Do you know the difference between a Mortgage Broker and a Bank Mortgage Specialist?2015-10-14 11:22:59 Posted By Jila Rezai
There are actually a number of differences which you may not be aware of. Here's some information to help you better understand.
A Mortgage Broker works for you, the client; whereas Bank Specialists are employed by the financial institution. The benefit of using a Mortgage Broker is the fact that they have the ability to offer you mortgage products from a number of financial institutions. Because Bank Specialists work for the bank that means that they can usually only offer you their institutions' products.
Brokers are typically paid the same amount no matter what rate is offered to the client. Bank specialist's rate of pay is generally reduced in direct relation to the amount they discount your rate from the bank's posted rate. Depending on your Province, Mortgage Brokers must be licensed and are subject to a strict set of requirements. Accredited Mortgage Professionals (AMP) must take continuing education courses in order to maintain their accreditation. Bank specialists are not licensed and require no formal training.
Mortgage Brokers use their knowledge and experience to negotiate the best possible rate and product for you from a number of lenders and only get paid if they get you a mortgage. When you see a Bank Specialist, that mortgage negotiating is typically left up to you. For conventional financing, the services of a Mortgage Broker are generally paid by the lender. If there is a cost, you will be advised of those costs up front.
So in conclusion, if you have the ability to use the services of a professional Mortgage Broker and have that Mortgage Broker conduct all of your mortgage leg work at no cost, why would you not take advantage of the offer?
Source: Gibbard Group Financial