Should Use Your Bank or a Broker?

When you need mortgage financingĀ  for a new home or rental property, which would you use?

It is troubling that the big banks that all make a nice quarterly profit of over a billion dollars, don’t have your best interests in mind. When you try to contact them, you are often put on hold for 30 minutes or more because they don’t care enough about their customers to hire enough staff to answer the phone any quicker. You would think that even just asĀ a public service they could hire more people to help out the communities that they operate in by creating employment. Why wouldn’t they do that to keep their customers happy? Because all they care about is profits and making even more money.

So, having said that, we think that using a mortgage broker is the obvious choice since these individuals will want to make you happy since they rely on referrals from happy customers. They will go that extra mile to make you happy. Do you think that bank representative really cares about you? Their job is to sell you as many products as possible, including those terrible mutual funds they peddle to people. Those funds have so many fees that by the time all the commissions are paid, you get almost 0% return even if the fund does well.

A mortgage broker has access to at least 30 lenders including some of the big banks. Those same big banks will give a better rate to a broker than they will give to their loyal customers that have been with them for 20 years. In addition, if you have a questionable credit history, brokers can find lenders that will be willing to work with you. The banks may just say no.

Here is more on why you should use a broker instead of your bank that is only interested in profits.