Many people head straight to their bank when it comes time to apply for a home loan, but finance experts warn, you may be missing out on significant benefits if you do. There are countless reasons why it pays to use a mortgage broker when shopping for your home loan, and even if you want to use your own bank for your mortgage, you can still use a mortgage broker to process paperwork and manage the application on your behalf.

Mortgage brokers are usually free to use as they earn a commission from the lender you choose to go with, and they are able to help you find a loan even if you don’t fit into the usual criteria, including those who are self-employed, credit impaired or receiving an income from the government in the form of a pension.


  • * First of all Mortgage brokers specialize in home loans and are commission based, so it is in acheter viagra their best interest to get you the best rate possible, or they don’t get paid.
  • * They have an exceptionally large network of lenders that they work with to get you the most favourable mortgage rates and terms. Put it this way, the more lenders you have competing for your home loan, the more you save.
  • * Mortgage brokers are able to work one-on-one with each individual client, evaluate their specific needs and find a lender that suits them personally. Next, the broker submits the request to one or more lenders and when the request is accepted the broker works closely with the lender until the home loan closes.
  • * They can often find a lender who accepts home loans that the bank foregoes. Mortgage brokers are also able to discuss a lower interest rate from lenders in trade for bringing in business.
  • * All-in-all mortgage brokers save you the groundwork of finding the best mortgage rate and terms for your specific needs.
  • * Banks on the other hand deal with all types of loans and may not have the specialization in home loans that a mortgage broker has.
  • * Bank loan officers process mortgage loans originated by only their employer.
  • * Loan officers at a bank are often limited to certain home loan products, guiding principles and criteria that they must follow. This can a lot of times limit the
  • home loans available.
  • * Regardless if you choose to have your home loan with that particular loan officer or not, they are still getting paid a salary. With this in mind they may not be looking out for the best interest of you.
  • * Banks do not have a network of lenders that they work with. Every home loan application the bank receives is from one lending institution.


Still not sure? Here are 7 reasons why you should use a local Mortgage Broker instead of a bank to obtain a mortgage loan.

  1. Mortgage Brokers are often small local businesses – not mega banks or big corporations. As a local business, they’ll know the area you’re looking to purchase a home in better, so they may be able to offer loan options, like aUSDA Rural Development Single Family Housing Guaranteed Loan Program, based on that knowledge.
  2. * Mortgage Brokers only handle mortgages, so they know all the ins and outs about various home loans. Bank employees also offer checking and savings accounts, credit card accounts, car loans, business financial services and investment planning. Therefore, bank employees may be poorly trained on the various mortgage programs available to borrowers, because they’re so busy handling a variety of other banking services.
  3. * Mortgage Brokers are like having your own personal shopper for mortgage loans. They’ll look at lots of different loan options based on YOUR individual needs (such as Conventional, FHA, HomeReady, etc.) – giving you choices to choose from. When you have choices, that sets up competition between lenders, so that’s good for you. When you go to the bank for a loan, they’re limited to only offering you their own loan products.
  4. * Mortgage Brokers can offer you lower wholesale interest rates – saving you money. Bank branches often offer higher retail rates.
  5. * Mortgage Brokers have more flexibility in the terms they offer. Banks offer fewer term options.
  6. * Mortgage Brokers typically don’t advertise on TV, whereas banks do. Advertising costs are ultimately passed onto consumers by banks (often recouped through the various fees they charge).
  7. * Mortgage Brokers are required to be state licensed, but banks don’t have to be.