How do I get paid?
It’s a question we often get. And the answer is that we get a fee from the bank that we ultimately place your mortgage with. I think the real question is, why should you use a mortgage broker to negotiate your mortgage? And the answer is, why not? AS we’ve talked about before-the ultimate price that you end up paying-in rate-between negotiating on your own and using a mortgage broker , is by in large, usually the same. So why would you not want to pay for professional representation between you and the bank? Why is that important?
Well often not talked about, but some banks have honorous, small details or policies that they often don’t mention, that are really detrimental to you. For instance, you could be having a mortgage that could be completely closed, which means you cant pay it out or do anything without having to sell the property. What happens if you wanted to refinance or do something different with your mortgage in the middle of your term? The other one is, the way they register the mortgage will determine that they may have more restrictions on you being able to move your mortgage from that particular lender, and if you do, the payout penalty will be significantly higher?
Another one is, many banks have different ways that they calculate the interest rate penalties that you might have on refinancing or renegotiation your mortgage in the middle of the term.
The final one, is some of the lenders, when you do a line of credit as a component or all of your mortgage they don’t register the interest on title. Which of course means in the future, if they wish to change the rate on you, they would be able to do that.
The point I’m trying to make is that if the price is ultimately the same, then how do you make a decision on who has the privilege of managing your mortgage. And I think the answer is, why would I not choose professional representation, that has my back, as opposed to me going in alone and working with the bank directly.
Thanks for watching.