Understanding the Mortgage Brokers Role in Calgary

What is the Difference Between a Mortgage Broker and Bank?

As market for mortgages become more competitive, the role of the mortgage broker has become more in demand. They simply exist to find a bank or a direct lender that an individual seeks with a specific loan which he/she is seeking. They are professionals whose job is to bring together lenders and borrowers and they usually work as a freelance agents with dozens or even hundreds of  lenders.

For those of you whose not familiar with what Mortgage Brokers is here’s the good ole WiKi:
A mortgage broker acts as an intermediary who brokers mortgage loans on behalf of individuals or businesses.

So what’s the difference between what a Mortgage Broker can do as opposed to what a Bank can do? Glad you asked!

Well first off, there’s the option of lenders.  For Bank Loan Officers they often have a variety of loan types to offer but just like any other banks, all the loans originate from one lending institution.  Unlike Mortgage Brokers, who have acces to a lot of lenders that can present lower interest rates for the consumer. They essentially do the shopping around for you, which does not hurt your credit score, like it would if you shopped yourself to a bunch of different banks.

A good mortgage broker can find a lender for just about any type of credit.  Mortgage brokers can even find lenders in a different parts of the country who can offer competitve rates.

Aside from that, they could also find a lender that a bank refuses or those who have problem credit - this is one of the advantages of using a Mortgage Broker.


They will use their knowledge in selecting lenders that will consider your case and not based on your individual circumstances. Unique or commercial property loans might be much easier to secure through Mortgage Brokers also.

Mortgage brokers will assist you in the application process, from pre-approval to home appraisal; however, it is important to note they are an origination service. A financial institution, not a mortgage broker, will provide and service your loan. The bank or lender will collect payments and provide customer service after the closing; however you can also reach out to your mortgage broker to help you throughout the life of your mortgage.

So make your choice of a lender based on the best loan terms you can find. Ask about expected time-frame. Ask those who have experience and knowledge on these things like a real estate agent or a mortgage broker.

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