Benefits of a Mortgage Broker
There are many advantages for using a mortgage broker and, as time goes by, our role is becoming increasingly important in this fast paced, forever changing industry. One of the main benefits of using a mortgage broker is that we have access to, and a deep understanding of, the entire mortgage market. Whether it's getting you the best rate or most flexible options, we have a large network of banks and mortgage lenders to help you get the best mortgage!
If you were to ask me what is the #1 reason why you should consider working with a mortgage broker rather than “dealing” directly with your bank or lender, my answer would be this: PROTECTION.
Here in the province of New Brunswick, we are regulated by FCNB (Financial and Consumer Services Commission of NB) under the Mortgage Brokering Act of NB. Our primary fiduciary responsibility is to act in the best interest of our clients, at all times. In fact our regulators not only require us to disclose to you how we collect and use your information, but they also require us to complete detailed reports on each of our clients, ensuring that we have asked all the right questions and considered all of your needs before recommending a proposed lender / mortgage.
At the end of the day our relationship with you is an agency relationship, where we work as an agent for you, not the lender. This doesn't mean that we don't have to play by the "rules" set by banks, lenders our government agencies. It simply means that we consider your needs as being most important when trying to find you the best mortgage!
Banks and Credit Unions are governed under a different act. When you are dealing directly with the lender, you ultimately do so "at your own risk". Bank and lender employees operate under assumption that their primary fiduciary responsibility is to act in the best interest of their shareholders. When it comes down to it, their mandate is to protect shareholders, even if it means selling products or solutions that may not be in the best interest of the client.
The main reason why I chose this career path (when I left the bank in 2006) was so that I could put my clients first! We’ve built a business around this and truly believe that with proper education, one day we may see an industry where the protection of clients takes prevalence over the greed of banks, lenders and government agencies that have, at times, fostered inequalities not only in the mortgage industry, but in the financial services industry in general.