Many of us tend to form a relationship with our bank even in these times of big banks. This does not mean, however, you should look to your personal bank for a mortgage.
It is a common misconception for people to assume that their bank will give them the best mortgage. It is a natural thing to assume, especially since people have often been banking with the same institution for many years and they feel comfortable with them. However, the fact is that if you limit yourself to going directly to your bank and getting a mortgage from them without looking elsewhere you are most likely shooting yourself in the foot. You are restricting the possibility of other options that might be better for you and this is never a good thing.
There is no doubt that your own bank might give you the plan you want. There is a chance that they will give you a good offer that would be tough to beat by any considerable margin elsewhere. However, this is just a chance. You will only know if it’s anything more than a chance by actually looking elsewhere. Sure, the comfort and trust factors weigh in, and these can be major factors since you want to trust the institution that is giving you such a large amount of money for such an important thing, but there are many other trustworthy lenders out there that may have a better offer for you. Keep in mind that it is possible that your bank will sell your mortgage to another lender anyway.
You could go to other major banks and lending companies, which you know of. However, each one would want to ‘pull a credit report’
that will reduce your credit score. The alternative is to go to a mortgage consultant instead where no lender/broker fee is charged whenever a borrower has good credit. A mortgage consultant will only pull ONE credit report and it will be good for over 40 different lenders - major banks, trust companies and even credit unions. Although most major banks offer fairly similar rates, some have ‘rate sales’ that are not advertised to the public where the mortgage consultant may get you a quarter or half a percentage point or more off, which might seem small but can actually turn out to saving you thousands of dollars in interest payments.
Mortgage brokers also deal with wholesale lenders that do not even deal with the public directly, they only deal with licensed mortgage brokers. These non-branch financial institutions can offer wholesale rates because they do not have the overhead of retail operations. These savings are passed on to you, the consumer, in the form of a more competitive interest rate.
It is to your benefit to check ‘Home n Work’ out - and not settle with your own bank just because they are the first place you check. It is important to get the right mortgage plan for you, and this will only be done properly if you evaluate your options.
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Rebecca joins the team with over 20 years of business, investment and real estate experience. A true advocate for the consumer, Rebecca brings you unparalleled integrity with unbiased advice. Phone anytime and discover for yourself just how easy and enjoyable the mortgage process can be.
Serving Metro Vancouver Area
Maple Ridge & Mission BC
Direct 604.614.2382
Fax 604.463.7886
rebeccaawram@homenwork.com
www.communitylendingcentre.com
Head Office:
#200 - 5050 Kingsway
Burnaby, B.C.
V5H 4C2
