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Calgary Mortgage Broker Versus Banks - What You Should Know Before Choosing A Bank

Calgary Mortgage Broker Versus Banks

A Calgary mortgage broker offers many advantages over banks. Here is a rundown of the major differences between a mortgage broker Calgary and Calgary banks.

Organization Structure

The first difference is in the lending process. Banks have limited funds to draw from because they are single-institution lenders. Brokers, on the other hand, have access to many lending institutions. Some brokerage firms consist of teams that are in fields such as real estate, banking, and freelance brokering. Therefore, they are able to offer more flexible loan conditions. In addition, a broker can find you a mortgage that is closer to meeting your needs rather than catering exclusively to the lender’s conditions.

Loan Interest Rates

Here is a rough comparison of Calgary mortgage rates. These rates are subject to change, but this comparison will give you a fair idea of the difference between the lending rates of a Calgary mortgage broker and a local bank.

For a short term mortgage (6-12 months), a bank will charge an interest rate of 3.5-5 percent, while a best Calgary mortgage broker will charge around 2.8-4.5 percent interest. For 2-3 year term, you could be paying anything from 4.2 to 4.8 percent interest to the bank, while a broker can find you loans anywhere from 3.3 to 4 percent. The difference in interest rates is even steeper for long term mortgages. A 5-year mortgage with a bank costs 6.25 percent, while a broker can find you the same for 4.5 percent. For a 10 year loan, you can expect to pay interest at 2 percentage points higher to a bank.

Services

A Calgary mortgage broker’s services do not end at selling you a good loan package. They offer consultations to those looking to invest in local property. No one knows the Calgary property market better than Calgary brokers do. They will provide home evaluation service on request. Many brokers have online mortgage calculators on their website, allowing the customer to quickly calculate and compare mortgages. A Calgary mortgage broker generally helps debtors use their home equity to restructure debts. Besides debt management, a Calgary mortgage broker may also offer services aimed at credit repair. This includes issuing secured credit cards that allow the debtor the benefits of drawing money anytime, anywhere, without risking further strain to their credit record. Banks in general do not offer all of these services.

Keep these differences in mind the next time you are looking for a Calgary mortgage broker or bank for obtaining a home loan or borrowing against your home equity.

Finding The Best Calgary Mortgage Brokers

Finding the best Calgary mortgage broker can be difficult since there are so many of them. Usually in an industry that is lucrative like the mortgage industry you get a LOT of businesses that pop up and end up competing with each other for YOUR business.

But, not all mortgage brokers are good ones. And a poor mortgage broker can cost you dearly if you are really trying to get into your "dream" home. You only get so many strikes when trying to get a mortgage so you better make sure the first attempt goes through.

That is where a good mortgage broker comes into play. A good Calgary mortgage broker can help you qualify even when you have poor credit, or your self-employed, or your tax assessment is low.

Every single home I've bought I used a mortgage broker. And if it wasn't for my mortgage broker I probably would never have gotten into my current home.

Take your time to choose the best Calgary mortgage broker... it will be worth it!

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