Today, you and your spouse go looking for a new home. You’re excited because after years of scrimping and saving, you can finally afford your own place.
You’ve engaged a realtor and he’s called you to say that he’s found your new home. You visit the property and while its not perfect, your realtor insists that this is the home for you. He says there’s nothing else available that’s better suited and urges you to make an offer. He mentions at one point that he’s actually the owner of the property he’s showed you. You make an offer at the price he suggests and, hey presto, the offer is accepted!
You move in at the end of the month, happy that you’ve at least got a roof over your head.
It all sounds pretty unbelievable, doesn’t it? You can’t really imagine doing that, can you?
Let’s look at a similar scenario; one where you make a very similar choice.
A month or two earlier, you casually mention to your mum and dad that you’re going to start looking for a home. They’re both pleased and proud – they ask about your mortgage financing – and recommend you go see their account manager at Big Blue Blank.
Like most Canadians, you prefer going to the dentist over applying for credit, so after you meet with Cal from Big Blue, you’re pleased and relieved when he calls you later that day to say you’ve been pre approved for financing at a fixed rate. He’s even guaranteed the rate for 90 days! When you end up buying that not so perfect home, the mortgage is in place in a blink of an eye.
This time, the whole scenario is way more familiar, isn’t it? Why is the second scenario any more acceptable than the first?
A Mortgage Brokers’ value proposition is based upon the ability to offer independent advice about multiple products provided by multiple lending partners.
How we demonstrate that proposition is by providing both advice and options; advice on not only obtaining the right financing, but also repayment strategies and strategies to handle a changing interested rate environment.
By combining options on rates, terms, repayment privileges and to minimize penalties, we provide you with the one thing you didn’t get in either of the two scenarios – informed choice.
Dealing with a broker, any broker, gives each of us back something we are always looking for; control.
Courtesy of Jonathan Barlow, – DLC A Better Way