{"id":4603,"date":"2012-09-29T07:54:02","date_gmt":"2012-09-29T11:54:02","guid":{"rendered":"http:\/\/canadianbudgetbinder.com\/?p=4603"},"modified":"2025-02-22T11:52:01","modified_gmt":"2025-02-22T11:52:01","slug":"what-is-the-difference-between-a-mortgage-lender-vs-a-mortgage-broker","status":"publish","type":"post","link":"https:\/\/digitalskyweb.co\/canadianbudgetbinder.com\/2012\/09\/29\/what-is-the-difference-between-a-mortgage-lender-vs-a-mortgage-broker\/","title":{"rendered":"What Is the Difference Between a Mortgage Lender vs a Mortgage Broker?"},"content":{"rendered":"

KNOW WHERE TO SHOP BEFORE HUNTING FOR YOUR MORTGAGE<\/h2>\n

Many people shop for a house before getting approved for a mortgage but if you do it the other way around it may make real estate shopping far easier. <\/span><\/p>\n

Before you jump into the Multiple Listing Services to look for your starter home or even your dream home get your mortgage sorted and for that you will need either a mortgage broker or a mortgage lender. <\/span><\/p>\n

What’s the Difference between a Mortgage Lender vs a Mortgage Broker? There are so many terms thrown around in the finance world that it can be hard to figure out what means what. <\/span><\/p>\n

A mortgage<\/strong> lender lends money, while a mortgage broker finds money.<\/span><\/p>\n

Here we\u2019re going to talk about the differences and roles that these two play when you\u2019re trying to finance or refinance your home, and you\u2019ll be able to enter the process with your eyes wide open. <\/span><\/p>\n

You\u2019ll be able to see through the curtain and different tactics so you make the right decision for your financial future instead of theirs. <\/span><\/p>\n

Let\u2019s get started.<\/span><\/p>\n

What Does A Mortgage Lender Do?<\/h2>\n

\"The-Difference-between-a-mortgage-lender-vs.-mortgage-broker-in-Canada\"<\/p>\n

Unlike your local Toronto mortgage broker, a mortgage lender lends you money. This could be a bank, a credit union or a\u00a0<\/span>private mortgage lender<\/span>. <\/span><\/p>\n

You\u2019ll have to fill out a mortgage<\/strong> application with them, then you\u2019ll have to go through a whole process where they tell you they either want to work with your or not. <\/span><\/p>\n

This can be a stressful process, but in the end you\u2019ll either get the financing that you need to buy a home or you won\u2019t. It\u2019s a very binary procedure.<\/span><\/p>\n

Depending on what kind of mortgage lender you select for your mortgage, you\u2019ll have a different experience. If you have bad credit and use a private mortgage<\/strong> lender you may have a better experience.<\/span><\/p>\n

On the other hand if you have great credit and go to a conventional mortgage lender you could have a bad experience. <\/span><\/p>\n

It\u2019s all about how you fill out the mortgage application.<\/span><\/p>\n

What Does A Mortgage Broker Do?<\/h2>\n

A mortgage broker is your intermediary between you and the <\/span>mortgage<\/strong> lender. You\u00a0shouldn’t\u00a0have to deal with these people directly; they\u2019re better equipped for the situation that you ever could hope to be. <\/span><\/p>\n

You need a skilled negotiator who can help you make the most of your application. They\u2019ll be able to help you look at what\u2019s wrong and what\u2019s right and answer any questions that you may have. <\/span><\/p>\n

There are so many things that can go wrong with your application so it\u2019s imperative that you have someone to help you. If you\u2019ve never filled out a mortgage application on your own before their help can be invaluable. Don\u2019t lose out on a good thing just because you\u2019re not sure what to do.<\/span><\/a><\/p>\n

How Does This Help You?<\/h2>\n

Depending on what kind of circumstances you have, you\u2019ll need to go about the mortgage process a specific way which means talking to the right person. <\/span><\/p>\n

If you\u2019re a Canadian with bad credit for example you may want to talk with a mortgage broker to see if there are credit repair procedures that you can do to get a better result. Taking a bad credit score and working on increasing it before getting a mortgage will get you a better interest rate in most cases because you are deemed reliable.
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If you\u2019re someone with a great credit score<\/a> you may want to talk with a private mortgage<\/strong> lender to see if you can get better terms which again will save you money in the long-run.
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Just because you have good credit doesn\u2019t mean you\u2019ll want to go with a conventional mortgage lender. It\u2019s all about what your situation is and what you need for your case. Talk with a mortgage broker today and see what is right for you before you jump in head first only to be disappointed by the outcome.
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Contribution Post: <\/strong>Mike Smith is a mortgage broker and avid blogger for\u00a0Home Base Mortgages. HBM is a Toronto mortgage broker that provides home mortgages, mortgage refinancing, home equity loans, debt consolidation,\u00a0<\/span><\/span>private mortgages<\/span> and second mortgages<\/span><\/p>\n

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