Why Choose a Mortgage Broker vs. Bank Specialist?

Here is something from Michael Ledingham at Verico Select Mortgages. He is a local Mortgage Broker who many of my clients have done business with in the past and who has posted items on this blog in the past. Once again, he has offered to share his knowledge of the financial side of real estate. I spoke to him this morning and asked him if he had anything written that would outline the difference between mortgage brokers and the more traditional way of getting your mortgage from a bank. I asked him about this because I still find there are a lot of people out there who don’t know about the advantages of working with a mortgage broker. Being the son of someone who does mortgages for a major bank you would think I would be biased the other way, but I want what’s best for my clients.

Ryan Coffey

Why Choose a Mortgage Broker vs. Bank Specialist?

There are actually a number of differences which you may not be aware of.

Here’s some information to help you understand.

  • A Mortgage Broker works for you, the client, whereas Bank Specialists are employed by the financial institution.

  • The benefit of using a Mortgage Broker is the fact that they have the ability to offer you mortgage products from a number of financial institutions. Because a Bank Specialists works for the bank that means that they can usually only offer you their institution’s products.

  • Mortgage Brokers are typically paid the same amount no matter what rate is offered to the client. Bank specialists’ rate of pay is generally reduced in direct relation to the amount they discount your rate from the bank’s posted rate.

  • Depending on your Province, Mortgage Brokers must be licensed and are subject to a strict set of requirements. Bank specialists are not licensed and require no formal training.

  • Because Mortgage Brokers don’t work for a specific lender, you’re assured that you will be given impartial advice. A bank specialist has a limited number of their own institutions products and while it may not be the best mortgage product out there, they will do their best to sell you their institutions mortgage product cause if they don’t your going somewhere else.

  • Mortgage Brokers use their knowledge and experience to negotiate the best possible rate and product for you from a number of lenders. When you see a bank specialist, that mortgage negotiating is typically left up to you.

  • For conventional financing, the services of a Mortgager Broker are generally provided at no cost to you. If there is a cost, you will be advised of those costs up front.

So in conclusion, if you have the ability to use the services of a professional Mortgage Broker and have that Mortgage Broker do all your mortgage leg work at no cost, why would you not take advantage of the offer?


Michael Ledingham – Licensed Mortgage Broker

Tel # 250-755-3014 Ext:224

TF # 1-877-750-3014

Fax # 250-755-1608

Email: m.ledingham@vericoselect.com # 101- 1801 Bowen Road,  Nanaimo B.C.  V9S 1H1  

Click here for Michael’s WEBSITE

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