Using a mortgage broker is a great way to get a better deal and to avoid the hassle of dealing with multiple companies. A Mortgage Company is responsible for acting in the best interest of their clients, and you can be assured of getting a deal that is right for you.
You may get a better deal
Using a mortgage broker to shop around for the best loan can be a smart move. These professionals are experts in the mortgage industry and can provide valuable insight into the local housing market. They can also help you navigate the loan application process and save you time in the process. They may even be able to get you a better deal than you can on your own.
Before entrusting your mortgage to a stranger, ask plenty of questions. Find out if they have experience in the field, what types of loans they can offer, and what type of compensation they receive from lenders.
You may be surprised to learn that some lenders actually pay their mortgage brokers, despite the fact that they don’t actually provide the services themselves. This is a major advantage because a mortgage broker has access to wholesale mortgage rates and can negotiate the best deal on your behalf. The broker’s fee may actually be cheaper than what you’d get from your own lender.
You can get a feel for a broker
Whether you’re a first time homebuyer, looking to refinance your current home, or are in the market for a new home, using a mortgage broker to help you find a mortgage can be a big help. However, it’s important to understand what a mortgage broker does and how they work before you commit to using one.
A mortgage broker can save you a lot of time by allowing you to compare a variety of loans. The broker can also make sure that your loan process moves smoothly from pre-approval to closing. This can be very beneficial if you’re trying to buy a home with a tight deadline.
A mortgage broker can also help you to find lenders who specialize in specific types of properties, such as condos or mobile homes. You can also find mortgage brokers who are experienced in helping people with bad credit or a unique financial situation.
The mortgage broker will be paid by the lender, which is why you need to ask about their fee structure. They may have a set fee for their services or they may receive a commission from the lender.
You are required by statutory obligation to act in the best interest of their clients
Using a mortgage broker requires you to consider whether you are acting in the best interests of your clients. This is a statutory obligation. The obligation comes into effect on 1 January 2021. The duty is designed to ensure that mortgage brokers align their interests with those of consumers. However, it is not intended to provide a safe harbour. If you provide a disclaimer or notice to your customers, this does not prevent your conduct from being breached.
As a mortgage broker, you are also required to resolve any conflicts in your client’s favour. This means that you cannot recommend a product or service that creates additional revenue for you. This rule applies if you make a recommendation to transfer assets or provide an advisory account. It also applies if you recommend a brokerage account or an IRA.
A broker may provide a benefit to you as a customer, such as a broker commission. However, this does not mean that the broker did not consider your interests. It is important to assess the value of the benefit and whether it offers a net benefit to the customer.