In a report released by RBC Capital Markets, its estimated that 55% of Canadians get their mortgage from a mortgage expert while the remaining 45% choose to secure their mortgage through a bank branch representative. Although bank branch representative are authorized to offer mortgages, it’s only one of a multitude of products they are expected to know and offer. Mortgage experts on the other hand, focus solely on mortgages, a product complex enough to warrant such attention.
The report goes on to state that 55% of the mortgage experts are independent mortgage brokers who offer choice as well as independent council. Mortgage brokers represent the borrower and not the bank or mortgage company. The remaining 45% are bank employees known as mobile mortgage advisors, but are often mistaken for mortgage brokers. While these mobile mortgage advisors offer much more mortgage savvy than their bank branch counterparts, they lack the ability to offer mortgages from other lenders and are biased in terms of the advice they offer – they represent their employer and not you the borrower.
The next time you’re looking for a mortgage consider your options. Many borrowers’ don’t know where to go for advice and simply go into their bank branch and speak with a branch representative. Do you want to speak with a generalist or would you feel more comfortable with a specialist. If it’s a specialist you’re seeking make sure you know the difference between a mortgage broker and mobile mortgage advisor. By choosing the right person to secure your next mortgage you ensure you’ll get the mortgage that you’re looking for.