The truth is you could very probably go into your local branch and get a mortgage fairly easily. They already have you as a client they have a good idea what your net worth is, because you have all of your accounts, RRSP’s, and possibly lines of credit with them.
You may very well be offered a good rate, but more often than not the bank will not offer you their best rate. The bank has a handicap in that they can only sell you the programs that they themselves offer. Bank A can’t sell you a program that Bank B offers, so their only option is to sell you on the merits of what they do offer, as if it was the greatest thing since the invention of sliced bread. Their program may very well be excellent for certain situations, but not necessarily the best for your circumstances.

You are a bright individual, and have decided going in, that you were not going to take the first rate, or deal with the first bank you see. Great, you are able to muddle through all the different programs offered by each bank and are ready to make an informed decision based upon your visits to 5 or 6 lending institutions. There are two drawbacks to this exercise.
1) You have put in an offer to purchase a home, and according to the promise to purchase you have a limited number of days to show that you have procured a mortgage. Can you truly find the time to run from one bank to another to secure a mortgage? The answer for most people is no.

2) Most consumers don’t realize that every time you approach a bank for a mortgage and they do a credit check, your beacon score tends to suffer because there are too many reports requested within a short period of time.

Therein lies the beauty of going to see a mortgage broker. The broker will only check your credit once and within the hour you will have virtually visited 20 lenders and chosen the best program and rate for you.

Are there drawbacks to visiting a mortgage broker? There are always drawbacks in whatever you do, and finding a trustworthy broker will eliminate some of them. Word of mouth is certainly a good indicator as to whether the broker is a reliable individual with your best interests at heart. Requesting references from satisfied clients is a route you may want to follow because you are making one of the largest purchases in your life and you have to feel absolutely comfortable and confident.

Shop Around For the Best Price

If you walked into a marketplace and the first 20 booths are selling the exact product that you are looking for, would you just buy it from the first vendor or would you shop around to find the best price? Most people shop around for all types of products from groceries to electronics and beyond just to save a few dollars. People will even drive across town because orange juice is on sale. Some families even spend their weekend clipping coupons to save a few cents on their weekly shopping list.

If You Shop to Save a Few Dollars, Why Not Shop to Save Thousands of Dollars

If you are willing to drive across town to save a few dollars or surf all over the web to save a few hundred dollars on a TV, why wouldn’t you shop around for the best rate on your mortgage which can save you thousands of dollars. Going over to your bank and asking them for a mortgage is the same as buying the product you are looking for from the first vendor.

Get a Personal Shopper

Wouldn’t you love it if you could stop comparing prices and shopping around? Everybody would appreciate having a personal shopper but the fact is that it is too expensive to have one and if you are clipping coupons, chances are that you cannot afford one. That is where the mortgage broker comes in.

Use a Mortgage Broker

A mortgage broker is your free personal shopper who does all the work and comparison shopping for you and then comes back to you with the best rate. Shopping for a mortgage is a lot more complicated than buying a TV because there are so many variables that go into your mortgage rate. They have to consider your credit score, your salary, the amount of revolving credit that you are already juggling and a whole lot more. A mortgage broker will take down all of your information and negotiate with each bank individually to get you the absolute best rate for your mortgage.

After using a mortgage broker, you are going to wish they had similar services for all of your other shopping needs.