Busted! Don’t Believe These Myths About Mortgage Brokers!

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

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If you’re in the process of buying a house, chances are that you’re looking for a mortgage product to match your financial situation and requirements. However, during this process, many people end up falling for the number of misconceptions and myths about mortgage brokers, causing them to question the need to hire a broker for assistance.

These false facts have trickled through every layer of society and come to be believed as the truth, which prevents people from making maximum use of the services available to them. To help you steer clear of the misconceptions, Rowan Smith Mortgage Broker - City Wide Mortgage Services has debunked some of the most widely believed myths about mortgage brokers. 

Myth 1: Brokers charge fees
People think that brokers charge fees on every transaction. That is not true. When we broker a deal with a bank or credit union, the bank or credit union pays the broker a ‘finders fee.’ The only time a broker usually charges a fee is either during a commercial transaction or on a private lending file, as the lender does not pay the broker. For 95% of transactions that a broker does, there are no fees.

Myth 2: You can get a better rate going direct to the bank 
This is far from the truth. Brokers do hundreds of millions of dollars with each bank every year. Just like anything else, there is a volume discount that brokers are given. There is no haggling, no negotiation, and no “grinding” with a broker. They put their best foot forward with the best rate at the outset, whereas your banker may try and sell you a slightly higher rate if you haven’t been looking around and knowing where the market is.

Myth 3: The bank has your best interests at heart
Regardless of what their commercials show you, the bank is, at the core, a corporation. The goal of a corporation is to make money for the shareholders. While the nice person you’re dealing with may take an interest in you personally, at the end of the day, the product that you are sold makes the bank money. Period. The bank has no fiduciary obligation to you as a client. The obligation of the bank employee is to their employer, the bank. When working with a broker, they DO have a fiduciary duty to get you the best deal they can for your unique financial position, and they get volume discounted rates because they do so much business with the bank in question. 

If you’re looking to steer clear of these myths, reach out to Rowan Smith Mortgage Broker - City Wide Mortgage Services. As the best mortgage broker In Vancouver, BC, I focus on getting my clients the best rate, terms, and product that suits their unique financial position. As an independent broker, I have access to far more lenders than the average client is even aware of. I can ensure that whatever lender we place your mortgage with, the strategy we set up for you is optimal for the long term, not the short term.

I offer services like home purchase mortgage, mortgage pre-approval, mortgage renewal/refinance, construction mortgage, private lending, equity mortgage, debt consolidation, and self-employed mortgage. I offer my services to 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 our services, please click here. If you have any questions about Rowan Smith Mortgage Broker - City Wide Mortgage Services, I’d love to hear from you, please contact us here

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