3 Ways Brokers Help You Save

3 Ways Brokers Help You Save

Written by Caitlin Wood
Last Updated June 2, 2021

So it’s finally happening: you’re shopping for a new home. You have the whole home shopping experience figured out, but the financial stuff? That’s a different story. Should you visit a mortgage broker or go straight to your bank? What’s the best option?

Well, this guide will show you the three ways mortgage brokers will help you save money.

1. Brokers negotiate

Most people find it easier to just visit their bank and accept whatever the bank gives them. They are more worried about their approval than they are about getting a good deal. And while it’s getting tougher and tougher to find a mortgage these days, taking this strategy is not a good move. You are always better off negotiating as it can save you thousands of dollars during the course of your mortgage.

The only problem you, as an individual, face when negotiating with different lenders for the best rate is the fact that each lender pulls your credit score individually. If you used a mortgage broker your credit file would only be pulled once and your credit score wouldn’t take a hit.

In having your mortgage broker negotiate with lenders you’ll benefit from a mortgage broker’s expertise. Nobody knows the market better than a mortgage broker because a broker always needs to be informed of the best mortgage products available on the market to offer his or her clients the best services. Employing a mortgage broker is a winning strategy.

2. Brokers know who has the better deals

Since mortgage brokers deal with lenders (traditional, unconventional and private), they know the market better than anybody. If you are shopping for property and require financing, then of course you want to visit a mortgage broker. You are really limiting yourself to only a small amount of options if you don’t open yourself to the larger market through the services offered by a mortgage broker.

3. Brokers get the special rates

We discussed this in a different article and we’re going to discuss it again in this one, as it is one of the best assets a mortgage broker can offer its clients.

Mortgage brokers develop relationships with their lenders that often turn out to be quite fruitful. Lenders love how brokers refer them a lot of traffic and they reward brokers with special, unadvertised mortgage rates. The reason a lender can do this is because they can offset the loss in interest rate income with an increase in volume. If all lenders offered the same rates then a broker could deal with any lender. However, if a lender rewards a broker and his customers with a special rate, then that broker will bring that bank a lot of business, and that’s business that it may otherwise have lost!

Caitlin Wood is the Editor-in-Chief at Loans Canada and specializes in personal finance. She is a graduate of Dawson College and Concordia University and has been working in the personal finance industry for over eight years. Caitlin has covered various subjects such as debt, credit, and loans. Her work has been published on Zoocasa, GoDaddy, and deBanked. She believes that education and knowledge are the two most important factors in the creation of healthy financial habits. She also believes that openly discussing money and credit, and the responsibilities that come with them can lead to better decisions and a greater sense of financial security.

Click on the star to rate it!

How useful was this post?

Research & Compare

Canada's Loan Comparison Platform

Largest Lender Network In Canada

Save time and money with Loans Canada. Research and compare lenders before you apply. Share your experiences with Canada's top lenders.

Save With Loans Canada

Special Offers

Borrow $500-$50,000

Borrow $500-$50,000
NEW!

Don’t pay until March with this offer from our partner, Fairstone.* Ends January 31st.

View Offer
Cashback & Bonus Offer

Cashback & Bonus Offer
Ends March 1st, 2023

New Offer! Get up to $2,000 cashback + a $50 bonus on signing up. Conditions apply.

View Offer
Earn 5% Cash Back With Neo

Earn 5% Cash Back With Neo
No annual fee!

Earn an average 5%¹ cash back at thousands of partners and at least 0.5%² cashback guaranteed.

View Offer
Build Credit For $10/Month

Build Credit For $10/Month
Popular

With KOHO’s prepaid card you can build a better credit score for just $10/month.

View Offer
Best Personal Loan Provider by Greedy Rates
Icon

Confidential & risk-free

All consultations and conversations with Loans Canada and its partners are confidential and risk-free. Speak with a trusted specialist today and see how we can help you achieve your financial goals faster. Loans Canada and its partners will never ask you for an upfront fee, deposit or insurance payments on a loan. Loans Canada is not a mortgage broker and does not arrange mortgage loans or any other type of financial service.

When you apply for a Loans Canada service, our website simply refers your request to qualified third party providers who can assist you with your search. Loans Canada may receive compensation from the offers shown on its website.

Only provide your information to trusted sources and be aware of online phishing scams and the risks associated with them, including identity theft and financial loss. Nothing on this website constitutes professional and/or financial advice.

Your data is protected and your connection is encrypted.

Loans Canada Services Are 100% Free. Disclaimer

Build Credit For Just $10/Month

With KOHO's prepaid card you can build a better credit score for just $10/month.