Should You Borrow from a Bank or a Mortgage Broker Like Pro Funds Mortgages?

What do We at Pro Funds Mortgages Recommend For Your Next Transaction? Glad You Asked...

If you’re looking to acquire real estate in the near future, then you should be congratulated on making an excellent decision. Real estate is one of the best investments you can possibly make in your future for a number of reasons. It steadily increases in value over time while simultaneously adding value and meaning to your life.

However, you’ll need to make a decision as to how to obtain your mortgage before you can become a property owner. Traditionally, many people have simply gone to the bank and asked for a mortgage, but more and more people are turning to mortgage brokers to make sure they are protected and being taken care of as they become new property owners. Is a mortgage broker the better, safer, smarter pick for you and your family? You might be surprised by the answer!

Getting the Best Possible Deal… and Most Importantly, Being Safe

If you already have a stellar relationship with a given bank, then a bank loan might be the option that makes the most sense. However, I urge you to be careful in making this decision.

In my experience, there is often a gap in real estate understanding within banks. The challenge is that the people working at the branch level are not focused on mortgages and real estate and often do not understand how the process works.

So why is this a problem?

Well, if the person arranging your mortgage doesn’t realize that your approval is conditional, they might give you some very costly advice.

It is very common for lenders to issue “conditional” approvals that are only usable if you can meet their requirements. If you can’t meet them, the commitment isn’t worth the paper it’s printed on.

It’s also important that your mortgage conditions are thoroughly reviewed because sometimes mortgage conditions are vague… and sometimes they are just downright unfavourable. At Pro Funds, this is the exact time of thing we pride ourselves on protecting our clients from.

So I can tell you with confidence that you really do NEED someone working on your behalf that can protect you from the fine print.

Please understand that I’m not intending to “put bank staff down”, but rather to explain why this requires your attention and how you can protect yourself.

It’s important to understand that the people who work in the branch are often splitting their time between a number of different activities. Here are just a few examples:

•         Setting up chequing accounts
•     Setting up other accounts
•     Credit card applications
•     Line of credit applications
•     Consolidation loan applications
•     Setting up TFSAs and RRSPs
•     Selling mutual funds
•     Selling other investments
•     Selling various forms of insurance related to their lending products
•     Day to day banking transitions, card setups, cheque issuing and book balancing

With all those things to do… how many mortgage files could they really have handled? How much could they really know about the process? Some may, but in my experience, the knowledge at the branch level is often insufficient to ensure that you are protected when buying real estate.

Think of working with an experienced mortgage broker or other mortgage professional as your best insurance for a purchase that is often the biggest one a Canadian ever makes. Ask questions, and make sure you’re covered!

A mortgage brokerage’s livelihood is in helping people from different situations and with a wide variety of different needs find the best possible option for them. Plus, a mortgage broker will do all the legwork for you when it comes to evaluating your options. When you borrow from a bank, it’s all up to you and that can be incredibly frustrating, not to mention time consuming.

Expert Help and Peace of Mind

When you choose to enlist the aid of a mortgage broker or specialist when it comes to finding the right mortgage options for you, you can rest assured that this person is focused. But you still need to test their knowledge! Make sure they handle a lot of files and ask them a few questions to see how they respond.

I encourage you to find someone you trust and build a relationship with them. Today, business is all about relationships. It’s what drives our economy. You need someone who knows you and is ready to help you in a mutually beneficial relationship.

And did I mention that the majority of the time working with a mortgage broker won’t cost you anything?

That’s right!

It’s well worth your time to seek out and secure the right relationship with a professional you trust.

Not only will the broker professionally assess your available options, help you pick the right one, and connect you with the resources you need to complete your purchase, but they’ll also make sure your ‘Is’ are dotted and your ‘Ts’ are crossed!

Let Pro Funds Mortgages Help You in your Next Real Estate Purchase

Here at Pro Funds, we’d be happy to help you make the best possible decisions when you’re buying your next property. Contact us at 1.888.330.3866 or info@profunds.ca and request to speak with a residential mortgage expert today!

The Pro Funds Team