Mortgage Broker vs. Direct Bank: Which One Is Right For You?

Are you thinking of getting a home mortgage or refinancing your current home loan?

Before, homebuyers and homeowners could only go to their banks for their mortgage needs. But now, you have more options with the emergence of mortgage brokers.

While both are good options, your best choice depends on your situation and needs. So in this video, we'll discuss the main differences between using a mortgage broker versus going directly to a bank.

Relationship

You may already have an ongoing relationship with your bank and consider them trustworthy. However, a good mortgage broker may be able to offer you options and personalized attention that your bank does not.

Choices

If you go to your bank, they are limited to offering only their own mortgage products. On the other hand, a mortgage broker works with numerous lenders and banks, allowing you to compare products and rates.

Focus

Both banks and mortgage brokers can provide information and suggestions on mortgages. However, a bank loan officer is more of a generalist since home mortgages are not a bank's sole focus. A mortgage broker, however, has specialized mortgage knowledge. They have access to and understanding of what different lenders offer and can even create a list showing mortgage products that suit your financial circumstances and needs.

Convenience

Applying for a loan requires a lot of paperwork. While your bank already has most of your financial information, they might still require you to visit their branch physically to submit other documents. With a mortgage broker, you can submit all the paperwork online, and they will process everything for you. This includes shopping around for the best deals and rates by applying to multiple lenders.