• Douglas Paterson

Biggest Differences between Mortgage Brokers & Mortgage Specialists

Updated: Apr 7, 2021


mortgage broker in Milton meeting with happy client

To most consumers not working in the in the mortgage market, the terms “mortgage broker” and “mortgage specialist” may seem compatible – but they absolutely are NOT. As a current or soon to be homeowner, the differences are far more important than you think.

First off, it is crucial to understand how these groups are defined before looking at the biggest differences. Mortgage brokers belong to an independent firm, often called a brokerage. This allows them unique access to resources, rates and offers from a wide variety of lenders including banks, credit unions, private lenders, and alternative lenders. On the other hand, a mortgage specialist is an employee of a single lender who works to sell clients their institutional products.


WHY WORK WITH A MORTGAGE BROKER VS A SPECIALIST


1. MORTGAGE BROKERS WORK FOR YOU THE BORROWER!

Unlike a mortgage specialist, who is paid by the bank to sell their products, brokers work for the borrower! They serve as an unbiased link between you, the borrower and the lender. They filter through dozens of options and scenarios to find you the best rate and the best terms for your situation. The best part? A mortgage broker’s services are normally 100% FREE to the borrower! Mortgage brokers are paid by the lender of choice once the ideal mortgage product has been found and funded. This means you get expert advice, client centric service and access to dozens of lenders at no cost!



bank vs mortgage broker in Milton


2. MORTGAGE BROKERS CARE FOR THEIR CLIENTS

Further to the above, Mortgage Brokers care for their clients. Not only because they work for YOU but also because most brokers are self-employed and rely on referrals and spotless reviews. Since most of their business is generated through word-of-mouth, and positive recommendations only occur following a positive experience, the result is typically a long line of happy clients and customers. Afterall if a broker is not on top of their game when it comes to service, they will not be playing very long. The cream rises to the top, through referrals! Every Dominion Lending Centres mortgage broker is highly motivated to help you achieve your dream of home ownership and have a positive experience throughout the process!





3. MORTGAGE BROKERS ARE LICENSED PROFESSIONALS!

It might surprise you to know that mortgage and bank specialists are not required to have any formal training before recommending mortgage products to you. While some banks and lenders do provide “in-house training”, this simply does not compare to the provincially regulated education that mortgage brokers are required to pass. Mortgage brokers also continue their education through license renewals, monthly product trainings and educational courses. At the end of the day when working with a broker you can rest assured, they are well trained and vetted by a government regulated body (FISRA) and are well prepared to provide you expert advice that you can trust!


4. MORTGAGE BROKERS HAVE GREATER ACCESS TO RATES

A mortgage broker is employed by an independent firm and typically have access to 40+ lenders and hundreds of different rates. While a mortgage specialist only has access to the rates and products of a single organization. Simply put, if working with a specialist your options and due diligence are massively reduced. This can mean a big difference in rates and mortgage terms for prospective and current homeowners! If you are looking at getting a mortgage with your bank, then your mortgage specialist can tell you exactly what your bank has to offer because they normally work with all the big banks as well. So not only can they get you a mortgage from your bank, but they can show you options for the other banks and lenders as well. When you are looking for the best mortgage product to fit your unique needs, more options to choose from simply makes good sense!


5. MORTGAGE BROKERS FOCUS ON MORTGAGES

When it comes to mortgage brokers, all they do is mortgages; they live and breath home ownership and borrowing funds to make it happen! Mortgage specialists and bank staff are often trained with a focus on cross-selling. While you may have booked an appointment to discuss a mortgage, more often than not you will find yourself also discussing their other product they feel you may need as well. This might include offering credit cards, insurance, RRSP, lines of credit, etc. Yes, in some cases this may be helpful, but many potential homeowners find it overwhelming, pushy or at the very least a distraction from the main task at hand of nailing down the best mortgage for their unique needs and goals.


6. MORTGAGE BROKERS OFFER FLEXIBLE HOURS

Most banks don’t offer great business hours, which can make it hard to book an appointment with a specialist. As many mortgage brokers are self-employed contractors, they are motivated to assist clients at times most convenient to the client. This means they are often available for appointments outside of business hours such as early mornings, evenings or weekends. This can be especially comforting to individuals who work 9 to 5 jobs or are simply new to the mortgage process and may have questions or concerns that they would prefer to have answered right away.


BOTTOM LINE

When comparing mortgage brokers to mortgage specialists, a savvy borrower will usually be best served speaking with a mortgage broker prior to committing to their mortgage. Service, expertise and understanding your options are critical when it come to what is likely to be the biggest investment of your life.




Doug Paterson

Mortgage Agent in Ontario, Canada.

Dominion Lending Centres.

416.432.8836 | www.dougpaterson.com


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