Mortgage Broker vs. Loan Officer

There are a number of differences between a Mortgage Broker and your conventional bank specialist/loan officer. While going to your bank for mortgage advice may feel more convenient or preferred as you’re in a familiar setting, be sure to weigh-in on the following:

 

Mortgage Broker Loan Officer
  • Work for you, the client

 

  • Employed by the financial institution

 

  • They can offer you mortgage products from a number of financial institutions
  • Since they are employed by the bank, they can usually only offer you their institutions products
  • Typically get paid the same regardless of what rate is offered to you, the client
  • Rate of pay is generally reduced in direct relation to the amount they discount your rate from the bank's posted rate.
  • In British Columbia, Mortgage Brokers must be licensed and are subject to a strict set of requirements. Accredited Mortgage Professionals (AMP) must take continuing education courses to maintain accreditation.
  • Are not licensed and do not require formal training.
  • Since Mortgage Brokers do not work for a specific lender, you are assured of impartial advice.
  • Have only a limited number of their institutions products and while it may not be the best product, will do their best to sell you on their product. (If they don't, you're going elsewhere.)
  • Mortage Brokers use their knowledge and expertise to negotiate the best possible rate and product from a number of lenders
  • Typically mortgage negotiating is left up to you.

 

How it works:

 

 

While there are no costs to using a loan officer employed by a financial institution for a conventional residential mortgage, the added services of a mortgage broker are also provided at NO COST TO YOU!

Mortgage brokers work on a referral basis and are self employed. Since the majority of a mortgage broker’s business is generated through word of mouth referrals, they are motivated to ensure their clients are extremely satisfied to keep their business growing. A loan officer is an employee of the bank and generates business through the bank’s existing customers.

Another benefit to a mortgage broker is they are generally available at unconventional appointment times – at a client’s convenience. A loan officer is usually only available during regular banking hours.

In conclusion, using a mortgage broker is a win/win situation. You get a licensed, educated professional to offer you the best mortgage product, interest rate and terms customized for your financial situation AT NO COST to you. Unfortunately, like any industry, not all mortgage brokers are equal – there are always a few bad seeds. Make sure you are comfortable with the service your Mortgage Brokers is providing and ask questions to ensure your Broker is properly qualified to meet your needs.

Talk to our in-house mortgage brokers at Centum Mortgage Store today!

Kelsey Ozeroff

Kelsey Ozeroff

REALTORĀ®
CENTURY 21 Mountainview Realty Ltd.
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