There are several sizes of mortgages lenders across GTA and Canada as a whole. You have your large major banks like TD Canada Trust, RBC, CIBC, and so on. You also have smaller lenders like credit unions, but unfortunately home buyers usually stick to something they are familiar with like one of these major banks. Statistics have estimated at least 75% of all mortgages in Canada are funded through these big channels. However, what the client fails to realize is, they are missing out on much better rates and privileges, not to mention over all service, they can get within a mortgage brokerage.
Home Buyers tend to stick with these major banks because they have a sense of loyalty and security to that particular bank (they typically have done all their banking with them prior to their mortgage) and because of this they stay. What they do not realize is, there is a hefty price to pay associate with this imagined security. One of their biggest fears of putting their mortgage with a smaller lender is that the lender will go out of business. What they fail to see is that if that is ever the case the mortgage is taken over by another lender, therefore this should not be a worry.
If the current smaller lender is bought out by another lender, the new lender owner assumes the previous mortgages and honours all the same terms/dates. Once their maturity date approaches, the client has the option of going with the current lenders products/rates or refinancing with another lender.
The point of this blog is to showcase that smaller lenders do offer better rates and products and you should not always stick to the bigger banks for your mortgage. In the end, you will end up paying more out of your pocket for an imaged sense of security. Contact mortgage broker Robert Clancy today to get a better idea of how to do your mortgage the right way and save money! (416) 899-1467.