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Today’s Article

Toronto Mortgage Brokers – How To Choose The Right Toronto Mortgage Broker

Calgary Mortgage Broker Versus Banks

 

A Toronto mortgage broker offers many advantages over banks. Here is a rundown of the major differences between a mortgage broker Toronto and Toronto banks

 

Organization Structure

 

The first difference is in the lending process. Banks have limited funds to draw from because they are single-institution lenders. Brokers, on the other hand, have access to many lending institutions. Some brokerage firms consist of teams that are in fields such as real estate, banking, and freelance brokering. Therefore, they are able to offer more flexible loan conditions. In addition, a broker can find you a mortgage that is closer to meeting your needs rather than catering exclusively to the lender’s conditions.

 

Loan Interest Rates

 

Here is a rough comparison of Toronto mortgage rates. These rates are subject to change, but this comparison will give you a fair idea of the difference between the lending rates of a Toronto mortgage broker and a local bank.

 

For a short term mortgage (6-12 months), a bank will charge an interest rate of 3.5-5 percent, while a best Toronto mortgage broker will charge around 2.8-4.5 percent interest. For 2-3 year term, you could be paying anything from 4.2 to 4.8 percent interest to the bank, while a broker can find you loans anywhere from 3.3 to 4 percent. The difference in interest rates is even steeper for long term mortgages. A 5-year mortgage with a bank costs 6.25 percent, while a broker can find you the same for 4.5 percent. For a 10 year loan, you can expect to pay interest at 2 percentage points higher to a bank.

 

Services:

 

A Toronto mortgage broker’s services do not end at selling you a good loan package. They offer consultations to those looking to invest in local property. No one knows the Toronto property market better than Toronto brokers do. They will provide home evaluation service on request. Many brokers have online mortgage calculators on their website, allowing the customer to quickly calculate and compare mortgages. A Toronto mortgage broker generally helps debtors use their home equity to restructure debts. Besides debt management, a Toronto mortgage broker may also offer services aimed at credit repair. This includes issuing secured credit cards that allow the debtor the benefits of drawing money anytime, anywhere, without risking further strain to their credit record. Banks in general do not offer all of these services.

 

Keep these differences in mind the next time you are looking for a Toronto mortgage broker or bank for obtaining a home loan or borrowing against your home equity.

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