Busted! Don’t Believe These Mortgage Brokers Myths!

Mortgage brokers assist clients with home purchases, mortgage approvals, renewals and refinancing. With their expertise, they help you deal with complex transactions.

To get the best deal to hire a mortgage broker who can get you the best rates and terms to suit your financial position. They can find unique solutions to your financial problems, from construction to equity mortgage.

To help you steer clear of these misconceptions, Rowan Smith Mortgage Broker has debunked some of the most widely believed myths about mortgage brokers.

Myth 1: Mortgage brokers charge high fees on deals
This is not true. In most transactions, brokers are paid a “finder’s fee” from the lender. If they don’t get a mortgage, they don’t get paid. They are not allowed to charge fees upfront on residential transactions, and in isolated situations where they do charge fees, it must come from the mortgage proceeds, not directly. This ensures the client gets the service for which the fee is paid. 95% of transactions don’t include fees. The 5% are commercial or in situations where someone borrows private money because a bank cannot help.

Myth 2: Mortgage brokers always get the best rate
While we wish this were true, there are times when banks get competitive and aggressive over an existing relationship and may undercut the broker. We often get the best rate, but what makes brokers stand out is the personalized service, education, and ensuring you get the right product. The product with the lowest rate might not be the right product in the long term as it might have larger penalties, restrictive rules, or limitations on your ability to refinance. Mortgage brokers know the various banks and all their nuances to ensure you get a product that is not just a good rate but a good financial strategy.

Myth 3: Looking around for multiple brokers will get me a better deal
All brokers deal with the same group of lenders and promotions. Dealing with different brokers only confuses the part of the lender. Who is the client dealing with? Do both brokers have client consent to shop the mortgage around? We all generally get the same rates at the same lenders. Give or take 0.05% to 0.10%. You should compare prices but also see who responds to your calls and emails the quickest and offers you a customized service that makes you feel as though they have your best interests at heart rather than just attempting to close a deal.

If you’re looking to steer clear of these myths, reach out to Rowan Smith Mortgage Broker as the leading mortgage broker in West Broadway, Vancouver, BC.

With 21 years of experience in banking and brokering, I co-own City Wide Mortgage Services with my three business partners. We offer services including straightforward home purchases and complex transactions such as construction, private lending, commercial, and debt restructuring while in foreclosure. We serve 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, we’d love to hear from you. For more information, please call us at (604) 657-6775 or email us at rowan@citywidemortgage.ca.