If you’re thinking about purchasing a home, the first thing you need to do is secure a mortgage. Too many home buyers wait until they’ve found the home of their dreams before trying to attempt financing. But when choosing a financing option, you’ll usually have to decide between either a local or country-wide mortgage broker. There are some advantages to using a national, online broker over a traditional brick-and-mortar mortgage lender.
1. They Are More Convenient
Whether you’re idly thinking about your dream home or strongly considering an immediate purchase, online mortgage brokers put all the information that you need where you can review it at your own personal convenience. A local mortgage broker may require an appointment, and you’ll certainly need to be committed to the process. Online mortgage brokers often have helpful documentation and information that you can use to educate yourself before diving in.
2. They Are Easier to Compare
You can request rates from dozens of online mortgage companies at the same time through third-party intermediary services (or simply by sitting down and filling out a few online forms). The rates and terms will be sent to you directly and you’ll be able to compare them at your leisure, rather than feeling pressured in an office. When choosing a mortgage broker, even seemingly small differences in interest rates and fees can become extraordinarily costly.
3. They Are Less Expensive
Online mortgage brokers don’t have the overhead that a brick-and-mortar mortgage lending company does. They don’t need to pay as many staff members or expenses such as rent and utilities. This cost savings is usually directly translated into lower rates and fees, and also affords them the opportunity to do riskier lending.
4. They Are Technologically Savvy
The mortgage process is a lengthy one and it can be held back by paper and ink business transactions. Online banks are technologically savvy and can do a significant amount of electronic signing and electronic transmittal, both of which will speed up the process of getting your dream home.
Most mortgage lenders throughout Canada will offer very similar mortgage packages. The differences are primarily in the amount of risk they will take on and the rates that they offer. If you have a damaged credit history or additional considerations, you will almost always be able to get a better deal through an online mortgage broker. If you have fantastic credit and an excellent financial situation, a brick-and-mortar broker may still be sufficient.