Busted! Don’t Believe These Mortgage Myths!

Author: Rowan Smith Mortgage Broker - City Wide Mortgage Services | | Categories: Mortgage Broker , Mortgage Renewal , Mortgage Services


First-time home buyers often get their information second-hand from those who have already been in their shoes. Unfortunately, recycled information might not always work for you as everyone’s situation is different. When it comes to getting a mortgage, there is no room for error. Before you start doing paperwork, take some time to separate fact from fiction so that you get the terms you expect from your mortgage. To help you steer clear of misconceptions that could prove to be costly, Rowan Smith Mortgage Broker - City Wide Mortgage Services has debunked some of the most widely believed myths about mortgages.  

Myth 1: Mortgage Brokers charge fees
Mortgage brokers are typically paid a commission or Finder’s Fee when they place a mortgage with a bank. There ARE times that brokers charge fees, but those are not standard transactions and not done with traditional bank lenders. Your broker should be willing to discuss all fees with you upfront.

Myth 2: You can get a better deal going directly to a bank
As a mortgage broker, we send hundreds of millions of dollars to a bank each year. Who would they give a better deal to? The person that has a chequing account, a mortgage and has dealt with them for five years? Or the firm that sends them hundreds of mortgages every year and has worked with them for twenty-five years? Mortgage brokers often can get better rates at the same bank that a customer deals with than the customer can directly.

Myth 3: Every mortgage broker gets the same deal
Banks reward brokers that are efficient and send them significant volume. If a broker sends in a decent number of deals but only funds a low percentage, that is inefficient. However, if a broker sends in deals and nearly all pull through to completion, the second broker usually gets better rates or service than the first. Banks reward efficiency. Also, the more business a brokerage sends to a bank, the greater the discount they get. It’s the same as if you wanted to buy one widget or a hundred. The per-unit price is lower when you do a higher volume. This is the same with mortgages.

If you’re looking to steer clear of these myths, reach out to Rowan Smith Mortgage Broker - City Wide Mortgage Services. As the best city-wide mortgage service provider in Vancouver, BC, Rowan has been in banking and brokering for twenty-one years and an independent broker for eleven years. In addition to straightforward home purchases, he specializes in more complex transactions such as construction, private lending, commercial, and debt restructuring while in foreclosure.

The services offered include home purchase mortgage, mortgage pre-approval, mortgage renewal or refinance, construction mortgage, private lending, equity mortgage, debt consolidation, and self-employed mortgage. He serves clients across Vancouver, Yaletown, Burnaby, Richmond, Coquitlam, Surrey, South Surrey, White Rock, Langley City, Fort Langley, Langley Township, Aldergrove, Abbotsford, Chilliwack, Hope, and the surrounding areas.

For a complete list of my services, please click here. If you have any questions about Rowan Smith Mortgage Broker - City Wide Mortgage Services, I would love to hear from you, please contact me here

Read More Blog Articles