When considering a mortgage professional to work with, it’s helpful to first understand the distinctions between a mortgage broker and a bank’s mortgage representative. While both professions require a degree of training, experience, and knowledge, we prefer to distil the comparison down to purpose. What is their main function in the mortgage transaction and who do they represent? Let’s use two case examples to better understand the differences between a Canadalend mortgage professional and a chartered bank representative.
Canadalend Mortgage Professional
Consider the mortgage broker as an agent; just like those representing a professional athlete, music artist, or Hollywood actor. Their primary function is to serve the client’s needs and represent their interests while finding the best deal and negotiating the best price. In effect, they ‘shop’ the talent within a market, seeking the best match for all of the client’s needs; just like a mortgage broker does with your mortgage or home equity line of credit.
Chartered Bank Representative
A chartered bank holds your deposits, helps with your investments, and, where appropriate, aids with your retirement planning as well as financing loans and mortgages. Chartered banks are an important conduit of capital flow; in theory, facilitating lending sources for mortgages, equity loans and other credit products from a community’s savings deposits. So, without the chartered bank, it would be difficult for mortgage professionals to find the money to help finance your home purchase or refinance a home equity loan.
A chartered bank mortgage representative can effectively underwrite your mortgage or home equity product with their institution. Since the bank is the lender, they arrange the property appraisal and fund the loan themselves. It’s important to remember that if you’re negotiating directly with your local banker, you can leverage your savings, investment, and retirement portfolio into the discussion. Remember, they’re eager to retain all of your other business too.
Mortgage Broker vs. Mortgage Representative
So, just like with everything else, how you choose will most likely depend on who you are.
Some people will take a blank piece of paper, draw a line down the middle, and list out the advantages and disadvantages of each type of mortgage professional. Others will talk to their friends; especially those who have been through the home loan process before; a good cross section of experiences will help build your perspective. Then there’s the direct approach: setting up interviews with local lending candidates you’ve heard or seen advertised in the community.
There’s no ‘right’ answer or method to follow when seeking out a Canadalend mortgage; just your own. Look for the same traits you’d want in a new friend; integrity, transparency, honesty and forthcoming about themselves and their experiences. Remember, there’s no bad question!