Interest Rates-- Mortgage Brokers vs Banks

Why is it Mortgage Brokers can often offer lower rates than Banks?

Mortgage Brokers have several Lenders to choose from.  At any time at least 1 Lender  has a rate on sale , so to speak.  With TMG we have over 50 lenders to choose from. Not all Lenders will be a  fit for every client.  Each Lender has their own policies. Some look for excellent credit, some look for fast closings, some look for okay credit and it is as varied as there are Lenders.

While the Bank only has one to choose from.  Themselves. 

The best way to find out which rate you qualify for is to sit down with a Mortgage Broker and fill out an application.  The bonus with using a Mortgage Broker is they only have to check your credit rating once for all of their Lenders which is over 50 with TMG.  Every time you go into a different bank they each have to check your credit rating which will take a small hit on your credit rating.  This is not the end of the world type of problem but do limit how many Banks do this as you want to be in the best position in your credit rating to get the best rates available. Rates are directly tied to your credit rating.

Once you have a free and no obligation quote from your Mortgage Broker find a Bank with great rates and get a quote from them.  If you really want to stay with your Bank they may match what the Mortgage Broker quoted you.  Not what we as Mortgage Brokers want to happen but our client comes first and we want to see our client happy and satisfied with any choice they make.  The end result is a client who is happy with their mortgage choices.

A sample of rates being offered is below.


                        RATE COMPARISON
 

Mortgage Term                    TMG Rate            Bank Rate
1 Year Open                          6.30%                     6.30%
1 Year Closed                        2.75%                    3.50%
2 Year                                    2.99%                    3.85%
3 Year                                    2.89%                    4.35%
4 Year                                    2.99%                    4.19%
5 Year                                    3.39%                    5.24%
7 Year                                    4.49%                    6.35%
10 Year                                  4.79%                    6.75%
All rates are provided for information purposes only and are subject to change at any time. All rates are calculated semi-annually, not in advance. E & E.O.