide you with UNBIASED THIRD PARTY ADVICE. We are paid by the lenders, and are essentially paid the same at most lenders. Where your mortgage ends up only matters to me insofar as it is the ideal product for YOU in YOUR unique situation.

Mortgage brokers are mobile, available at non-traditional hours, and can come to your home on evenings and weekends to make the process more convenient.

Last reason to use a mortgage broker: our services are FREE! More on this below….

HOW ARE MORTGAGE BROKERS PAID

When dealing with your “garden variety” mortgage that is done through a bank YOU PAY NO FEE FOR THE SERVICES OF A MORTGAGE BROKER. We are paid by the banks.

Do you pay a higher rate by using a broker?

Answer: No. You often pay less.

Why?

Because mortgage brokers are paid a one time commission for sourcing out a mortgage. The bank only has to underwrite and approve the file based on the supporting paperwork. All the client “touch” and education is done by the brokers. Once the mortgage is done, the bank continues to collect the interest, but the broker is paid and no longer on the payroll. With a branch mortgage, the bank has to pay the employee, rent, and other overhead even after the mortgage funds.

You do NOT pay a higher rate when using a mortgage broker.

The mortgage broker’s commission is NOT built into the rate or fee you pay the bank.

On a typical transaction for a typical home there is NO FEE for a broker’s services.

The only time there are fees (for a reputable broker) are in non-standard situations dealing with private lenders due to bankruptcy, dismal credit, foreclosure, or other mitigating factors. In these situations the banks CAN’T lend the money (and thus pay the broker).

THE BOTTOM LINE

By using a mortgage broker you get a better rate, better service, and education in the process, and all this comes with NO FEE. It is truly a win win situation for both the client and the broker.

If you would like to receive true broker service and rates, please call me, 7 days a week, 365 days a year at 604-657-6775 and I will attend to your situation personally.

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