What’s The Difference?
The difference between a banker and a broker comes down to the products each can offer, and where their allegiances lie.
A banker is paid by the bank, to make the bank money at your expense, while a mortgage broker is paid by the lender to get you the best mortgage available, which is to your benefit.
A mortgage broker has access to multiple lenders and shops around to get you the best mortgage product available for your needs.
Working with a mortgage broker provides you with options right across the board. Instead of having to go in and fight the bank for a deal, your mortgage broker does all the leg work and outlines your options at several lenders. Since the lender pays the mortgage broker upon closing, there is no cost to you for your brokers services.
A banker works for a single financial institution, and can only offer mortgage products from that institution.
As banks can only offer you their rates and products, they are very limited in how they can help you. They never offer you the best deal to start with, however, will eventually negotiate on terms and rates, but you will be responsible for doing the negotiations on your own.
If you have a mortgage up for renewal, or you would like to refinance, it is always in your best interest to contact your mortgage broker instead of dealing with the lender who currently holds your mortgage. Just because they were the best option previously, that doesn’t mean they will be the best option in the future.
If you or someone you know is considering a new mortgage, let’s connect to get you the best mortgage options available!
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