30 Mar Let brokers do the legwork

Postmedia News March 30, 2011

 Traditionally, Canadians have gone to their local bank for a mortgage, yet a growing number are letting mortgage brokers do the legwork.

Yet mortgage brokers will tell you a good portion of home buyers don’t really understand what they do.

Brokers should not be confused with “rovers,” mortgage specialists attached to a specific financial institution who visit customers outside of banking hours, explains Gary Siegle of Invis Inc., a mortgage firm in Calgary.

“They only deal with that bank’s product. A broker, however, is an intermediary whose job is to make a match between a lender and a borrower. We represent the individual, not the bank.”

Going for the comfort factor could cost you however, adds Perry Quinton of the Investor Education Fund, a non-profit financial information service. “A broker has access to different lenders including banks, and can shop rates and features. A half per cent may not sound like much but that could make a difference of about $20,000 for a $250,000 mortgage amortized over 25 years. Any little bit helps.”

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