The Toronto Star article covering the pros and cons of utilizing mortgage brokers vs dealing directly with a bank offers insight into properly evaluating your own financial position and the scenario around your purchase.
"The main difference is a bank mortgage officer represents only the products their institution offers, while a mortgage broker is an intermediary who works with multiple lenders and is paid a referral fee by the lenders. Mortgage brokers are regulated in Ontario by the Financial Services Commission and require a licence.
While traditional banks still are used for mortgages by the majority of homeowners, “use of brokers is trending upward,” notes Monica Guido, manager of client relations with Canada Mortgage and Housing Corp. “It’s higher among first-time buyers. Finding a deal, or the desire to get the best rate, is the key reason people use a broker.”
Because mortgage brokers work with many lenders, including major banks, small lenders, insurance and trust companies, and private funds, they often have access to a better rate" - Text Quoted from the Toronto Star Article. However, for some purchasers that have taken out mortages from these smaller banks or trust companies via a broker, there are other things to consider that might have been good to know beforehand. One example is when it comes to needing a credit line and getting a better rate. Secured credit- linked to a mortgage, may not be an option for a purchaser if their mortgage isn't with the lender of the credit line. This could lead to only being able to secure a credit line at a much higher rate. It is important to consider your situation and what trade-offs matter the most.
We encourage you to read the article and make an informed decision before your purchase with us. Our goal is for our purchasers to experience a plesent and exciting process. Where we can mitigate any issues related to financing by keeping our purchasers informed, it helps ensure the experience we're hoping for. We have worked with the Royal Bank of Canada to provide no obligation assessments and pre-approvals for our purchasers because they understand the industry, provide fast & firm approvals (no need for credit checks every 3-4 months) and guarantee their approval for the whole duration of construction until closing. We recommend you check out our page that outlines their information and reach out to their approval representatives (Support->Purchase Financing).