When mortgage brokers first came on the scene, many years ago, the thought was that they were only there to help you get financing when you were desperate and your bank turned you away.
This may have been true over 40 years ago.
Today, thanks to mortgage brokers, we have access to a competitive marketplace. Yes, that is right. Mortgage brokers keep the industry competitive by their very nature. By bringing options and choice to the consumer, it forces the banks to remain competitive for your business.
There are many lenders that can only be accessed through the use of mortgage brokers, with products that offer the flexibility that should be important to consumers. Not only do you get the flexibility, but you also get a competitive rate.
The presence of these lenders keep the banks honest. Let’s face it, every lender is in it to make money, and the more you pay on your financing costs, the better it is for their bottom line.
IF there are say, only 5 options to choose from, the market is less competitive, and typically you will see that prices are set higher. However if there are 100 to 1000 options, then you will see that there may not be as wide a spread among the prices, and that there is a lot more competition. The more choice you have, the more on your toys your service providers have to be – which is typically great news for the consumer.
The presence of mortgage brokers makes the industry more competitive, and the completion means less of a spread in pricing, more competition in pricing, and more competition in flexibility, which is ultimately good for the consumer, so therefore mortgages brokers are a good idea.